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July 3, 2012

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FedEx sues Chinese firm over shipping

FEDEX is suing a Chinese furniture company for an air freight charge of more than 307,800 yuan (US$48,472) for baby cribs and sliding doors after the receiver in the United States refused to pay the fee in 2009.

The latest legal battleground is the Shanghai No.1 Intermediate People's Court, which heard the case yesterday after FedEx lost its first trial in a district court in April and appealed.

The courier said Ningbo Fubang Furniture Industries Ltd asked it to send baby cribs and sliding doors weighing more than 1 ton in three parcels from Shanghai to Robbinsville in New Jersey in March 2009.

According to the agreement between FedEx and Fubang, the air freight was supposed to be paid by the receiver, Stanley Furniture Company, within 30 days after it signed for the delivery. But the US firm took the goods and refused to pay, according to testimony.

FedEx claimed it had unsuccessfully sought payment from Stanley Furniture. The courier then filed a lawsuit against Fubang for compensation from the shipper of the products.

In a previous hearing, FedEx provided the proof of delivery of the parcels, with signatures, to show that the parcels had been delivered and it deserved compensation. But the Pudong New Area People's Court didn't acknowledge the documents as valid evidence, saying the proofs were copies generated by the courier's internal system.


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