Two Supply Source subsidiaries filed another five complaints at the Federal Maritime Commission Feb. 14 against multiple carriers, accusing them of violating the Shipping Act and charging unfair detention and demurrage from 2021 to 2022, leading to over $2.1 million in financial damages. The companies include COSCO Shipping Lines, Lihua Logistics Company Limited, CMA CGM, Overseas Container Line Limited, and Yang Ming Marine Transport Corp.
Mediterranean Shipping Co. (MSC) violated the Shipping Act by assessing detention and demurrage for periods that were outside the shipper’s control, shippers told the Federal Maritime Commission. The complaint, filed Feb. 14 by Impact Products and Safety Zone, both subsidiaries of Supply Source, alleged that MSC refused to divert shipments to less crowded ports and failed to extend the number of free days afforded when ports were congested from 2021 to 2022, leading to over $200,000 in financial damages.
Visual Comfort & Co. (VCC) filed an amended complaint against COSCO Shipping Lines Co., the Federal Maritime Commission said in a Feb. 14 Federal Register notice. In the complaint, which was filed with the FMC Feb. 6, VCC said that from January 2021 to December 2022, COSCO didn't divert shipments to less crowded ports or extend the number of free days when "circumstances outside VCC's control" affected the shipment, leading to more than $1 million in damages.
For proponents of the Strengthen Wood Product Supply Chains Act, requiring the federal government to tell importers a specific reason the goods were detained and provide information that "may accelerate the disposition of the detention" would increase transparency and save importers money on demurrage fees. For the bipartisan bill's opponents, the bill's planks, including allowing importers to move the wood to a bonded warehouse after the first 15 days of detention, would undermine law enforcement.
Reps. Dusty Johnson, R-S.D., and John Garamendi, D-Calif., urged the Federal Maritime Commission on Jan. 26 to finalize its proposed rule on demurrage and detention billing requirements “as expeditiously as possible.”
Dependable Highway Express charged an importer detention and demurrage on behalf of Mediterranean Shipping Co. after the ocean carrier had waived the charge, importer ICL USA said in a complaint to the Federal Maritime Commission. DHE also assessed ICL a 10% surcharge on the fees, in violation of its contractual role as a trucker.
A Texas shipper accused major Chinese ocean carrier Cosco Shipping Lines of violating U.S. shipping regulations through unfair detention and demurrage charges, costing it nearly $2 million in damages. Visual Comfort & Co, a shipper of lighting products, said Cosco “refused” to extend free days for containers that couldn’t be returned to the port and declined to divert shipments to less crowded ports, allowing the carrier to charge “astronomical” D&D fees.
The Federal Maritime Commission is granting ocean carriers special permission to immediately hike rates on containers that are being rerouted around the southern cape of Africa, in response to concerns over possible Houthi rebel attacks on usual routes through the Red Sea.