DOJ CLEARS BILLING, COLLECTION AGENT FOR U.S./PUERTO RICO CARRIERS
The U.S. Department of Justice said it would not challenge a proposal by five U.S. ocean carriers plying the U.S./Puerto Rico trade to establish a common billing and collection company.
Transportation Services Inc., now has the authority to act on behalf CSX Lines, Crowley Liner Services Inc., Navieras NPR Inc., Trailer Bridge Inc. and Sea Star Line LLC. The lines' proposed cooperation is a change of pace in what has historically been a highly competitive and contentious trade.
TSI said the carriers are having problems collecting money owed to them for detention and demurrage charges.
TSI and the carriers also believe many shippers and consignees who default on the payments try to obtain services from other ocean carriers without first paying the pre-existing charges, the Justice Department said.
TSI will publish the names of customers who fail to pay their debts, including the amount of the delinquency and the number of days payments are past due.
TSI will make the delinquent list available to the carriers, allowing each of them to develop and implement their own credit and collection policies.