After the FMC announced the results of the investigation
, another shipper complained about shipping companies manipulating freight rates
According to One Shipping, an Illinois shipper is suing Taiwanese shipping company Yang Ming Shipping and South Korean shipping company HMM, claiming that they have never fulfilled their contractual obligations. And collude together to make huge profits!
Shipper accuses Yang Ming and HMM of collusion and profiteering
The two carriers have benefited approximately $2.2 million so far, the shipper said in the claim, as the two companies continue to benefit from shipper The amount is growing from what MSRF Inc considers to be illegal conduct.
The statement of claim amounted to a direct refutation of the US Federal Maritime Commission’s (FMC) two-year Fact Finding 29 investigation by Commissioner Rebecca Dye, which found “no evidence of collusion between shipping lines.”
MSRF filed a complaint with FMC on June 8, saying that it had reached a contract with the two shipping companies for the 2021 shipping year. Yang Ming provided them with 100 Feu services and HMM provided 25 Feu, but in fact Yang Ming only provided The contracted service amounted to 4%, and HMM only shipped the company's nine boxes.
The shipper claims it is forced to find carriers for its cargo in the spot market or not ship the cargo at all.
Additionally, the company claims that both Yang Ming and HMM committed breach of contract by “reselling capacity that should have been allocated to MSRF in the spot market to other shippers at prices significantly higher than agreed in HMM and Yang Ming’s service contracts.” ”
Additionally, MSRF claims that after entering into contracts with Yang Ming and HMM, the carriers changed their practices in a “parallel and seemingly coordinated manner,” depriving MSRF of The space agreed upon in the contract.
In evidence to the FMC, MSRF claimed shipping lines including Yang Ming and HMM had undermined a previously "stable and well-established" market structure that provided reliable service contracts ahead of the booking process.
As a result, MSRF claims that it is now forced to "agree in advance that global ocean carriers are willing to cover any portion of their required capacity through service contracts, making up the shortfall in the spot market, and then whenever the respondents refuse to honor their limited service commitments to When pursuing greater huge profits, they flooded into the spot market again.”
MSRF said carriers have been allowed to organize themselves into "colluding alliances," which gives them the opportunity to "exploit their alliance status at the expense of shippers."
It added that carriers within the alliance were continuing to exploit shippers, including MSRF, which has resulted in historically high profits for shipping lines.
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