Chilean Fruit Exporters File Lawsuit Against Mediterranean Shipping Company for Systematic Abuses
Key Highlights :
Chilean fruit exporters have filed a lawsuit before the Court of Defense of Free Competition (TDLC) against the Mediterranean Shipping Company (MSC), the world's largest shipping company, for alleged systematic abuses. The 23 Chilean fruit exporting companies have accused MSC of deliberately delaying shipments and applying extra charges resulting in losses of US$ 38 million during the 2021-2022 export season.
The lawsuit details practices such as deliberate cargo delays and unjustified charges, which affected 994 containers on more than 20 different routes, representing some 16,000 tons of fruit. The products affected by these alleged practices include blueberries, apples, pears, grapes, and citrus fruits.
The fruit growers claim that they booked their cargo slots months in advance of the export season, but once maritime rates began to rise due to the Covid-19 pandemic restrictions, the shipping company decided to prioritize other routes, thus setting aside previous engagements.
The lawyers representing the Chilean companies also accuse MSC of charging the fruit companies for over-stays in the ports of destination (congestion surcharges) and each additional day that the container remained beyond the allotted time in the port (demurrage charge). The companies maintain that these charges were applied when the goods were “in MSC's custody and could not be released at the ports of destination as a result of its own illegitimate delay.”
The lawsuit requests that MSC be prevented from repeating this conduct, in addition to other corrective measures and fines. It also seeks to provide justice for the losses experienced by the Chilean fruit exporters due to the alleged systematic abuses by the Mediterranean Shipping Company.
