An American shipper specializing in furniture has just filed a lawsuit with the US Federal Maritime Commission (FMC) to sue a number of international container shipping lines, in which this owner believes that the sued shipping lines have repeatedly violated the law. In violation of the provisions of the U.S. Shipping Law, the suit seeks $600,000 in damages. This lawsuit is sure to become the focus of the attention of shippers, who are severely affected by the escalation of freight rates as well as the reliability of the extremely prolonged shipping service during this period. COVID-19 pandemic period.
MCS Industries, which is headquartered in Pennsylvania and has customers such as Target, Walmart, Home Depot and Lowe’s, filed a lawsuit with FMC last week, with carriers COSCO and MSC granted stated in the application.
In the lawsuit, MCS argues that these shipping lines have taken advantage of customers “unfairly and unreasonably”, and accused the carriers of colluding to manipulate the market.
“International shipping lines have taken similar and simultaneous actions to raise ocean freight rates and thereby increase profits, while shippers and consumers are the main losers,” said MCS. suffer”. MCS argues that collusion between shipping lines is easy in the current context, given the fact that only three shipping alliances dominate more than 90% of the market share of the East-West shipping lanes.
According to the lawsuit, these shipping lines did not comply with the contractual commitments signed between the carriers with MCS, forcing the company to transport many shipments with spot rates, and this rate is extremely expensive. Red.
“The collusion between shipping alliances has provided the defendants (the shipping lines) an enabling environment and an opportunity for the carriers to cooperate in taking discriminatory actions. with shippers, such as the alleged act herein of breaching contracts of carriage with shippers such as MCS to exploit opportunities for profit in the spot market,” the lawsuit alleges.
MCS is a leading enterprise in the US market in supplying picture frames, picture frames, mirrors, wall decorations, architectural and decorative moldings.. to serve the process. construction and renovation of buildings and houses.
The move by the MCS is notable given that in recent weeks, US officials have approved giving the FMC greater powers to investigate shipping-related activities.
And also in this period, container shipping lines are still on the journey to reach the highest profit level ever in their operating history right in 2021, the profit level is expected to double. three times the highest figure ever recorded in the industry before.
According to nenlogistics
