U.S. Court Orders Zim Lines to Answer Writ on Describing Cargoes

The Zim-Israel Navigation Company has been ordered by the United States District Court here to show cause why it should not comply with a subpoena issued by the Federal Maritime Commission, calling upon the Israeli shipping line to produce billing records since 1964, showing “any known misdeclarations of freight,” The subpoena was issued in response to a complaint by five Japanese marine insurance companies and two American insurance firms who claimed that Zim and certain shippers in Japan had “conspired” to misdescribe the cargo.

(In ocean shipping, steamship companies sometimes permit shippers to misdescribe cargoes to have their goods carried at lower freight rates on ships that might otherwise sail with a large part of their capacity unused,)

NEXT STORY