Trucking Group Seeks $1.8 BILLION From Foreign-Owned Shipping Lines in Chassis Dispute
Washington D.C. – The American Trucking Associations’ Intermodal Motor Carrier Conference (IMCC) is seeking $1.8 billion from foreign-owned ocean shipping lines it says is in violation of the Shipping Act of 1984.
The IMCC filed suit with the Federal Maritime Commission (FMC) this week, alleging the Ocean Carrier Equipment Management Association Inc. (OCEMA) and 11 ocean carriers (including Maersk, Hapag-Lloyd, and Wan Hai) are “engaged in unjust and unreasonable conduct.”
The 43-page complaint reads, “Based upon first-hand industry knowledge and expertise and upon information and belief as to all other matters—OCEMA, its members, and participating nonmembers have adopted and imposed unjust and unreasonable regulations and engaged in unjust and unreasonable practices by requiring the use of OCEMA member default chassis providers, and denying motor carriers their right to select the chassis provider for merchant haulage movements.”
Further, IMCC’s complaint asserts, “Ocean carrier respondents have caused motor carriers, their shipping and receiving customers, and ultimately the consuming public, to be overcharged in an amount that IMCC estimates to be as much as $1.8 billion during the three years prior to the filing of this Complaint.”
IMCC sent a Cease and Desist letter to OCEMA and to the ocean carriers in May, but IMCC says OCEMA “failed to address the violations that were raised.”
The IMCC also outlined numerous alleged ongoing violations of the Shipping Act and is seeking injunctive relief against OCEMA and the shipping lines.
“For more than a decade, these foreign-owned companies have worked together to take advantage of hard-working American trucking companies,” said Bill Sullivan, ATA’s executive vice president for advocacy. “By denying truckers choice of equipment providers at port and inland locations, these unscrupulous companies have been forcing American truckers and American consumers to subsidize their costs to the tune of nearly $1.8 billion—over the last three years alone.”
In addition to asking the FMC to order a series of cease and desist measures, the complaint also seeks damages of up to $1.8 billion to resolve alleged overcharges for chassis use.
TransportationNation.com will continue to follow the case.