Apparel Logistics rebuffs Crowley Logistics’ petition to FMC

Apparel Logistics rebuffs Crowley Logistics’ petition to FMC    Apparel Logistics referred to a petition recently filed by Crowley Logistics and its subsidiary Apparel Transportation to the U.S. Federal Maritime Commission as an attempt to “thwart competition in the open marketplace,” and should be dismissed by the agency.
   In late February, Crowley Logistics’ petition alleged that Apparel Logistics was “secretly incorporated” by former Apparel Transportation executive Manuel Lescano six days before it bought Apparel Transportation on June 24, 2003.
   Crowley Logistics also alleged the intent of Apparel Logistics was to deceive Apparel Transportation customers. In addition, Crowley Logistics said Apparel Logistics hired away some Apparel Transportation employees.
   Crowley Logistics asked the FMC in its petition to revoke Apparel Logistics’ ocean transportation intermediary license and conduct an investigation into the Miami-based company’s “character” and intent.
   “Upon careful review, it becomes apparent that Crowley’s real ‘concerns’ are not about ‘integrity and character,’ but instead are concerns about having to face competition in the transportation industry,” Apparel Logistics said in comments filed to the FMC this week. “Crowley knows that (Apparel) Logistics is a start-up company and hopes to crush such company under the weight of legal fees and harassment.”
   Apparel Logistics, which received its OTI license from the FMC on Feb. 13, denied hiring away employees from Apparel Transportation, and if so, the company said that shouldn’t matter.
   “If Crowley were to have its way, none of its former employees could work for a competitor,” Apparel Logistics said. “Such a result cannot be proper because its adverse effect on competition in the marketplace.”
   In addition, Apparel Logistics criticized Crowley Logistics’ allegation that its name is deceptive to Apparel Transportation’s shippers. Apparel Logistics pointed out that there are several businesses in South Florida with “Apparel” as the first word in their names.
   “Has Crowley filed suit against such entities? Has Crowley taken action to deny any licenses to such entities? Of course not, as Crowley does not have an ax to grind against a former employee as in the case here,” Apparel Logistics said.
   Apparel Logistics pointed out in its comments that in addition to the FMC petition, Crowley Logistics attempted to block the creation of the company through litigation in the Florida courts. Apparel Logistics said this approach “smacks of illegal antitrust violations.”