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Hamburg Sud hit with US$9.8 million FMC fine in retaliation case
来源：shippingazette 编辑：编辑部 发布：2023/06/19 16:33:48
MAERSK unit, Hamburg Sud, has been ordered to pay US$9.8 million to an e-commerce home goods retailer for refusing to fulfill a shipping contract in retaliation for an earlier complaint it filed against the carrier, reports New York's Journal of Commerce.
Administrative law judge Erin Wirth also found Hamburg Sud refused to engage in new negotiations with the complainant because of potential litigation risks.
This the biggest fine levied by the Federal Maritime Commission (FMC) a since the Ocean Shipping Reform Act of 2022 was enacted a year ago.
Said Maersk: "We are reviewing the decision and considering next steps."
Said Judge Wirth: "Long-standing Commission precedent prohibits common carriers from shutting out any person for reasons that have no relation to legitimate transportation-related factors and from retaliating against shippers."
Plaintiff OJ Commerce (OJC), a Florida-based importer of home goods, filed its initial complaint against Hamburg Sud in November 2021 for improperly billed demurrage fees totaling $40,680 for 15 containers.
While the carrier refunded the full amount of the charges, the case morphed into claims of refusal to deal and retaliation after Hamburg Sud allegedly failed fulfill the remaining minimum quantity commitment in OJC's 2020-21 contract and the retailer threatened new legal action.
The carrier then allegedly further refused to renew or negotiate a new contract with the retailer for 2021-22, making it too late for OJC to procure a contract with another carrier, the FMC order said.
While OJC sought $100 million in relief, Judge Wirth took into account the 15 containers and calculated damages for the lost 2021-22 contract based on trade routes and volume, resulting in a total actual injury of $4.6 million. But then she more than doubled the amount to $9.8 million after ruling that "the violation was knowing and willful."
Administrative law judge Erin Wirth also found Hamburg Sud refused to engage in new negotiations with the complainant because of potential litigation risks.
This the biggest fine levied by the Federal Maritime Commission (FMC) a since the Ocean Shipping Reform Act of 2022 was enacted a year ago.
Said Maersk: "We are reviewing the decision and considering next steps."
Said Judge Wirth: "Long-standing Commission precedent prohibits common carriers from shutting out any person for reasons that have no relation to legitimate transportation-related factors and from retaliating against shippers."
Plaintiff OJ Commerce (OJC), a Florida-based importer of home goods, filed its initial complaint against Hamburg Sud in November 2021 for improperly billed demurrage fees totaling $40,680 for 15 containers.
While the carrier refunded the full amount of the charges, the case morphed into claims of refusal to deal and retaliation after Hamburg Sud allegedly failed fulfill the remaining minimum quantity commitment in OJC's 2020-21 contract and the retailer threatened new legal action.
The carrier then allegedly further refused to renew or negotiate a new contract with the retailer for 2021-22, making it too late for OJC to procure a contract with another carrier, the FMC order said.
While OJC sought $100 million in relief, Judge Wirth took into account the 15 containers and calculated damages for the lost 2021-22 contract based on trade routes and volume, resulting in a total actual injury of $4.6 million. But then she more than doubled the amount to $9.8 million after ruling that "the violation was knowing and willful."