Carrier Seeks Reparations From Amazon After Early End to Service Contract
Ocean carrier China United Lines alleges it is owed $96.4 million in reparations from Amazon because the Seattle-based shipper failed to honor a transportation service contract the parties agreed to in 2022, according to a complaint filed this month with the Federal Maritime Commission.
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Amazon terminated the two-year contract a year early, initially saying the reason was “for convenience” and that it would pay China United damages as required by the contract, the 22-page complaint says. But Amazon allegedly revised its reason for the contract termination to “for cause” to try to avoid paying damages, China United contends.
To back up its “for cause” position, Amazon said that China United violated a confidentiality agreement by disclosing their business relationship on a social media application, the complaint says. However, China United countered that the information it posted was no different than what Amazon posted on the same app, placing it in the public domain.
Amazon had no immediate comment on the complaint.