Dispute between Kuehne+Nagel and Baker Hughes Headed to Arbitration in US Court
A US federal court judge has ordered a dispute between Kuehne+Nagel and oil and gas field services company Baker Hughes to arbitration. The disagreement revolves around a September 2020 air cargo shipment that was seized by customs authorities in Brazil.
In court documents obtained by Air Cargo News, Kuehne+Nagel stated that it had fulfilled all of its legal and contractual obligations. The forwarder claimed that the airline responsible for transporting the cargo failed to ensure that the necessary security manifest accompanied the shipment, resulting in the seizure. Kuehne+Nagel also asserted that it was never given authorization or instruction to intervene with Brazilian customs authorities to secure the release of the cargo.
Despite efforts to reach a resolution after Baker Hughes filed a claim, the case ultimately landed in the district court for the Southern District of New York when the shipper pushed for arbitration. Kuehne+Nagel opposed this move and took the matter to court in an attempt to dismiss the arbitration request. However, the judge ruled that an arbitrator should determine the validity of the claims.
The court ordered both parties to provide updates on the arbitration process every 60 days, starting on July 22, 2022, until the arbitration is completed.
