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Sea Freight

Samsung files landmark FMC case against HMM

11 Jun 2024 - by Staff reporter
 Source: Forbes (altered image)
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The US subsidiary of South Korean tech giant, Samsung, has lodged what could be the largest complaint to date with the Federal Maritime Commission (FMC) against a shipping line, based on claims of erroneous detention and demurrage (D&D) charges.

According to charges filed with the FMC, Hyundai Merchant Marine (HMM) imposed about 96 000 D&D charges on Samsung which the manufacturer claims is threatening its business operations.

Samsung argues that HMM has compelled them to pay these charges due to the carrier's inability to complete inland deliveries.

The complaint is the latest in a series of actions taken by shippers and truckers against ocean carriers over unfair D&D billing practices.

In recent months, the FMC has received claims exceeding $67m related to D&D.

While the FMC has recently revised its rules on D&D to promote supply chain fluidity and ensure a clear connection between fees and the failure to pick up cargo or return equipment on time, some issues remain unresolved.

Shippers and truckers have long complained about the "constant game of runaround" when disputing erroneous carrier invoices.

The new FMC regulations have been generally welcomed, but concerns persist that if a dispute is denied, shippers can still effectively "short" the trucker invoice, forcing the trucker to bear the detention charge.

Shippers such as Samsung are claiming that the "elephant in the room" of erroneous carrier invoices has still not been fully addressed.

Samsung's complaint against HMM is the latest high-profile case highlighting the ongoing tensions between ocean carriers and their customers over D&D practices in the US.

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