Search
Close this search box

Samsung Challenges Wan Hai at FMC Over Pandemic Container Fees

Samsung Electronics America has filed an FMC complaint against Wan Hai Lines over more than $1.2 million in detention and demurrage charges tied to pandemic-era container shipments.
Image source: Wan Hai

SHARE ARTICLE

Samsung Electronics America has filed a complaint with the US Federal Maritime Commission (FMC) against Wan Hai Lines over detention and demurrage charges linked to container shipments handled during the pandemic-era supply chain disruption.

The dispute involves more than $1.2 million in fees connected to “store door” shipments transported between 2020 and 2022. According to the filing, Samsung argued the carrier improperly transferred costs to the shipper despite controlling the inland transportation portion of the cargo movement.

Under store door arrangements, carriers are responsible for moving cargo from the port terminal to the inland delivery location. Samsung claimed terminal congestion, limited appointment availability and inland transport disruptions that triggered the disputed charges were within the carrier’s operational responsibility rather than the shipper’s control.

The complaint alleged Wan Hai Lines violated provisions of the US Shipping Act and failed to provide an adequate process to resolve disputes tied to the invoices.

The case marks the latest action by Samsung against container carriers over detention and demurrage billing practices during the Covid-19 logistics crisis. At the height of the disruption, importers argued they were unable to retrieve containers because of severe congestion and transport delays across major US gateways, while carriers and terminals continued issuing invoices.

Samsung has previously pursued similar complaints against ZIM Integrated Shipping Services, HMM, SM Line, COSCO Shipping Lines and Orient Overseas Container Line.

Last year, Samsung secured an FMC award worth about $3.68 million in a separate dispute involving ZIM Integrated Shipping Services after regulators found the carrier imposed charges despite cargo owners lacking a realistic opportunity to collect containers.

US regulatory oversight of detention and demurrage practices has tightened since the pandemic. The FMC’s 2020 interpretive rule stated such charges should encourage cargo movement rather than operate as punitive revenue measures. The Ocean Shipping Reform Act of 2022 later shifted responsibility onto carriers to demonstrate that disputed fees are reasonable.

The latest complaint also arrives as US regulators continue increasing scrutiny of carrier billing practices in the container shipping sector. Earlier this year, the FMC issued a record $45.6 million reparations ruling against Orient Overseas Container Line in another pandemic-related detention and demurrage case.

The Samsung-Wan Hai dispute will now proceed through formal FMC review. An administrative law judge is expected to issue an initial decision by May 2027, with a final FMC ruling anticipated later the same year.

Wan Hai Lines has not publicly responded to the complaint. Under FMC procedures, the carrier must file its answer within 25 days of service.




Editorial Note:
This article was prepared with the assistance of AI tools to enhance clarity and efficiency.
All information has been reviewed and verified by the HMT News editor.
HMM will relocate its headquarters from Seoul to Busan North Port after labor union approval, reinforcing Busan’s role in South Korea’s maritime and container shipping sector.
A collision between Maersk Chattogram and HR Turag damaged the Maersk vessel’s hull, delayed cargo access, and added pressure to Chattogram Port operations.

Subscribe to HMT WEEKLY

Receive HMT WEEKLY in your mailbox.

Heavy Marine Transport News, Delivered Daily — Stay informed on shipping, offshore, and global logistics.

SECTION

INFORMATION

CONTACT

For general inquiries and to contact us,
please email: info@hmt-news.com