Maersk terminated its cooperation with KLL or took legal action against it
Maersk has decided to terminate its cooperation with Indian third-party Logistics company Kaushalya Logistics (KLL), due to the suspicion that KLL exaggerated the role of cooperation with Maersk to obtain improper market competitive advantage.
According to industry sources, KLL allegedly used the transport services contract it secured from Maersk to gain an "improper" market advantage and boost its equity interests, while also participating in an initial public offering (IPO) plan to raise funds.
In the announcement, KLL claimed to manage Maersk's ground transportation needs across India and take the opportunity to improve transportation solutions and operational efficiencies, further strengthening its position as a leading logistics provider.
The company is said to be the first time Maersk has been its transport supplier, Maersk claims to have a presence in 70 regions of India and group revenue of about $175 million in the last financial year (2023-24).
In addition to terminating the contract, Maersk is also considering legal action against KLL for alleged breach of agreed contractual conditions. KLL's share price is said to have risen sharply after Maersk announced the contract.
According to industry sources, KLL allegedly used the transport services contract it secured from Maersk to gain an "improper" market advantage and boost its equity interests, while also participating in an initial public offering (IPO) plan to raise funds.
In the announcement, KLL claimed to manage Maersk's ground transportation needs across India and take the opportunity to improve transportation solutions and operational efficiencies, further strengthening its position as a leading logistics provider.
The company is said to be the first time Maersk has been its transport supplier, Maersk claims to have a presence in 70 regions of India and group revenue of about $175 million in the last financial year (2023-24).
In addition to terminating the contract, Maersk is also considering legal action against KLL for alleged breach of agreed contractual conditions. KLL's share price is said to have risen sharply after Maersk announced the contract.
