COSCO Charged Unfair Detention and Demurrage, Motor Carrier Says
International Express Trucking (IXT) accused COSCO Shipping Lines of charging unfair per diem charges during times when there was a chassis shortage, port congestion or a lack of return appointments, the motor carrier said in a complaint filed with the Federal Maritime Commission. In the complaint, dated May 7, IXT said COSCO from 2022 to 2023 charged the motor carrier $75,725 in per diem charges and didn't include relevant information, such as ports of discharge or the date the container had been made available, in the charges.
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IXT, a motor carrier, accused COSCO of failing to establish and observe "just and reasonable practices" in violation of the Ocean Shipping Reform Act of 2022. COSCO also assessed unfair detention charges that didn't promote "freight fluidity," and refused to extend free time or waive or reduce detention charges for containers that were "rejected for return by the designated termination location," the motor carrier said.
For one of the invoices, IXT said it couldn't return the container because of poor weather conditions and COSCO agreed to have the charges waived. However, COSCO hasn't waived the charges for that specific invoice, the motor carrier said.
The motor carrier made "numerous unsuccessful attempts" to resolve the matter with COSCO prior to filing the complaint, IXT said. It has had direct communication with COSCO since 2022 and has communicated with COSCO through counsel "for several months," IXT said.
The motor carrier sent a demand letter to COSCO relating to these charges in February and COSCO has "persisted" in refusing to waive the charges, IXT said. Because of this, IXT didn't use the FMC's alternative dispute resolution procedures prior to filing the complaint, IXT said.
IXT is asking the commission to investigate and require COSCO to pay it reparations for the alleged conduct. COSCO didn't respond to our request for comment.