NVO CHARGES COSCO CONTAINER LINES WITH SHIPPING-ACT VIOLATIONS
Cargo One Inc., a Great Neck, N.Y.-based non-vessel-operating common
carrier, has charged China Ocean Container Lines Co. Ltd. with several violations of the
1984 Shipping Act for allegedly not living up to the terms of a service contract signed by
the parties in January.
In a complaint filed with the Federal Maritime Commission, Cargo One’s
attorney Carlos Rodriguez said the Chinese carrier failed to live up to a service contract
by refusing to carry shipments at contract rates from Feb. 4 to April 30.
Rodriguez said the service contract called for the NVO to tender a
minimum of 250 FEUs, but Cargo One was successful in having only 6.5 FEUs moved by COSCO
at service contract rates.
Cargo One said COSCO’s shipping agents in Jakarta, Hong Kong, Manila, Cebu,
Surabaya, Indonesia and in India "consistently rejected" Cargo One’s agents’
efforts to book the cargo.
The NVO told the FMC that one reason COSCO gave for not accepting the cargo
was that space was not available because it had been allocated to larger shippers.
Rodriguez said that, because Cargo One was prevented from shipping its
250-TEU minimum, the service contract gave the NVO the options of either having the
contract reduced by the number of containers not accommodated or to be paid for every
shipment not accommodated.
Cargo One is seeking $121,750 from the carrier.
An initial decision must be handed down by Nov. 20, 2000 and the
deadline for a final FMC decision is March 20, 2001.