Samsung Accuses 2 Carriers of Failing to Move Cargo Inland, Unfair Fees
Ocean carriers COSCO Shipping Lines and Orient Overseas Container Line Limited violated U.S. shipping regulations when they failed to perform their “inland transportation obligations," charged unfair detention and demurrage fees, and refused to release cargo, Samsung Electronics America said in two separate complaints filed with the Federal Maritime Commission on March 28.
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Samsung said it paid over 22,000 "erroneous charges" to COSCO and over 4,400 charges to OOCL for unfair detention and demurrage fees. Those charges "continue to be tabulated and accrued as of the filing of" these complaints, Samsung said.
The company said OOCL and COSCO have been shipping Samsung containers under "store door" terms, where goods are transported from the supplier's facility directly to the buyer's specified location. In store door shipments, the carrier is responsible for paying detention and demurrage relating to delays for the timely delivery and removal of containers, Samsung said.
The company accused both COSCO and OOCL -- beginning in 2020 and 2021, respectively -- of "repeatedly failing" to move Samsung's goods to their inland destinations. Both carriers then began charging Samsung “dramatically increasing amounts” for detention and demurrage and other drayage-related charges for shipments of Samsung containers that the carriers were responsible for, the company said. Both carriers refused to mitigate, cancel or waive those charges, and they threatened to refuse to release unrelated Samsung containers if the charges weren't paid, Samsung said.
The company also said both carriers' invoices and demurrage letters “routinely lacked” justification for the charges. The carriers also re-billed Samsung for charges the company had already paid, both complaints said, and they "failed to properly reconcile" their invoices "with payments received from SEA and others, including payment vendors."
Samsung asked the FMC to order both carriers to pay the company reparations and to stop their "unlawful conduct," including the collection of any pending charges from their "unreasonable" practices. COSCO and OOCL didn't respond to our request for comment.