MSC Faces Another Complaint for Shipping Act Violations

Legal Complaint Against MSC

A shipper formerly known as Bed Bath & Beyond Inc. (now known as 20230930-DK-Butterfly-1, Inc.), has filed a complaint with the Federal Maritime Commission (FMC) against MSC Mediterranean Shipping Company SA (MSC).

The complaint alleges that MSC, one of the world's largest container lines, violated the Shipping Act of 1984, resulting in financial harm to the complainant amid the COVID-19 pandemic.

MSC, a key member of the "2M alliance" alongside Maersk, stands accused of capitalizing on the price inflation within the container shipping industry during the unprecedented challenges brought by the pandemic. This alleged profiteering, as outlined in the complaint, purportedly burdened shippers like the Complainant with escalated freight costs, eventually forcing Complainant into a Chapter 11 bankruptcy filing in April 2023.

One of the allegations raised by the shipper is that MSC failed to honor service commitments specified in their service contracts and reallocated space to higher-paying cargo, which forced Bed Bath & Beyond to resort to expensive spot market alternatives.

The complaint maintains that MSC's actions were deliberate and not due to operational constraints. It underscores MSC's reported significant profits, an acquisition spree during the pandemic, and substantial cash reserves, hinting at substantial financial gains for MSC during the crisis.

The filing seeks reparations for the damages allegedly incurred by MSC's violations of the Shipping Act.

AP Tariffs Inc. is a tariff publisher that serves both non-vessel operating common carriers (NVOCCs) and vessel operating common carriers (VOCCs). AP Tariffs' experts also provide legal consultation particularly in maintaining compliance with FMC regulations.

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AP Tariffs Empowers Industry Professionals in Mastering FMC Detention, Demurrage and NVOCC Liability

Atlantic Pacific Tariffs Inc. (AP Tariffs) reports a successful discussion with professionals in the shipping and logistics industry on the much talked about issues on FMC Detention, Demurrage, and NVOCC Liability. The event took place on October 11, 2023, at the MDC Wolfson Campus BIT Center in Miami, Florida. A highlight of the event was the presentation of Gary Kardian, a seasoned veteran with an impressive 48-year career in the ocean shipping industry. Mr. Kardian recently retired from the Federal Maritime Commission (FMC) and brought his extensive expertise to the discussion. Mr. Kardian's presentation offered attendees a comprehensive understanding of the intricacies of Demurrage, addressing the essential dos and don'ts in navigating this challenging terrain. His vast experience in the industry made him an invaluable resource for the participants. Attendees also had the opportunity to learn about the FMC's Charge Complaint process, which empowers NVOCCs to effectively resolve disputes while gaining clarity on their liabilities and responsibilities. The event was a collaborative effort with the Florida Customs Brokers and Forwarders Association and was hosted by the Miguel B. Fernandez Family School of Global Business, Trade & Transportation of Miami-Dade College. AP Tariffs Inc. remains dedicated to helping NVOCCs proactively address compliance challenges, mitigate risks, and safeguard their financial stability. For those who missed this event but are interested in connecting with AP Tariffs, please feel free to reach out by emailing info@aptariffs.com or schedule a free 15-minute meeting here.

AP Tariffs to Discuss Foreign OTI Registration in November

Atlantic Pacific Tariffs Inc. (AP Tariffs), in partnership with World Insurance Agency, will be presenting at a two-day webinar in November 2023, focused on how foreign companies can register as Ocean Transportation Intermediary (OTI) with the U.S. Federal Maritime Commission (FMC).

Foreign OTIs can operate in the U.S. as long as they are registered but this process can be a confusing and time-consuming task for those unfamiliar with the ins and outs of the FMC-65 application procedure.

Mauricio Larenas, president of AP Tariffs, will be speaking to WCA World Academy Members as he delves deep into the nitty-gritty of obtaining OTI registration for foreign companies, such as what documents are needed, how long the application process will take, how much will it cost, etc.

The webinars are scheduled 10AM EST on Wednesday, Nov. 1, and 10AM BKK on Thursday, Nov. 2. Registration is free for WCA World Academy Members. It will be hosted by Greg J Kritz of World Insurance Agency and Mauricio Larenas of AP Tariffs.

AP Tariffs as the 5th largest tariff publisher for NVOCCs in the United States has a wealth of experience helping foreign companies gain global credibility through FMC registration. Mr. Larenas is an an FMC Legal Practitioner and an active member of the Florida Customs Brokers & Forwarders Association (FCBF) education committee.

If you plan to do business in the United States as a foreign non-vessel operating common carrier (NVOCC), AP Tariffs is your best partner! From initial registration to publishing your tariff to staying compliant with the FMC regulations, AP Tariffs will guide you every step of the way.

To know more about AP Tariffs' services, email us today at info@aptariffs.com or schedule a free 15-minute meeting here.