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FMC Should Dismiss Complaint Due to Lack of Jurisdiction, Hapag-Lloyd Says

Hapag-Lloyd America said the Federal Maritime Commission should dismiss a complaint that alleged the company violated U.S. shipping regulations (see 2212280026), saying the FMC “lacks personal jurisdiction” in the matter. Hapag said Jan. 17 that Wisconsin-based logistics company M.E. Dey “incorrectly” asserted that Hapag is an ocean common carrier -- the company said it doesn’t meet the definition of a carrier.

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“Hapag-Lloyd America is a wholly-owned subsidiary of Hapag-Lloyd AG, and operates as Hapag-Lloyd AG’s agent in the United States. As such, Hapag-Lloyd America does not provide transportation of cargo between the United States and a foreign country,” the company said. “In a previous decision the [administrative law judge] held that the Commission lacks personal jurisdiction over Hapag-Lloyd America because it does not operate as a regulated entity as required by §41102(c).” The FMC should dismiss Dey’s complaint with prejudice, Hapag said.

In its December complaint, Dey told the FMC that Hapag failed to make containers available for pickup, causing demurrage charges to exceed more than $136,000. Dey said the demurrage charges were “unreasonable” and asked the FMC to require Hapag to pay reparations.