A battle over shipping rates - Independent Retailer
A lawsuit alleges that UPS and FedEx violate antitrust law by conspiring to lock in shipping rates. AFMS Logistics, the company that plans to re-file its federal complaint as early as tomorrow, seeks up to $60 million in damages.
Although AFMS is the only plaintiff listed in its complaint, other transportation consulting firms that offer similar services say that they have also been significantly hurt by the refusal of UPS and FedEx to work with them on rate contracts. “No question, this has impacted us by at least a couple million dollars,” says Tony Nuzio, president of ICC Logistics Services Inc. in Hicksville, NY. “UPS and FedEx know third-party negotiators really understand the shipping business and save their clients a lot of money.”
UPS, however, contends that it prefers to deal directly with clients to improve shipping arrangements. “We have always said we want to deal directly with our customers, look at everything in their shipping systems and processes and see how we can help them be more efficient,” the spokeswoman says.
A lawsuit alleges that UPS and FedEx violate antitrust law by conspiring to lock in shipping rates. AFMS Logistics, the company that plans to re-file its federal complaint as early as tomorrow, seeks up to $60 million in damages.
Although AFMS is the only plaintiff listed in its complaint, other transportation consulting firms that offer similar services say that they have also been significantly hurt by the refusal of UPS and FedEx to work with them on rate contracts. “No question, this has impacted us by at least a couple million dollars,” says Tony Nuzio, president of ICC Logistics Services Inc. in Hicksville, NY. “UPS and FedEx know third-party negotiators really understand the shipping business and save their clients a lot of money.”
UPS, however, contends that it prefers to deal directly with clients to improve shipping arrangements. “We have always said we want to deal directly with our customers, look at everything in their shipping systems and processes and see how we can help them be more efficient,” the spokeswoman says.
