Ocean Network Express Didn’t Meet Contract Commitments, Shippers Say
U.S. shippers QVC Inc. and Cornerstone Brands have accused Singapore-based ocean carrier Ocean Network Express (ONE) of failing to meet its minimum quantity commitments under service contracts for the period of May 2021 to April 2022, according to a complaint filed this month with the Federal Maritime Commission.
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QVC Inc. and Cornerstone Brands Inc., which are both subsidiaries of QVC Group, allege that ONE sold their bargained-for cargo space to other shippers at higher rates to maximize its profits. They say ONE’s actions forced them to obtain space at higher rates on the spot market, resulting in "excess costs" totaling nearly $18.2 million.
The companies also claim that ONE forced them to pay extra-contractual prices and surcharges to meet even a portion of its service commitments. They also said they were charged demurrage and detention fees when their ability to pick up containers at ports or return empty containers promptly was constrained due to factors beyond their control, such as port congestion and equipment shortages.
"The damage done to complainants’ businesses as a result of respondent’s misconduct alleged herein was extreme," the complaint says. The shippers asked the FMC to order ONE to pay "reparations for the unlawful conduct."
ONE didn’t respond to a request for comment.