FMC DROPS INLET FISH/SEA-LAND COMPLAINT
The U.S. Federal Maritime Commission has agreed to drop its review of a complaint filed by Inlet Fish Producers Inc. against Sea-Land Service (known now as A.P. Moller Maersk Sealand) after the two parties agreed to confidentially settle their dispute.
In its complaint, Alaska-based Inlet Fish alleged that Sea-Land had transported its seafood products from Alaska to foreign destinations from June to August 1996, and that at some point during that time the carrier moved identical or similar products to similar points.
Inlet Fish contended that Sea-Land allowed “similarly situated” shippers to subtract the weight of packaging and wrapping (“tare weight”) from the weight of their cargo for the purpose of determining freight rates, but that Inlet Fish was not allowed to do the same. Inlet Fish said this resulted in it paying higher freight charges than its competitors, violating the Shipping Act.
Inlet Fish filed a complaint to the FMC against Maersk Sealand on Jan. 21, 2000. The company sought reparation of $35,091.25 plus interests, costs, attorney’s fees and an order commanding Maersk Sealand to “establish and enforce lawful and reasonable practices.”
Maersk Sealand filed a motion to dismiss the complaint, arguing that Inlet Fish’s complaint was more than three and half years old, six months beyond the three-year statute of limitations.
Administrative Law Judge Frederick M. Dolan Jr. denied Maersk Sealand’s motion, ruling that Inlet Fish did not learn about the violation until 1998. Maersk Sealand appealed the ALJ’s order, but the FMC rejected the carrier’s appeal.
The FMC said its “(confidential settlement) agreement is not, and is not to be construed as, an admission by A.P. Moller Maersk Sealand of any liability or violation of the Shipping Act of 1984, or an admission or acceptance of any of the underlying allegations set forth in Inlet Fish Producer Inc.’s complaint and filings.”