Running a shipping business can be cut-throat. Some folk don’t play straight – they bend the rules or break them outright. Here’s how I deal with unfair competition and keep my business secure.
Recognise Unfair Actions
Unfair competition comes in many forms. Watch out for:
- Poaching customers with false promises
- Spreading rumours or lies about your company
- Pricing so low it’s unsustainable just to hurt your business
- Copying your contracts or paperwork without permission
- Sabotaging your deliveries or repair work
Keep a careful record of any shady moves. Save emails, screenshots, and messages. Ask crew or staff to tell you what they notice.
Know Your Legal Shield
Maritime law, and regular business law, protect honest shipowners. In America, you’re covered by federal and state law against unfair trade and competition. Main things to look for:
- The Federal Trade Commission Act
- The Sherman Antitrust Act
- State laws on unfair business practices
These rules stop rivals from lying, cheating, or interfering with your contracts. Maritime law also stops interference with ships, crews, and cargo if it hits your bottom line.
Tough Steps You Should Take
- Speak Up First: Send a direct message or letter to the competitor. Be firm, but professional. Say what’s happened and what needs to stop.
- Warn the Offender: If they ignore you, send a formal warning. Put it in writing. Keep copies for your records.
- Show Your Strength: Let customers, agents, and suppliers know you won’t tolerate dirty tricks. Share the facts, but keep it civil – bitter words hurt you more than them.
- Get Legal Backup: Speak to a maritime lawyer if things get serious. They can send a legal cease-and-desist letter. There’s muscle behind the law, and most crooks back off fast.
- Gather Evidence: Collect as much proof as possible: contracts, agreements, timestamps, and witness statements. Proper records speed up legal action if it becomes needed.
Block Their Tricks
Defend yourself with airtight contracts. Use clear terms with your clients, partners, and crews. Make sure non-compete, confidentiality, and penalty clauses are in every deal.
Stay up-to-date on maritime and business law changes. Small updates can save big headaches, so subscribe to trade bulletins or join associations.
Prevent Future Trouble
Hire reputable agents and crew. Bad hires make you vulnerable. Run background checks and get good references before bringing folk on board.
Build solid relationships with port authorities and insurers. Good standing means quicker support when trouble hits.
Protect Your Reputation
Never stoop to your rival’s level. Stay honest and respected. When you’re fair, word travels—your business will thrive while theirs faces trouble.
When to Go to Court
If the competitor keeps going, causes serious harm, or costs you real money, you may have to sue. Court isn’t quick or cheap, but sometimes it’s the only answer. Your lawyer can guide you on damages and settlements.
Keep Moving Forward
After trouble passes, focus on your family business. Invest in new ships, better repairs, or smoother logistics. Stay visible in your trade community and your good name will work harder than any lawsuit.