Seaboard Marine Violated the Shipping Act, Carrier Says
Shipping company Shiplane Transport said ocean transportation firm Seaboard Marine violated the U.S. shipping regulations when it moved its containers without consent, refused to issue it a bill of lading, engaged in price fixing and solicited customers unfairly, Shiplane said in a complaint filed with the Federal Maritime Commission April 3.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
Shiplane said it contracted with Seaboard Marine to transport three containers of household goods from the U.S. to the Dominican Republic, but the company didn't follow Shiplane's shipping instructions and "adamantly refused" to issue a bill of lading for the bookings. The company accused Seaboard Marine of reassigning Shiplane's containers to another booking "without our consent," which "flagrantly violates our contractual agreement and flouts industry regulations."
Seaboard Marine also was involved in "price fixing practices," the complaint said, including by offering preferential rates and conditions exclusively for "non-licensed movers" for cargo shipments to the D.R. It also entered into agreements with the Dominican Shippers Association to provide "special rates" that are resold by association members to non-licensed, non-vessel operating common carriers for a "nominal fee," Shiplane said. This constitutes price-fixing and anticompetitive behavior in violation of the Shipping Act, the complaint said.
Seaboard Marine also solicited Shiplane's customers by offering lower rates, special free time conditions, and other advantages to contract Seaboard to transport goods from the D.R. to the U.S., the complaint said. This has inflicted "substantial harm" on Shiplane, which said "all previous cargo shipments" they had contracted have since been "diverted" to Seaboard Marine, causing "significant financial losses and undermining our business relationships."
Shiplane Transport is asking the FMC to investigate Seaboard Marine's "unjust practices," to order it to stop its "unjust and unreasonable" conduct toward Shiplane, and to provide it relief in the form of compensation from Seaboard Marine for "economic injury" of $50,000.
Seaboard Marine didn't respond to our request for comment.