SIMIC

The accusation is the first formal complaint accusing container lines of taking advantage of the pandemic-driven disruption in ways that violate the Shipping Act.

MCS Industries declared Cosco and MSC continue to fail to honour service contract allocations, inflicting more than US$600,000 in damages.

"In negotiations for the current shipping year, [Cosco and MSC] and other global ocean carriers collectively refused to provide MCS sufficient commitments in their advance service contracts, instead providing only a fraction of the space MCS needed at substantially higher prices, which MCS accepted in order to secure such space, believing that such higher prices would fully compensate [Cosco and MSC] for current market disruptions," said MCS.

Federal Maritime Commission commissioner Rebecca Dye proposed ways that Congress could strengthen anti-retaliation protections, including doubling reparation levels.

The FMC has come under pressure from Congress and the Biden administration to crack down on shipping law violations.