HELLMANN, PELORUS FILE COMPLAINT WITH FMC AGAINST COSCO
Hellmann Worldwide Logistics Inc. and Pelorus Ocean Line Ltd., a non-vessel-operating common carrier, have filed a complaint with the U.S. Federal Maritime Commission against COSCO Container Lines Co. Ltd. for allegedly charging rates differing from those negotiated in a service contract with Pelorus in April 1999.
Pelorus said it booked cargo under the service contract with COSCO, which subsequently invoiced Hellmann, acting as Pelorus' agent, for amounts differing from the service contract's freight rates.
Hellmann and Pelorus contend that COSCO violated section 10(b)(2)(A) of the Shipping Act of 1984 by charging rates differing from those listed in the effective service contract or tariff; section 10 (b)(10) of the act by unreasonably refusing to deal or negotiate and in refusing to return complainants' overpayments; and section 10(d)(1), by engaging in unjust and unreasonable practices with respect to the filing of service contract amendments, collection of freight charges and failure to reimburse freight overpayments.
The two companies are seeking $184,802.80 in reparations from COSCO, in addition to interest, costs and attorneys fees.
The FMC has assigned the proceeding to the office of Administrative Law Judges and an initial decision is expected by Feb. 21, 2003.