Shipper challenges $2M D&D fees, blames COSCO's routing.
A Texas lighting company has filed a complaint with the Federal Maritime Commission seeking up to $2 million in relief from detention and demurrage (D&D) charges by COSCO Shipping. The company, Visual Comfort & Co. (VCC), alleges COSCO unfairly imposed the charges during congestion at ports in 2021-2022 instead of diverting shipments.
A Texas lighting company has filed a complaint with the Federal Maritime Commission seeking up to $2 million in relief from detention and demurrage (D&D) charges by COSCO Shipping. The company, Visual Comfort & Co. (VCC), alleges COSCO unfairly imposed the charges during congestion at ports in 2021-2022 instead of diverting shipments.
VCC says COSCO kept accepting goods despite backlogs that prevented return of empty containers. This tied up chassis and space needed to clear containers. VCC argues COSCO should have diverted cargo with no available space or extended free time before D&D charges.
The complaint says VCC has $1.2 million in charges so far, approaching $2 million. It cites an FMC rule saying D&D should incentivize cargo movement, not penalize when carriers cause delays.
The complaint follows growing shipper complaints about D&D charges during pandemic shipping disruptions. The FMC acknowledges a spike in complaints and is developing faster resolutions. Carrier billing transparency and fee justification are central issues in 2022 reforms to the Ocean Shipping Act. An FMC policy on fees is expected in 2024.
