Things are getting testy between a Pennsylvania furniture manufacturer and Mediterranean Shipping Co in legal proceedings before US shipping regulators.
Attorneys for MCS Industries allege the container ship giant moved to dismiss its complaint, filed with the Federal Maritime Commission (FMC), on 23 December, just hours after receiving an unsigned copy of an amended complaint that MCS Industries intended to file.
The company further alleges that MSC is dodging an order from FMC administrative law judge Erin Wirth to produce documents in the proceedings.
"As of this writing, [MSC] has not yet produced any documents, communications,
information or interrogatory responses pursuant to the [order]," MCS Industries wrote in a joint status report filed on Monday.
In its response, MSC argued that it is working through the Swiss legal system, which has statutes potentially blocking discovery in foreign legal proceedings, and that MCS Industries attorneys said they understood those issues.
The world's largest boxship owner also said MCS Industries sought to significantly expand its allegations.
MCS Industries first filed a complaint with the FMC last July, shortly after the US government took a more active approach to perceived monopolisation in container shipping.
Its first complaint included MSC and Cosco Shipping Lines, before it settled with Cosco in September on undisclosed terms.
MCS Industries accuses MSC of entering into a contract last May, before delivering just 35% of the agreed capacity and kicking the manufacturer into the "substantially — often outrageously" more expensive spot market to make up the difference.
It said MSC even issued a booking confirmation and provided vessel information for one cargo, before refusing to book the space.
MCS Industries said its damages totalled more than $600,000.
In its motion to dismiss, MSC argued that most of MCS Industries' claims amount to little more than breach of contract claims, and that in other places the furniture manufacturer failed to state a claim.
In a statement to TradeWinds, MSC said it had looked into the matter and that it was the fault of "errors and communication issues" between MCS Industries and third parties, and that if MSC were at fault, it would have resolved the matter by now.
"MCS Industries has publicised and protracted what we believe to be a baseless complaint that is not a good illustration of the many genuine concerns of carriers, shippers, ports and other actors, all of which are grappling with the challenging Covid-induced market disruptions we all face," the carrier said.
The FMC has a formal complaint process for US shippers to settle disputes with carriers over alleged violations of federal law.
Liners have come under new scrutiny after President Joe Biden signed an executive order on 8 July on competitiveness in the US economy.
The order included only a few lines on shipping, instructing the FMC to ensure that liners are charging reasonable detention and demurrage.
But the FMC also linked with the Department of Justice's antitrust division and has sought greater investigative and enforcement powers.
Commission members argue that US exporters have complained about the liners' behaviour, but have been slow to file complaints, fearing retaliation.
The FMC has begun probing Wan Hai Lines' and Ocean Network Express (ONE)'s practices.
Wan Hai allegedly failed to give container return instructions to shippers, while charging fees. ONE allegedly improperly included terms in its contracts assigning liability to those simply arranging shipments.
