FMC Threatens Ocean Carrier with $16.7M Late Payment Penalty
The U.S. Federal Maritime Commission (FMC) issued an Order directing COSCO Shipping Lines Co., Ltd. to show why it should not be fined $16.7 million for a 223-day delayed demurrage reparation payment.
According to the Order, in January 2026, the FMC ordered COSCO to pay a shipper $24,328 in demurrage reparations. The FMC found that the COSCO demurrage invoices at issue did not comply with applicable Shipping Act and FMC regulations. COSCO paid the shipper reparations 223 days later and only after repeated follow up from the shipper and the FMC. The FMC alleges COSCO’s conduct likely violates the Shipping Act. Firstly, the conduct is a violation of the Commission’s Order to pay the reparations. Secondly, COSCO’s actions may constitute retaliation against the shipper. Accordingly, the FMC ordered COSCO to show cause why the FMC should not assess civil penalties for the late payment.
If the Commission finds that COSCO’s conduct violates the Shipping Act, the FMC may issue penalties for each day the payment was late. The current FMC penalty amount is $14,988. This penalty increases to $74,943 if violations are willful and knowing. If the FMC finds COSCO’s actions were willful and knowing, the penalties could total $16,712,289.
COSCO has until December 1, 2026 to explain why it failed to make timely reparations. To view the complete Order, visit the FMC’s Reading Room at Docket No. 26-13: In re COSCO Shipping Lines Co., Ltd. – Compliance with Order to Pay Reparations in FMC Docket No. 2022(I).
Transpacific Eastbound Carriers File GRIs Effective October 15, 2026, and November 1, 2026
Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective October 15, 2026, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, 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 October 15th GRIs will be the twentieth GRI of 2026 for the East Asia/USA trade lane.
| TRANSPACIFIC EASTBOUND (Asia to USA) | |
|---|---|
| GENERAL RATE INCREASE (GRI) Effective October 15, 2026 | |
Carrier | in USD, per 40ft ctr |
| CMA CGM | 2000 |
| COSCO (note 1) | 2000 |
| Evergreen (note 2) | 3000 |
| Hapag Lloyd | 3000 |
| HMM | 3000 |
| Yang Ming | 2000 |
| ZIM | 2000 |
NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.
NOTE 2: Evergreen GRIs will be USD 3000 per 40ft container for dry cargo, and USD 3000 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 November 1, 2026, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, 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 November 1st GRIs will be the twenty first GRI of 2026 for the East Asia/USA trade lane.
| TRANSPACIFIC EASTBOUND (Asia to USA) | |
|---|---|
| GENERAL RATE INCREASE (GRI) Effective November 1, 2026 | |
Carrier | in USD, per 40ft ctr |
| CMA CGM | 2000 |
| COSCO (note 1) | 2000 |
| Evergreen (note 2) | 3000 |
| Hapag Lloyd | 3000 |
| HMM | 3000 |
| Yang Ming | 2000 |
| Zim | 2000 |
NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.
NOTE 2: Evergreen GRIs will be USD 3000 per 40ft container for dry cargo, and USD 3000 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.