WiseTech defends DSV relationship, as CargoWise volumes rise 20%
In what has been a troubled week, WiseTech Global is seeking to reassure investors over ...
VW: THE LAST CUT IS THE DEEPESTJBHT: GEARING UP VW: BUYING TIMER: BIG VOTE OF CONFIDENCEAAPL: BEARISH HEDGEYE AAPL: THE BEAR CASEFDX: LIFE SCIENCES ORG UNVEILEDWTC: UPS AND DOWNSWTC: ASX ANNOUNCEMENT REGARDING DSV PARTNERSHIP VW: D-DAYPLD: KEEP PUSHINGDHL: NEW AIR SERVICEDHL: GUIDANCE UPGRADE REACTION
VW: THE LAST CUT IS THE DEEPESTJBHT: GEARING UP VW: BUYING TIMER: BIG VOTE OF CONFIDENCEAAPL: BEARISH HEDGEYE AAPL: THE BEAR CASEFDX: LIFE SCIENCES ORG UNVEILEDWTC: UPS AND DOWNSWTC: ASX ANNOUNCEMENT REGARDING DSV PARTNERSHIP VW: D-DAYPLD: KEEP PUSHINGDHL: NEW AIR SERVICEDHL: GUIDANCE UPGRADE REACTION
DSV has been accused of ‘bait and switch’ tactics, after attempting to persuade a shipper to ditch its existing forwarding partners – or renegotiate an agreed deal, it has been claimed.
In a lawsuit filed this month, rose farmer Passion Growers claims that, in July 2023 DSV Air & Sea (Miami) induced the company to transfer its freight forwarding contract for shipments from Ecuador to the US to DSV. They reached an agreement for one year (although the terms of the deal could not be filed, as DSV insisted on a non-disclosure agreement).
Passion, happy with the new arrangement, dismissed its other freight forwarders – and everything was good for five months.
But in December 2023, DSV “attempted to alter the terms of the agreement”. It tried to renegotiate, as well as expand the agreement to include Passion Growers’ shipments out of Colombia, says the filing.
When Passion Growers declined the new terms, it claims DSV said it would no longer honour the original agreement.
“Passion Growers had to find a new freight forwarder and incurred higher costs and expenses than those set forth in the agreement,” it claims. “To date, Passion Growers has suffered damages of approximately $790,060.”
Passion Growers claims: “[The] defendant’s practices constituted an unfair and immoral scheme to induce [the] plaintiff to alter its shipping practices to the defendant’s benefit. Defendants then attempted to execute a “bait & switch” by attempting to alter the terms and the scope of the agreement.”
The rose grower claims the DSV executive that attempted the “bait and switch” move was “well-aware that the position he has taken on behalf of DSV Air & Sea is wrong and contrary to the agreement”.
Passion is suing for breach of contract, as well as under Florida’s Deceptive and Unfair Trade Practices Act.
DSV has yet to file a response.
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