TAIWAN's container carrier Yang Ming has agreed to settle a complaint filed with the Federal Maritime Commission (FMC) by a New York importer alleging the carrier failed to honour capacity commitments that resulted in more than US$1.3 million in additional costs for the shipper.
Terms of the settlement, filed with the FMC this week, were not disclosed. The initial complaint was submitted to the agency in March.
A spokesperson for Taiwan-based Yang Ming was not immediately available, reports IHS Media.
Achim Importing Company said it signed a one-year contract with Yang Ming in May 2020 for 200 TEU of capacity. But only 31 TEU was made available within the contracted time, according to the complaint, causing Achim to spend just over $1.3 million on the spot market to make up for the capacity shortfall.
It is the second FMC complaint filed against Yang Ming this year, although both were submitted prior to President Joe Biden signing the Ocean Shipping Reform Act of 2022 into law on June 16.
On May 31, MSRF, a manufacturer and importer of gourmet food and gifts, filed a complaint against Yang Ming, also alleging the carrier violated its contract by failing to provide the agreed capacity.
Under OSRA-22, the FMC has until November to deliver rulemaking clarifying when it is "unreasonable" for ocean carriers to refuse to serve shippers.
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