FMC petition questions “character” of Apparel Logistics

FMC petition questions “character” of Apparel Logistics

FMC petition questions “character” of Apparel Logistics

   Crowley Logistics and its subsidiary Apparel Transportation have filed a petition to the U.S. Federal Maritime Commission requesting an investigation into the “character” and intent of newly formed ocean transportation intermediary Apparel Logistics.
   The petition papers allege that Miami-based Apparel Logistics was “secretly incorporated” by Manuel Lescano six days before Crowley Logistics finalized its acquisition of Apparel Transportation on June 24. Lescano was still an officer in Apparel Transportation before the acquisition announcement.
   Furthermore, Leo Del Calvo Sr., the qualifying individual for Apparel Logistics’ OTI license application, is the father of Leo Del Calvo Jr., a manager in Crowley’s Apparel Transportation.
   Apparel Logistics received its OTI license from the FMC Feb. 11, although Crowley Logistics and Apparel Transportation, also based in Miami, submitted comments to the FMC about why it should oppose Apparel Logistics’ OTI license application.
   Crowley Logistics alleges that Apparel Logistics was developed with the “clear intent to deceive” customers of Apparel Transportation, which is a FMC-licensed non-vessel-operating common carrier and freight forwarder focused on the U.S./Central American clothing and textile market. Apparel Transportation’s clients also require specialized services involving shipment, handling, and imports of wearing apparel.
   Crowley Logistics’ petition also cited that Apparel Logistics has already hired several Apparel Transportation employees with valuable account and ocean operations information both in the United States and overseas.
   In addition, the petition said Apparel Logistics recently held an “open house” in Guatemala where Apparel Transportation has a number of customers. “Customers in fact have been confused in their dealings with Apparel Logistics,” the petition said.
   Crowley Logistics pointed out that the Bureau of Customs and Border Protection has refused to grant customs brokers licenses when companies are similarly named.
   Crowley Logistics asked the FMC to take action against Apparel Logistics by revoking or suspending its OTI license and investigate the issues about NVO background checks before issuing licenses.