FMC Tells Carrier to Pay $291,000 in Reparations to Distributor
The Federal Maritime Commission this week ordered AAF Logistics, a California-based non-vessel operating common carrier, to pay more than $291,000 to Chicago-based distributor Color Brands, which accused AAF in 2022 of charging for cargo insurance it didn't obtain and improperly denying damaged cargo claims.
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Color Brands said it paid insurance premiums on 1,221 shipments and that AAF provided proof of insurance for only three. Color Brands also said that 15 shipments sustained cargo damage and that AAF denied its claims without providing a clear explanation.
AAF mounted almost no defense against Color Brands' allegations, as it didn't respond to the complaint or multiple orders in the case, and it terminated the attorney it originally hired to represent it, the FMC said.