The US Federal Maritime Commission (FMC) is considering imposing a fine of up to $16.7 million on Cosco. The shipping company is alleged to have paid compensation of around $24,000 more than seven months late.
The FMC has asked Cosco to comment on possible sanctions relating to the delayed implementation of a regulatory decision. According to media reports, the matter concerns compensation of $24,328.80 plus interest payable to Agribusiness Holdings, which operates under the name Bridgewell Agribusiness.
The proceedings stem from a dispute over demurrage and detention charges. The original decision had found that Cosco had not issued the relevant invoices correctly. The FMC declared the compensation decision final in January and set a payment deadline of 20 January 2026. According to the report, Cosco allowed this deadline to pass. Despite repeated enquiries from the complainant and, later, from the authority, the payment remained 223 days overdue.
FMC investigates deliberate breach
For breaches, the FMC can impose inflation-adjusted fines of up to $14,988 per day. In the case of breaches committed knowingly and intentionally, the potential daily rate rises to up to $74,943. For the 223-day delay, this results in a calculated maximum amount of around $3.3 million. No fine has been imposed to date.
From the FMC’s perspective, the repeated reminders regarding the outstanding payment raise the question of whether Cosco knowingly and wilfully breached the order. Furthermore, the authority sees a fundamental need for clarification regarding compliance with its binding decisions.
Cosco must now, by 1 December, explain why no fine should be imposed. Furthermore, the shipping company is required to submit all correspondence relating to the late payment. A final decision by the FMC is currently scheduled for 30 April 2027.
