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MSC ‘shocked’ by shipper complaint, rejects carrier collusion claims

As reported earlier this week, American furniture manufacturer MCS Industries has filed a $600,000 lawsuit with the Federal Maritime Commission (FMC) against Cosco and MSC Mediterranean Shipping Company, claiming that they have repeatedly contravened terms of the US Shipping Act. MCS said the carriers had “unjustly and unreasonably” exploited customers, and had colluded to manipulate the market.

Geneva-based MSC, the world’s second largest carrier, issued a press release yesterday to respond publicly to the claim. The carrier said it “is shocked to learn of the accusations made by MCS,” and emphasized that it had “received no formal complaint by MCS Industries in advance of the filing.” About “subsequent accusations made [by MCS] in the media,” MSC said they are “vague and unsubstantiated and are incorrectly targeted at MSC.”

MSC “does not recognise the alleged shortcomings in booking the cargo allocations provided for this shipper. Furthermore, MSC is not illegitimately selling space allotted to MCS Industries under its service contracts to other shippers.”

The carrier also said it “rejects the accusation of collusion between carriers put forward in the complaint.”

Cosco, the other carrier cited by MCS, has yet to respond publicly to the accusations.

Kim Biggar

Kim Biggar started writing in the supply chain sector in 2000, when she joined the Canadian Association of Supply Chain & Logistics Management. In 2004/2005, she was project manager for the Government of Canada-funded Canadian Logistics Skills Committee, which led to her 13-year role as communications manager of the Canadian Supply Chain Sector Council. A longtime freelance writer, Kim has contributed to publications including The Forwarder, 3PL Americas, The Shipper Advocate and Supply Chain Canada.

Comments

  1. Why isn’t American furniture manufacturer MCS Industries manufacturing furniture in the USA? Isn’t that what good citizens do, rather than taking advantage of cheap foreign labour and then bleating about transport costs.
    “MCS is committed to being a good global citizen. We recognize our responsibility to the people making and using our products and for the effects our products and processes have on the environment. With this understanding, we aspire to:
    The highest moral and ethical standards
    The greatest value in the desirability and safety of our products
    The principles of sustainability in our production, procurement and waste streams”
    What a load of PR garbage.

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