A German-based international shipping and container operation faces another lawsuit after a Long Beach trucking outfit claimed it’s owed upwards of $258,000 in detention fees.
Hapag-Lloyd, a more than 50-year-old transportation organization based in Hamburg, Germany, generates annual revenue that exceeds $14.5 billion and possesses assets valued at upwards of $18.6 billion. A complaint filed by Orange Avenue Express (OAE) with the Federal Maritime Commission (FMC) indicates Hapag-Lloyd crafted a policy tasking trucking outfits with filing daily reports as West Coast ports were overwhelmed. In August, Orange Avenue Express routinely attempted to set logistics appointments to return empty containers. Those efforts were often rebuffed, forcing the California company to store containers at its own expense.
“When Hapag was notified that no appointments were available, Hapag would reply that it had no control over the terminal appointment system,” the civil lawsuit reportedly states. “Further, after repeated requests, Hapag failed to provide an overall solution to the daily refusal to accept empty reefer container returns or lack of appointments.”
In an effort to unburden itself of piling up empty containers, Orange Avenue Express reportedly attempted to negotiate a solution. The freight hauler would leverage dual-gate appointments and drop off empties when picking up from the terminal. That solution fell on deaf airs, according to the complaint.
“Since the full containers were originally pulled as overweight containers on specialized tri-axle chassis, many empties remained on the specialized OAE-owned chassis for lengthy periods of time,” Orange Avenue Express reportedly stated. “Instead of adequately allowing for opportunities to return empty reefer containers, Hapag involuntarily forced OAE to act as a storage facility for Hapag empty containers without compensation.”
In July, Hapag-Lloyd and eight other large carriers were the subjects of FMC scrutiny. After the “Vessel-Operating Common Carrier Audit Program” was launched at the behest of FMC Chairman Daniel B. Maffei, an audit of leading carriers was triggered. Hapag-Lloyd became the subject of a detention and demurrage probe as the White House issued an executive order to protect U.S. companies from “unjust and unreasonable fees.”
In April, the International Longshoremen’s Association filed civil litigation against Hapag-Lloyd and the United States Maritime Alliance in Newark, N.J., Superior Court. A scathing complaint alleges “liable for tortious interference with a contractual relationship, tortious interference with advantageous business advantage, breach of contract, and civil conspiracy,” according to reports. The Longshoremen’s Association sought damages of “$200,000,000 from both defendants individually or jointly.”
To say the German-based organization has been the focus of controversy in 2021 would be something of an understatement. The Orange Avenue Express complaint claims the international outfit charged excessive detention fees of $400 per day to enrich itself in a fashion that violates U.S. law. These empty containers were often stored at American trucking company yards because Hapag-Lloyd impeded their timely return, according to reports.
Sources: freightwaves.com, joc.com
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