YANG MING SETTLES US SHIPPER'S CLAIM THAT CARRIER BROKE ITS CONTRACT

Yang Ming has reached an out of court settlement with a shipper that claimed it was a victim of pandemic-era price manipulation.

 

Yang Ming Photo 53779592 © Philippilosian Dreamstime.com

 

The complaint was lodged with the US Federal Maritime Commission (FMC) by Delaware-based food shipper MSRF last August, alleging the Taiwanese carrier refused to provide the full capacity agreed in service contracts – “instead, forcing MSRF to buy space on the inflated spot market”.

 

It alleged: “[Yang Ming] refused to provide more than a fraction of capacity requested and needed, even though it overall has continued to operate at, or near, pre-pandemic capacity.

 

“[Our] written service contract with [Yang Ming] included minimum quantity commitments to tender cargo from various points in Asia for [Yang Ming] to transport via ocean vessels to the US at agreed intervals and for agreed prices.”

 

“[Yang Ming] then proceeded to engage in a practice of refusing to perform full commitment under the service contract, instead forcing MSRF to buy space on the inflated spot market.”

 

At the time, a container that, pre-pandemic cost approximately $2,700 to ship from China to the US west coast, was being quoted at $25,000 or more and, in the period under scrutiny – May-December 2021 – Yang Ming carried just four of the 100 contracted feu boxes, claimed the shipper.

 

MSRF said as a result of “the carrier’s practice of selling MSRF-contracted space on the spot market”, it had lost in excess of $1m and was seeking “remuneration and damages”.

 

But, following “arms’ length negotiations”, the two parties submitted a joint motion in support of a confidential settlement, which the FMC approved last week.

 

Source: theloadstar.com by Alexander Whiteman


Related News

FRUIT JUICE IMPORTER FILES COMPLAINT OVER HAPAG-LLOYD’S ‘UNFAIR’ D&D CHARGES
FRUIT JUICE IMPORTER FILES COMPLAINT OVER HAPAG-LLOYD’S ‘UNFAIR’ D&D CHARGES

778 Views

Rahal claims that, between April and June 2022, Hapag issued almost $300,000 in detention/demurrage charges for empty containers – an “inconsistent” approach to charging and not compliant with the US Shipping Act.

Ammonia as a marine Fuel
Ammonia as a marine Fuel

2632 Views

Ammonia (NH3) was identified as a zero-carbon fuel that can enter the global market relatively quickly and help meet the GHG reduction target for 2050 set by the International Maritime Organization (IMO). Ammonia offers ship owners and operators a zero-carbon tank-to-wake emissions profile, regardless of the source of the fuel.

Tianjin forced into greater lockdown as Covid-19 cases spread to Shanghai and Dalian
Tianjin forced into greater lockdown as Covid-19 cases spread to Shanghai and Dalian

1923 Views

Cases of Covid-19 are spreading in Tianjin, forcing wider lockdowns, while other Chinese port cities including Dalian and Shanghai reported cases yesterday sparking fears of more supply chain chaos.


Comment
  • Your review
main.add_cart_success