Alaska seafood shippers pay $9.5 million penalty for violating federal law

Two Alaska seafood shipping companies agreed to pay a $9.5 million penalty to the federal government for violations related to their use of a tiny rail track in Canada that the federal government said was an illegal attempt to avoid requirements of the U.S. Jones Act.

Kloosterboer International Forwarding and Alaska Reefer Management accepted the settlement in January, agreeing to what amounts to the second-largest settlement involving the act, the U.S. Department of Justice said in a statement Feb. 23.

The companies provide transportation and logistics services as part of the American Seafood...