FMC questions Cosco on non-payment of reparations to US ag shipper

· Shipping · United States

The US Federal Maritime Commission (FMC) is questioning Cosco Shipping on its failure to pay reparations to an Oregon-based agricultural shipper. The agency says the ocean carrier will be subject to fines of up to $25,000 a day if it has determined that the lack of payment is "willful and knowing." The dispute stems from a previous FMC ruling ordering Cosco to pay reparations, which the carrier has not yet satisfied. The FMC's action underscores its heightened enforcement posture against ocean carriers that fail to comply with its orders, particularly in cases involving US exporters. The outcome could set a precedent for how the agency penalizes non-compliance and affects Cosco's US operations.

Why it matters：The FMC's enforcement action signals a tougher regulatory stance toward foreign ocean carriers, potentially raising compliance costs and legal risks for global lines operating in US trades, especially on agricultural exports.

Key points

  • The FMC says Cosco will be subject to fines of up to $25,000 a day if non-payment is deemed "willful and knowing."
  • The dispute involves reparations owed to an Oregon-based agricultural shipper.
  • The FMC's action underscores its heightened enforcement posture against ocean carriers.

Sources (original reporting)

More stories from this day