News
The U.S. Federal Maritime Commission (FMC) is set to initiate another investigation into business practices and demurrage charges by a container shipping line.
Ocean Network Express (ONE) sought to recover demurrage, storage and freight charges against Greatway Logistics Group, a Florida-based non-vessel-owning common carrier (NVOCC) for shipments of Pacific Lumber Resources (PLR) from Brazil to Houston. Greatway claimed that it has provided services for PLR as a customs broker or a notify party and thus, had no interest in the cargo as consignee, shipper or beneficial owner whereas ONE pleaded that its bill of lading terms and conditions defined NVOCCs as Merchant which is liable for all charges associated with the B/L.
The FMC said in its notice of investigation that Greatway was not in privity of contract with ONE, did not have a beneficial interest in the cargo moved and did not assent to be bound to ONE’s bill of lading terms and conditions, or to be liable for payment of any charges due to ONE.
ONE has 25 days to file an answer to the Order of Investigation and Hearing.
