FMC Threatens COSCO with $16.7M Penalty for Delayed D&D Payment
What Happened?
The Federal Maritime Commission (FMC) is threatening COSCO with a potential $16.7 million civil penalty for failing to pay a $24,328 reparations award related to a detention and demurrage dispute. This case highlights the increasing financial risks for carriers due to heightened FMC enforcement of billing and compliance orders. A final decision is expected by April 2025, setting a significant precedent for carrier conduct in the US.
KEY HIGHLIGHTS
Published date
October 13, 2026
Carrier
COSU
Advisory category
regulatory
Affected Trade lanes
Global -> North America, North America -> Global
Who is Affected?
Shippers, freight forwarders, and BCOs involved in US import/export trade lanes, particularly those impacted by detention and demurrage charges, should note this precedent-setting FMC enforcement action.
Source:
COSCOReview D&D cost exposure
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