U.S. Court Rules Shipping Companies Charging Detention Fees During Port Closures Is Illegal
A U.S. court upheld the Federal Maritime Commission (FMC) ruling that shipping companies charging detention fees during port closures is unreasonable, providing legal basis for cross-border sellers against unreasonable logistics costs.
What are the key facts?
- 1Court dismissed Evergreen Marine's appeal
- 2Determined detention fees during port closures as unreasonable
- 3Supports FMC interpretation of detention fee rules
What happened?
The Federal Circuit Court of Appeals in Washington, D.C., dismissed Evergreen Marine's appeal, upholding FMC's original ruling that charging detention fees during port closures on holidays at West Coast ports violates shipping law. The court emphasized that detention fees should facilitate cargo movement rather than serve as a profit mechanism.
What does this mean for cross-border sellers?
Sellers who face enforced detention fees during port congestion or closures can file complaints through the FMC complaint mechanism to seek recovery.