Alleged foul play by shipping company

By JASON SOM KAUT
ALLEGATIONS of foul play have been raised in the management of major coastal vessel operator Lutheran Shipping.

Amongst the allegations was the preference to the movement of cargo of a major business house in Lae.
Companies needing to move cargo to Aitape and Manus made the allegations recently after frustrations of delays during the festive period.
Executive manager of Lutheran Shipping Joe Inara could not clarify the situation and instead issued a “no comment” when contacted but hinted he may respond later.
The allegations were raised last month and attempts through fax and phone to get comments from the management were unsuccessful.
It was alleged that last November, Luship had only one cargo vessel, the mv Umboi, available for the peak festive period as the mv Maneba was on dry dock at Madang for repair.
This sparked concerns of “short-shipment”.
Most of the vessels were now back from repair with the mv Maneba expected in Lae this week.
Sources alleged that last November, Luship chartered its only workable vessel – mv Umboi – to the Papindo Group three times, disrupting its weekly trips to Manus and Aitape.
“Despite having only one vessel … for reasons known only to certain executives, Luship chartered mv Umboi to Papindo last October and November, leaving other businesses losing business,” the source said.
It was alleged that Luship hired the Goodwill and the Penguin to freight the backlog of cargo to Manus and Aitape during the period.
Another source claimed Luship was “operating at a loss”, saying there was no rationale on the hire of mv Umboi and then the hire of the two barges – which he claimed were exorbitant.
Some firms concerned with the delay travelled to Lae to investigate.
Luship was responsible for servicing the northern part of PNG and feeder ports with the movement of cargo and passengers.
It was alleged that passengers who used the two passenger vessels had complained openly about a deteriorating service.
Having over 10 vessels a few years ago, it sold three of them, leaving two cargo vessels, three passenger and two bigger vessels now on lease to Consort Shipping.
Insiders said Luship had not invested in any new vessel for some years now despite having sold some.
Sources claimed that the company had even done away with its transport division and was now hiring forklifts and machinery to cart cargo to waiting vessels.



 

 

 

 

 

 

 

 

 

 


 

 

 

 
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