Complaints of unfair competition have been lodged by shipping company Matson Navigation.
The shipper is suing the U.S. Transportation Department's Maritime administration in a bid to halt what it argues are unlawful subsidies to rival shipper American President Lines. The complaint, filed in federal district court in Washington DC, states that while certain U.S. vessels receive financial assistance for operating in foreign commerce, APL's Saipan operations are not eligible.
Matson, which does not receive subsidies, says it is not competing on a level playing field and has lost 23-percent of its volume to APL since 2016.
Matson is seeking to stop any further subsidies, or in the alternative, a pro-rata reduction in the payments.
In the meantime, the Global Shipping News Source, Trade Winds, reports APL is not worried about Matson's attempt to block subsidies.
