Thursday, January 19, 2012

UPS, Fedex trial date looms in 2013 over antitrust claims

A complaint to the U.S. Department of Justice filed by a Portland, Ore-based third-party consulting firm in 2010 against parcel carrier giants United Parcel Service and Federal Express alleging antitrust violations is reportedly moving towards an actual trial date in 2013.

AFMS LLC, a firm that negotiates small package rates with carriers like UPS and Fedex on behalf of shippers, originally filed the complaint on June 10, 2010.

The complaint claimed that executives from UPS and FedEx announced at an industry event in October 2009 that they would no longer deal with third-party consultants.

The AFMS complaint alleges that subsequent, internal memos from UPS and FedEx were circulated on April 23, 2010 that laid out anti-third-party policies.

The complaint to the DOJ contends that UPS and FedEx colluded to exclude third-party shipping consultants from business dealings.

In statement released today by AMFS, the consulting firm said it had “a history of engaging in amicable and mutually profitable negotiations [with UPS and Fedex] for nearly 20 years for companies like Sony, GE, Quiksilver, Domino’s Pizza, Johnson & Johnson, Toyota, St. John Knits, Precision Castparts, REI, Blue Cross Blue Shield, Fred Hutchinson Cancer Research Center, Reader’s Digest, Hunter Douglas, Mentor Graphics, Fred Meyer and many more.”

The parties in the claim have now reportedly agreed to a trial date, pending court approval, of June 18, 2013.

“We are obviously pleased that our case will be proceeding forward,” said Mike Erickson, founder and president of AFMS.

“By severely restricting dealings with third-party consultants, UPS and FedEx are unfairly preventing shippers from accessing valuable knowledge and information that can make a significant impact on their contract negotiations and, ultimately, on their bottom lines. We strongly believe in the claims made in our complaint and are encouraged by the defendants’ decision not to challenge our pleadings,” Erickson said.

 

 

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