Crowley reaches Puerto Rico agreement

Crowley reaches Puerto Rico agreement    Crowley Liner Services Inc. said Friday it has entered into a settlement agreement today with shippers moving cargo between the U.S. mainland and Puerto Rico.
   Shippers filed claims against Crowley and other Jones Act carriers in the Puerto Rico trade claiming price fixing after the government launched an antitrust investigation against several carriers participating in the trade.
   Horizon Lines and Sea Star Line executives in May were fined and given prison sentences for what the U.S. Justice Department described as an antitrust conspiracy. Crowley executives have not been charged.
   But in the wake of the government case, class action suits were filed against all the carriers in the trade on behalf of shippers who purchased domestic ocean services on the Puerto Rico trade lane between 2002 and 2008.
   Crowley said while it “specifically denied violating the antitrust laws, it agreed to the settlement given the high cost and burden of litigation, which is expected to continue for several more years.” It noted the complaints allege violations of U.S. and Puerto Rican antitrust laws and seek treble damages.
   Horizon entered into a similar agreement to settle claims last June.
   “This was a business decision to put the matter behind us as quickly as possible,” said Michael Roberts, Crowley senior vice president and general counsel. “We simply felt that it was in the best interests of our company, and our customers, to move beyond this dispute.”
   Crowley said the litigation has had an adverse affect on “managing the business in this very challenging economic climate, as well as on making strategic investments to improve services to customers in the trade.”
   Court approval of the settlement will be sought within the next several days, Crowley said. Following preliminary approval by the court, notice forms will be sent to all shippers. Final court approval will be required after the forms have been received, it added. ' Chris Dupin