Global Link Response on MOL Complaint to the FMC
May 29, 2009
Global Link Logistics, a leader in containerized ocean freight transportation and supply chain visibility, offers the following clarification on the Federal Maritime Commission (FMC) complaint filed by Mitsui O.S.K. Lines Ltd (MOL), for cargo diversions in violation of the Shipping Act of 1984:
The complaint:
Global Link’s prior practice of re-routing the domestic inland transportation leg of a through shipment violated the Shipping Act of 1984 Section 41102(a).
The clarification:
MOL's complaint comes on the heels of an AAA arbitration panel holding the company's former owners liable to Global Link and its parent for millions of dollars, based on "fraudulently inadequate" disclosures regarding the company's routing practices.
The practices cited were established and predominantly committed prior to the current ownership of Global Link Logistics. Upon discovery of these routing practices, the current management of Global Link appropriately transitioned to operating practices within the proper and lawful methods for routing cargo.
The claim refers to practices instituted by former owners of Global Link. These practices were not disclosed to the buyers during the diligence phase of the purchasing process in 2006.
The current ownership acquired Global Link Logistics in June 2006. Shortly after the purchase, the new company management discovered the “mis-routing” issue and implemented new procedures to be compliant with the FMC. Subsequently, Global Link voluntarily disclosed the matter to the FMC.
The complaint filed by MOL also incorporates allegations against the former owners responsible for the establishment of this practice, Olympus Growth Fund III and CJR World Enterprises. CJR World Enterprises is a company wholly owned by Chad J Rosenberg.
The “mis-routings” largely performed by previous ownership and management do not represent the Global Link philosophy or the current operating practices of the management team today.
About Global Link Logistics
Global Link is a leading freight forwarder from Asia to the U.S. The flagship of Global Link’s success is its Single Point Customer Service. This direct contact and personalized service allows Global Link to support its customers’ goals of reduced landed cost, speed to market and enhanced supply chain visibility for optimum operational performance.
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