More shippers may sue shipping lines
Argos action against Maersk may spark more breach of contract claims
More shippers are expected to launch claims against shipping lines if UK retailer Argos succeeds in its bid to sue Maersk Line for an alleged breach of contract.
Andrew Trail, from online shipper forum Shippers’ Voice, said he was not surprised that someone had mounted such a challenge against a shipping line.
But he also suspected that the case could last a long time because of the implications if Argos won.
He said: “I wouldn’t be at all surprised if others followed suit, but I guess the majority will wait to see the outcome of this case.
“Because the implications for shippers and carriers are so significant, this may run and run, as the saying goes.
“I wouldn’t be surprised if we end up with an appeal by whichever side loses, and that could extend the case further.”
Last week, it was revealed by UK newspaper The Independent that Argos had gone to the UK High Court to claim US$13.9m (£8.9m) compensation for an alleged contract breach, between 2010 and 2011.
Argos claims Maersk wrongfully repudiated and/or renounced a contract.
“[Argos] had to find another shipping line in order to ship containers from the Far East to the UK. [Argos] duly obtained alternative space protection for a period of two years from Kuehne & Nagel. Accordingly, aggregate losses are $13,877,660.”
Argos also claims: “On 15 January 2010, [Maersk said it] would no longer provide any space protection for [Argos] at the agreed rate [$930 per container] and was, instead, unilaterally imposing an increased rate of $2,730 per container.”
Argos and Maersk Line have refused to comment on the case.
Andrew Trail, from online shipper forum Shippers’ Voice, said he was not surprised that someone had mounted such a challenge against a shipping line.
But he also suspected that the case could last a long time because of the implications if Argos won.
He said: “I wouldn’t be at all surprised if others followed suit, but I guess the majority will wait to see the outcome of this case.
“Because the implications for shippers and carriers are so significant, this may run and run, as the saying goes.
“I wouldn’t be surprised if we end up with an appeal by whichever side loses, and that could extend the case further.”
Last week, it was revealed by UK newspaper The Independent that Argos had gone to the UK High Court to claim US$13.9m (£8.9m) compensation for an alleged contract breach, between 2010 and 2011.
Argos claims Maersk wrongfully repudiated and/or renounced a contract.
“[Argos] had to find another shipping line in order to ship containers from the Far East to the UK. [Argos] duly obtained alternative space protection for a period of two years from Kuehne & Nagel. Accordingly, aggregate losses are $13,877,660.”
Argos also claims: “On 15 January 2010, [Maersk said it] would no longer provide any space protection for [Argos] at the agreed rate [$930 per container] and was, instead, unilaterally imposing an increased rate of $2,730 per container.”
Argos and Maersk Line have refused to comment on the case.
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