FMC Dismisses Claim That Firm Was Overcharged to Ship Excavator
A Federal Maritime Commission small claims officer on Aug. 7 dismissed a complaint against New Jersey-based Citi Freight Logistics (CFI) and Best International Cargo (BIC) of Canada, saying HP Logistics (HPL) failed to show that the firms engaged in unfair charging practices for dismantling and shipping an excavator from Tennessee to Vietnam.
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HPL, a freight forwarder based in Vietnam, had sought $25,895 in reparations, saying CFI and BIC overcharged it by $23,600 and caused it to incur $2,295 in demurrage and detention charges. But the FMC officer sided with CFI and BIC, which said they told HPL in advance that a price increase would be possible if new information about the excavator became available.
CFI and BIC said they experienced unexpected costs, including having to ship additional parts and clean the “extremely dirty” excavator. They said the demurrage charges were imposed by another company due to HPL’s delay in making the final payment for the shipment.
The FMC officer said the dispute might have been avoided had the parties been less “vague” in their communications and set “clearer and more definite terms” for their arrangement.
HPL, CFI and BIC didn’t immediately respond to requests for comment on the decision.