Samsung Electronics America (SEA) is
seeking at least $186 million in reparations from the world’s third largest
container line CMA
CGM in one of the largest post-pandemic
regulatory claims filed with US regulators against a major container carrier. The complaint, filed recently at the Federal
Maritime Commission (FMC), accuses the liner operator of
widespread violations of the US Shipping
Act, alleging unjust and unreasonable practices regarding inland
transportation, demurrage and detention billing, and cargo release policies
between 2020 and 2023. The $186 million
claim includes $148 million in unlawful demurrage, detention, and rail storage
costs; $8.1 million in operational mitigation expenses, and $30 million in
prejudgment interest. “The staggering costs of demurrage and detention charges
were unsustainable, presented a material threat to SEA’s ability to provide its
products to US consumers, and made it necessary to bring this complaint,”
according to filing. Samsung pointed out that it had attempted
to resolve the dispute through in-person meetings in 2025 and 2026. Despite
those efforts, however, “CMA CGM has refused to engage meaningfully in efforts
to address SEA’s claims and resolve the disputes with repayment of demurrage
and detention and related charges SEA was forced to pay,” the complaint
notes. At the heart of Samsung’s complaint is the execution of “store door”
deliveries, whereby an ocean carrier is contractually obligated to arrange and
pay for intermodal container moves via rail and/or truck from a discharge port
to a warehouse or distribution center. “In store door delivery, the ocean
carrier issues a through bill of lading or sea waybill indicating the marine
port at which a container is discharged and an inland ‘place of delivery’ to
which the ocean carrier undertakes to transport the container after the
container is discharged from the vessel at the port”, Samsung’s complaint
explains. However, beginning in approximately
2020, CMA CGM began repeatedly failing to perform its inland transportation
obligations of SEA’s merchandise to inland destinations properly, Samsung
alleges, with the carrier citing severe port congestion and shortages of rail
chassis. Despite CMA CGM’s responsibility under through bills of lading, the
carrier systematically shifted the financial burden of the service shortfalls
onto Samsung, the electronics company contends. Samsung asserted it was subjected to
over 121,000 separate demurrage, detention, and rail storage fees arising from
delays entirely outside its control. In one example involving multiple
containers arriving at an inland rail ramp in 2021, CMA CGM’s alleged failure
to undertake its transportation obligations caused over $3.7 million in accrued
rail storage charges.
Samsung also claims that CMA CGM enforced
coercive “finance holds” and account suspensions on unrelated and uninhibited
import shipments to force payment of disputed demurrage invoices. Samsung’s
filing references several other complaints filed at the FMC against CMA CGM
brought by major retailers and others challenging the legality of the carrier’s
detention and demurrage practices. In 2024, CMA CGM paid $1.98 million to
resolve allegations that it improperly demanded payment from a third party who
should not have been billed. Samsung
has requested a formal hearing on the matter at FMC headquarters in Washington,
D.C.