Fruit juice importer and broker Rahal International has filed a complaint with the US Federal Maritime Commission (FMC) against Germany’s Hapag-Lloyd over unreasonable charging practices, adding to an abundance of grievances filed versus ocean carriers.
Lawyers for Rahal argue that between April and June 2022, Hapag-Lloyd created logistical paralysis at the port of New York and New Jersey and “wrongfully and unreasonably” charged Rahal $298,911 for detention/demurrage for containers unremovable from the port while it was unwilling and/or able to handle the return of its empty containers.
The actions not compliant with the US Shipping Act led to Rahal sustaining actual injuries and damages of at least $715,631, the company said. Rahal noted that in addition to “unreasonable” charges it incurred $154,909 in further haulage fees and $63,013 for extra expenses, as well as a $198,798 loss for spoiled fruit products.
The importer alleged that the German liner had also, at least one year before the events complained of, failed to provide adequate facilities at and about the port for its customers to return empty containers, but that it still continued to accept business. “As a result of Hapag’s failure to establish reasonable practices regarding return of empty containers, Hapag had a backlog of empty containers building up in and about the port.”
Since the beginning of 2022, the FMC has been dealing with a flood of complaints filed by shippers against ocean carriers. The allegations often allege that ocean carriers violated the Shipping Act of 1984 by failing to honor long-term contract prices and instead providing space on containerships to other parties at substantially higher rates, as well as charging unjustified demurrage fees.
In June 2022, Hapag paid $2m in civil penalties to resolve allegations in how it assessed detention charges. Earlier this year, retailer Bed Bath & Beyond claimed over $30m from Hong Kong’s Orient Overseas Container Line (OOCL) over exploitative and unjust business practices during the pandemic. The most recent case saw the FMC slap Maersk’s Hamburg Süd with a nearly $10m fine for refusing to contract cargo space for its containers with Florida-based furniture importer OJ Commerce.
