Shipping Line Charged for Dispute Over Vessel Call Agreement!

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  • Global Container Terminals (GCT) has confirmed it will take legal action against A.P. Moeller-Maersk, the world’s largest container shipping line.
  • The trial is over the decision to move vessel calls to from GCT New York to APMT Port Elizabeth, New Jersey.
  • A New York District Court has ruled against the Global Container Terminals’ request for a restraining order against Maersk’s plans.

Global Container Terminals (GCT) has stated that it plans to take legal action against Maersk over a decision to move vessel calls to from GCT New York to APMT Port Elizabeth, reports Port Technology.

Settlement to terminate agreement

In a statement to Port Technology International (PTI), GCT confirmed that it sought “immediate injunctive relief in the federal court in New York” to prevent Maersk moving its and Hamburg Sud’s vessels.

GCT state that the world’s biggest shipping liner Maersk is obliged to call at GCT New York until the close of 2021, yet Maersk is allegedly attempting to call at Port Elizabeth in New Jersey, USA, instead.

The carrier has reportedly notified GCT that it plans to stop calling at GCT New York in 1 May and offered a “generous” settlement to terminate the agreement.

Maersk has reportedly stated that it has already notified GCT that it plans to stop berthing at New York by May 2020.

Breaking reports are also stating that Maersk has filed its own lawsuit against four US Class 1 Railroads.

Maersk is alleging price fixing in violation of the Sherman Act.

Court dismisses restraining order

New York District Court has ruled against the Global Container Terminals’ (GCT) request for a restraining order against Maersk’s plans to transfer three services from GCT’s New York container terminal over to APM Terminals Elizabeth, New Jersey.

The court dismissed the restraining order on Friday, April 24th, 2020, allowing Maersk to terminate the agreement from May 1, a company spokesperson confirmed to Offshore Energy.

While the federal court in New York determined that a preliminary injunction should not be issued, meaning that the damages suffered by GCT are compensable in monetary damages, GCT is continuing legal proceedings for full damages against Maersk in order to protect our business and the integrity of the contractual commitments by our customers,” GCT said in a statement.

They added, “GCT is pursuing and will pursue all legal avenues to protect its interests relating to this wrongful action — a breach of agreement that Maersk has admitted in court documents.”

In order to move forward with the transition, Maersk committed to pay $ 5 million of compensation.

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Source: Port Technology