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Samsung Seeks $186 Million From CMA CGM Over Alleged U.S. Shipping Act Violations

Samsung Seeks $186 Million From CMA CGM Over Alleged U.S. Shipping Act Violations
Samsung Seeks $186 Million From CMA CGM Over Alleged U.S. Shipping Act Violations
CMA CGM
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Samsung Electronics America has filed a complaint with the U.S. Federal Maritime Commission (FMC) against CMA CGM, seeking $186 million in reparations over container and inland transportation charges.

Samsung says that CMA CGM violated the U.S. Shipping Act through its handling of inland transportation, detention, demurrage, cargo holds, cargo release, rail storage, billing and dispute resolution.

CMA CGM is the world’s third-largest container shipping line.

The dispute is mainly about “store door” shipments. Under these deals, CMA CGM had to arrange and pay for rail or truck transport from U.S. ports to Samsung’s inland warehouses and distribution centers.

The shipping company listed both the marine terminal and the final inland destination on its bills of lading or sea waybills.

Samsung says CMA CGM started moving its containers under these store-door arrangements in January 2020.

Samsung alleges that from around mid-2020, CMA CGM often failed to move the containers on time. This included delays in taking containers out of ports and rail terminals and delivering them to inland locations.

CMA CGM blamed some of the delays on heavy port and terminal congestion, a shortage of chassis and truck drivers, and supply-chain problems.

Samsung says CMA CGM was still responsible for moving the containers because of the store-door agreements.

Samsung says these delays led to over 121,000 charges for detention, demurrage, rail storage and other costs.

The complaint lists more than 26,000 demurrage charges and more than 94,000 detention-related charges.

Samsung is seeking at least $186 million from CMA CGM.

About $148 million of the claim is for demurrage, detention, rail storage and other related charges that Samsung says were unlawful or excessive.

The company is also seeking $8.1 million for costs it says it had to pay because of the delays. These included taking over inland transportation, hiring more staff and using off-dock container yards.

Samsung is also seeking $30 million in prejudgment interest.

The company said it may seek more money for lost revenue, employee and attorney time, legal fees and other costs. This could take the final claim above $186 million.

Samsung said it tried to settle the dispute with CMA CGM. It sent a formal demand in July 2024 and met the company in person in 2025 and 2026.

Samsung said the talks did not resolve the dispute.

The complaint also says CMA CGM used “finance holds” and suspended accounts linked to other import shipments to pressure Samsung to pay disputed demurrage bills.

Samsung said that CMA CGM demanded payment and threatened to hold back the movement, release or delivery of containers when the bills were not paid.

The company added that some of these holds involved shipments that had no outstanding issues.

Samsung also alleges that CMA CGM changed some store-door shipments to merchant haulage or container-yard (CY) movements without Samsung’s approval. This left Samsung to arrange inland transport that CMA CGM had originally agreed to handle.

Samsung has asked the FMC to order CMA CGM to pay reparations, stop the conduct it says was unlawful and provide any other relief the commission considers appropriate.

References: thelogisticnews, container news

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Tagged with

#Shipping Act
#CMA CGM
#Samsung
#Federal Maritime Commission (FMC)
#Container Shipping
#Demurrage
#Detention
#Inland Transportation
#Rail Storage
#Bill of Lading
#Sea Waybill
#Port Congestion
#Supply Chain
#Store Door Shipments
#Marine Terminal
#Cargo Release
#Chassis
#Truck Drivers
#Dispute Resolution
#Prejudgment Interest