The U.S. Federal Maritime Commission (FMC) received three new formal complaints in March 2024 alleging violations of the U.S. Shipping Act and FMC regulations.

Unreasonable Cargo Practices and Unlawful D&D – FMC Docket No. 24-14:  AirBoss Defense Group, LLC, a U.S.-based survivability company, filed a formal complaint against FedEx Trade Networks Transport & Brokerage, Inc., Mediterranean Shipping Company S.A., and Total Terminals International, LLC alleging various violations of the U.S. Shipping Act.

Specifically, AirBoss alleges that from May to December 2021 it arranged for a shipment of over 200 containers of rubber gloves. The shipment was held by U.S. Customs and Border Protection (CBP) due to a Withhold Release Order (WRO) issued against the glove manufacturer. CBP requires the exportation or destruction of goods subject to WROs. Over the next several months the containers became subject to various liens for unpaid ocean freight charges, detention, demurrage, chassis charges, and other related storage charges. The cargo was ultimately destroyed after AirBoss paid $11,000,000 to MSC and FedEx to settle some of the accrued charges.

AirBoss alleges that FedEx, MSC, and Total Terminals failed to properly inform them of and invoice for all charges in a timely manner which delayed the destruction of the goods. Additionally, AirBoss alleges that FedEx and MSC violated FMC’s incentive principal by charging detention and demurrage during the CBP hold. As a result of these actions, AirBoss alleges at least $11,000,000 in damages from charges paid to release the goods for destruction.

AirBoss requests the Commission to order FedEx, MSC, and Total Terminals to cease and desist from these Shipping Act violations and pay reparations for all damages including attorneys’ costs and fees, to order that AirBoss has no duty to pay detention and demurrage charges, and to provide any other relief the Commission deems proper.

Unreasonable Cargo Practices and Unlawful D&D – FMC Docket No. 24-16:  Samsung Electronics America, Inc. filed a formal complaint against COSCO Shipping Lines Co., Ltd. alleging various violations of the U.S. Shipping Act.

Specifically, Samsung alleges that starting in 2020 COSCO regularly failed to perform its obligations for inland transportation for store door moves. These failures resulted in excessive demurrage, detention, and rail storage charges which COSCO billed to Samsung even though COSCO was responsible for the inland delivery. Samsung further alleges that COSCO issued inaccurate and incomplete detention and demurrage invoices. Additionally, Samsung alleges that COSCO retaliated against them and had inadequate dispute resolution protocols.

As a result of COSCO’s actions, Samsung alleges they were forced to pay excessive and unlawful charges and to perform COSCO’s inland transportation responsibilities. Samsung does not provide a monetary value of the alleged unlawful charges. Instead, Samsung alleges they were invoiced in excess of 5,000 individual demurrage charges and over 17,000 individual detention-type charges.

Samsung requests the Commission to order COSCO to pay reparations for their unlawful conduct, pay any other amounts the FMC deems appropriate, cease and desists from the unlawful conduct, and to provide any other relief the Commission deems proper.

Unreasonable Cargo Practices and Unlawful D&D – FMC Docket No. 24-17:  Samsung Electronics America, Inc. filed a formal complaint against Orient Overseas Container Line Limited and OOCL (Europe) Limited alleging various violations of the U.S. Shipping Act.

Specifically, Samsung alleges that starting in 2021 OOCL regularly failed to perform its obligations for inland transportation for store door moves. These failures resulted in excessive demurrage, detention, and rail storage charges which OOCL billed to Samsung even though OOCL was responsible for the inland delivery. Samsung further alleges that OOCL issued inaccurate and incomplete detention and demurrage invoices. Additionally, Samsung alleges that OOCL retaliated against them and had inadequate dispute resolution protocols.

As a result of OOCL’s conduct, Samsung alleges to have suffered serious and substantial injuries and monetary damages. Samsung does not provide a monetary value of the alleged unlawful charges, but instead alleges to have paid over 4,400 erroneous demurrage, detention, and associated charges.

Samsung requests the Commission to order OOCL to pay reparations for their unlawful conduct, pay any other amounts the FMC deems appropriate, cease and desists from the unlawful conduct, and to provide any other relief the Commission deems proper.

For more details visit the FMC’s online reading room. The FMC’s reading room provides access to FMC dockets, related documents, notices, and orders.

The U.S. Federal Maritime Commission (FMC) recently announced the hiring of Mohammad “Ali” Usman as the agency’s Chief Information Officer (CIO). Mr. Usman will serve as director in all areas of information technology (IT) and as the primary IT technical advisor to the Managing Director.

“Well functioning, publicly accessible, and secured information systems are vital to being able to meet the mission of a government agency in the 21st Century. Mr. Usman possesses skills and experience that permit him to be pivotal in driving the Commission’s IT initiatives and fostering continued growth in its technology. I welcome him to the Commission and am confident he will make many significant contributions to the effectiveness of the organization,” said FMC Chairman Daniel B. Maffei.

Prior to joining the Federal Maritime Commission, Mr. Usman worked at the U.S. Department of Agriculture Food Safety and Inspection Service, where he served as Chief Technology Officer. Prior to that, Mr. Usman worked at the U.S. Government Publishing Office.

Mr. Usman earned a master’s degree in information technology from Kennesaw State University and a bachelor’s degree in computer science from The Islamia University of Bahawalpur, Pakistan. He also holds graduate certificates in Information Security and Enterprise IT Management as well as certificates in IT Infrastructure Library and Scrum Master.

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective April 15, 2024, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and ZIM. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The April 15th GRIs will be the eight GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 per reefer container. GRI amounts for all other container sizes are as per formula.

Some carriers also updated their tariffs to include new General Rate Increases (GRIs) effective May 1, 2024, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), Yang Ming, and Zim. See table below for GRI amounts per 40ft container. GRI amounts for all other container sizes are as per formula. The May 1st GRIs will be the ninth GRI of 2024 for the East Asia/USA trade lane.

NOTE 1:  COSCO GRIs apply on all cargo moving under service contracts only.

NOTE 2:  Evergreen GRIs will be USD 2000 per 40ft container for dry cargo, and USD 2000 per reefer container. GRI amounts for all other container sizes are as per formula.

Each carrier maintains its own tariffs and controls its own pricing.

The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.