Samsung Demands $186m From CMA CGM Over COVID-19 Shipping Charges

 

Samsung Electronics America is seeking at least $186 million from CMA CGM in a complaint filed with the US Federal Maritime Commission (FMC), accusing the French shipping giant of imposing millions of dollars in container-related charges arising from supply chain delays that Samsung says were beyond its control.

The FMC served the complaint on 1 September, opening a case stemming from the COVID-19 pandemic-era supply chain crisis and CMA CGM’s handling of Samsung cargo moving through US ports and inland transport networks.

At the centre of the dispute are “store door” shipments, under which CMA CGM was responsible for transporting Samsung’s containers from overseas factories through US ports and on to inland destinations.

Samsung said the arrangement began to break down around 2020 as port congestion, chassis shortages and trucking disruptions snarled supply chains.

According to the complaint, CMA CGM repeatedly failed to complete inland moves, leaving Samsung to absorb mounting demurrage, detention, rail storage and other charges.

Samsung said it ultimately paid more than 121,000 demurrage, detention and associated charges.

The complaint does not dispute that CMA CGM faced significant transportation challenges during the pandemic.

Samsung’s argument was that responsibility for those disruptions rested with CMA CGM under the terms of its store-door contracts.

When Samsung challenged the charges, CMA CGM cited chassis and trucker shortages, as well as port and terminal congestion, according to the complaint.

Samsung argued that the conditions were outside its control and that CMA CGM nevertheless refused to waive many of the resulting charges.

Samsung also alleged that CMA CGM converted some prepaid store-door shipments into “container yard” moves, leaving Samsung to arrange the remaining inland transportation.

It said some of those conversions allegedly took place after containers had already begun accumulating demurrage.

It claimed that in one case, a container shipped from Busan, South Korea, through Long Beach to The Colony, Texas, allegedly incurred $162,799 in rail storage charges after its store-door move was terminated at a rail ramp.

In another case, several containers were said to have been held at an inland rail ramp for more than two weeks because of a chassis shortage.

Samsung further alleged that CMA CGM acknowledged the shortage but still required it to pay rail storage charges before the containers could be moved. It put the resulting charges at nearly $3.75 million.

The complaint also accused CMA CGM of using cargo and credit holds to pressure Samsung into paying disputed bills.

CMA CGM has 25 days from service of the complaint to file its answer.

The case has been assigned to the FMC’s Office of Administrative Law Judges.

An initial decision is due by 1 September 2027, followed by a final Commission decision by 15 March 2028.