U.S. FMC Threatens Chinese Shipping Firm With Up To $16.7 Million Fine Over Unpaid Award

COSCO Shipping could face a fine of up to $16.7 million in the US after taking 223 days to pay a $24,328.80 award to a customer, the Federal Maritime Commission (FMC) said.

The FMC issued an order to show cause on October 2, asking COSCO to explain why it should not be fined for failing to pay the amount within the deadline set by the commission.

The case began with a complaint filed by Bridgewell Agribusiness in July 2025. The company had asked for compensation over demurrage and detention charges it paid on import containers in 2022.

Bridgewell said the charges imposed by COSCO were against FMC regulations.

The FMC later ordered COSCO to pay $24,328.80 by January 20, 2026. But Bridgewell did not receive the money until August 31. The FMC said Bridgewell sent several requests for the payment. The commission also contacted COSCO during this period.

As a result, COSCO was not in compliance with the FMC order for 223 days, the commission said.

Under US federal rules, the FMC can impose a penalty of up to $14,988 for every day a company does not comply. If the violation is found to be “knowing and willful,” the maximum daily penalty rises to $74,943.

For 223 days, that could put COSCO’s penalty at between about $3.345 million and $16.725 million, according to the FMC.
The possible fine is far higher than the original $24,328.80 award.

The FMC said COSCO had been reminded several times over several months about the unpaid amount but still did not make the payment.

The commission said this raised questions about whether COSCO’s actions were knowing and willful.

The FMC said it has the authority to impose civil penalties when companies do not pay reparations awards as required.

It also referred to US Supreme Court precedent and recent federal court decisions dealing with penalties for knowing and willful violations.

According to the commission, these penalties are meant to discourage companies from similar conduct in the future.

The FMC also referred to a recent US Court of Appeals decision in another case. The commission said the court recognised that it has a strong interest in protecting the integrity of its procedures.

The court also recognised that ignoring binding FMC orders can weaken the commission’s authority, according to the FMC.

The commission added that a common carrier such as COSCO cannot retaliate or take other unfair action against a shipper because it has taken action, including filing a complaint.

The dispute involved demurrage and detention charges on import containers from 2022.

Bridgewell filed its complaint with the FMC in July 2025. The commission later ordered COSCO to pay $24,328.80 by January 20, 2026. Bridgewell received the money on August 31.

The FMC said the payment was delayed for 223 days despite requests from Bridgewell and contacts from the commission.

The FMC said a higher penalty could be appropriate, within the legal limits, if it was needed to discourage similar violations.

COSCO could therefore face a penalty of about $3.34 million to $16.7 million, depending on how the violation is treated.

The original payment has now been made, but the FMC’s case against COSCO is not over.

COSCO must explain why it should not face civil penalties for the 223 days it remained out of compliance with the commission’s order.

References: thelogisticnews, joc