US company MCS Industries has filed a complaint with the Federal Maritime Commission (FMC) against global container lines for violation of their contractual obligations.
More specifically, MCS filed a $600,000 lawsuit on 28 July 2021 claiming violations of the 1984 US Shipping Act. Namely, MCS claims that container lines have “unjustly and unreasonably” exploited customers, including two major shipping lines COSCO and MSC.
International steamship lines have been operating in tandem to exploit the Covid-19 disruption to profiteer at the expense of U.S. consumers. They have used the relative unavailability of services to create a frothing demand to exact exorbitant prices for their services
Richard Master, CEO of MCS Industries, stated.
What is more, the carrier lines have allegedly ignored their contractual obligations, as they refused to provide agreed-upon container space so as to take extortionate profits on market.
Therefore, container rates that in 2019 and 2020 that were $2,700 from China ports to the U.S. had grown above $15,000.00 in July 2021.
Furthermore, from May 2020 through April 2021, shippers were forced into the spot market for 50% or more of their previously contracted requirements.
