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FMC cites Yang Ming for gouging US shipper during Covid crisis
来源：shippingazette 编辑：编辑部 发布：2022/08/31 09:39:37
A COMPLAINT filed against Yang Ming Marine Transport with the US Federal Maritime Commission (FMC) by New Jersey home furnishing firm Achim Importing Company, has been settled out of court, reports Singapore's Splash 247.
Details of the settlement will not be made public, as agreed by the two parties. The FMC has approved the agreement and dismissed the proceeding ¡°with prejudice".
The FMC's verified complaint document indicated that Achim was seeking "reparations for injuries" caused by Yang Ming's violations of the Shipping Act.
It said Yang Ming had, in Achim's opinion, "taken advantage of price inflation in container shipping during the Covid crisis and unjustly and unreasonably exploited customers, "vastly increasing its profitability at the expense of shippers".
The complaint continued: "Instead of honouring the pricing and minimum quantity commitments in its service contract with complainant, the respondent began a practice of systematically favouring other shippers, including spot market purchasers willing to pay high rates, over the complainant. As a result, the complainant had to obtain space on the spot market at enormous expense."
In May 2020, Yang Ming and Achim signed a one-year contract that provided Achim a minimum of 200 TEU on Yang Ming vessels. According to Achim, however, Yang Ming made available only 31 TEU in the contract term.
"As a result of the respondent's 169-TEU shortfall, the complainant had to seek carriage from other sources at higher rates, or else forego shipments entirely. The complainant had to spend at least US$1,325,962 more than the contracted prices to ship 169 TEU on the spot market to make up for the respondent's 169-TEU shortfall."
Details of the settlement will not be made public, as agreed by the two parties. The FMC has approved the agreement and dismissed the proceeding ¡°with prejudice".
The FMC's verified complaint document indicated that Achim was seeking "reparations for injuries" caused by Yang Ming's violations of the Shipping Act.
It said Yang Ming had, in Achim's opinion, "taken advantage of price inflation in container shipping during the Covid crisis and unjustly and unreasonably exploited customers, "vastly increasing its profitability at the expense of shippers".
The complaint continued: "Instead of honouring the pricing and minimum quantity commitments in its service contract with complainant, the respondent began a practice of systematically favouring other shippers, including spot market purchasers willing to pay high rates, over the complainant. As a result, the complainant had to obtain space on the spot market at enormous expense."
In May 2020, Yang Ming and Achim signed a one-year contract that provided Achim a minimum of 200 TEU on Yang Ming vessels. According to Achim, however, Yang Ming made available only 31 TEU in the contract term.
"As a result of the respondent's 169-TEU shortfall, the complainant had to seek carriage from other sources at higher rates, or else forego shipments entirely. The complainant had to spend at least US$1,325,962 more than the contracted prices to ship 169 TEU on the spot market to make up for the respondent's 169-TEU shortfall."