News / Megaship Operator Denies Collision Accusations

Megaship Operator Denies Collision Accusations

19 February 2022 - by - in Industry News
ship carrying cargo

ship carrying cargo

During the late summer of 2021, a Swiss-Italian international container ship called the MSC Mediterranean Shipping Co. was accused of collusion and violating US maritime law. Easton, Pennsylvania-based MCS Industries filed a complaint with the Federal Maritime Commission stating that the MSC violated container contracts with an American-based home furnishing manufacturer.  

Megaship Operator Denies Collusion Accusations

The Mediterranean Shipping Co. was established in 1970 and generated a revenue of roughly $28.19 billion per year. With over 560 vessels, MSC has become one of the world leaders in global container shipping. 

MSC megaship was “shocked” to hear about the accusations and denied any wrongdoing. The claim specified that the MSC went back on their container contract regarding vessel space. This forced MCS, as well as other vessels into the spot market, which were allegedly falsely increased by the carriers. 

Some wonder if this situation is being blown out of proportion and exploited by the media. MSC released a statement after the allegations surfaced stating, “While MSC is still studying some of the contents of this particular complaint, the company does not recognize the alleged shortcomings in booking the cargo allocations provided for this shipper. Furthermore, MSC is not illegitimately selling space allotted to MCS Industries under its service contracts to other shippers.”

How Will The Allegations Move Forward?

Richard Master, who is the President and CEO of MCS, said that his operations staff had attempted to inform MSC of the misconduct and remind them of their contracts. Master, who believes there is additional misconduct taking place at the ports, believes that the Chinese manufacturers and shippers are not only getting more space but receiving it at significantly lower rates. He hopes that the FMC will consider investigating the concerns and establish equality amongst the companies.  

MSC continues to deny accusations of collusion between carriers. The carrier did release the following statements: “MSC and the shipping line COSCO are not in the same container-carrying alliance and as such have no operational cooperation by way of [a] vessel-sharing agreement (VSA) or slot charter agreement (SCA) anywhere in the world. MSC continues to make great efforts to provide its customers with continued service during extraordinary market conditions and will engage through appropriate channels and official processes, as required, with a view to refuting baseless claims and providing accurate sets of facts. MSC is also reviewing whether, when viewed against the true facts, any of the allegations amount to defamation.”

The attorney for MCS, Matthew Reynolds, believes this is just a small piece of a bigger picture. The complaint filed with the FMC only alleges wrongdoings under federal shipping laws. He stated, “That said; however, I think it is absolutely possible that there’s potential for antitrust or competition issues here. Anyone looking at the allegations made by MCS, combined with recent actions by Congress and federal regulators and the complaints of shippers widely reported in the media, could easily ask whether there is some sort of improper collusion occurring among carriers.”

What Does This Mean For You and How Trifecta Can Help?

Regardless of the issues going on at the port, Trifecta Transport ensures the fair pricing and treatment of all clients. If you are in need of time-critical shipping, we are here to help you with all the logistics. At Trifecta Transport, our team of highly trained experts assist you on your time through every step of the process. We make sure your delivery saves resources and time. We do all the running around for you, contacting various carriers to get the best rates and quickest deliveries. We go above and beyond to provide exceptional service to all our clients. Whether your needs include air freight, intermodal rail, or freight transport, we can help you.

Contact Us Today 

If you are overwhelmed with all the hassle and headache, we are here to offer you a solution to your problems. Our team at Trifecta Transport eases your stress and helps take your company to the next level by streamlining your logistics. Give us a call today for a quote on your shipping solutions.