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Maersk returns to the FMC over an accusation against Hamburg Sud

A furniture importer levels sharp criticism at Maersk carrier Hamburg Süd, demanding huge compensation. The case is one of several filed with the US maritime authority.

Maersk is the latest carrier to face the ire of American shippers in a high-profile case that will spark greater debate about global carrier dominance in international trade.

 

OJ Commerce (OJC), a Florida-based furniture importer, has filed a case with the Federal Maritime Commission (FMC) in Washington DC against the Danish carrier and its subsidiary Hamburg Sud, hitting out at alleged price gouging, collusion and contract breaches, the latest in a series of complaints hitting the FMC’s busy in-tray.

Federal Maritime Commission - Wikipedia

The accusations from OJC are more headline-grabbing than other recent complaints, and have been given further limelight by the American firm’s decision to go very public on the case with a long report carried by the New York Times among others.

After the attack that took place during the summer by the American shippers’ association U Shippers, the Danish company is having to deal with an accusation made in particular against its subsidiary Hamburg Sud by Oj Commerce, a furniture importer based in Florida.

The defendant’s conduct is similar, namely that of not having honored the existing sea transport contracts, prompting the customer to turn to the much more expensive spot market.

The most significant difference with the previous cases, notes Splash, is perhaps more in the media relevance that Oj Commerce’s complaint is having, given that the matter was dealt with yesterday by none other than the New York Times, in an article in which described the legal battle between the two as an emblematic confrontation of the great power in the hands of the carriers.

According to the reconstruction of the newspaper, the disputed conduct dates back to April 2021 and concerns Hamburg Süd in particular, which allegedly refused to load some of the Ojc containers at the agreed rates, saying it did not have space on its ships.

The company, which estimates the damages suffered at $22 million, claims the refusal would have halted the expansion of its division dedicated to importing furniture from China and Vietnam to the United States.

National Shipper Advisory Committee for FMC gets Senate push - FreightWaves

According to the complaint, the company then entered into lengthy negotiations aimed at presenting a new offer to OJC which would have been valid starting from June 2021, unless negotiations were interrupted.

In this regard, the NYT reports the text of some emails that would have been exchanged internally by the staff of Hamburg Sud; in particular one of the North American top management of the company would have written:

“We should not engage in any renewal negotiations in the light of possible legal disputes”, to then also add “Furthermore, I would not provide them with space under the existing contract”.

In the documents filed with the FMC, the newspaper still notes, the carrier claimed to have however complied with the terms of its contract with OJ Commerce.

Bjørn Vang Jensen joins Sea-Intelligence's management team

Commenting on all the cases piling up at the FMC,,Bjørn Vang Jensen vice president at liner consultancy Sea-Intelligence, told Splash: “It seems quite clear from both the complaints and suits filed and from my own experience that carriers, and to some extent forwarders, over-reached in many cases. It is a classic case of hubris, and we all know what follows hubris.”

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