The US branch of South Korean electronics giant Samsung Electronics has complained against compatriot liner operator SM Line to the US Federal Maritime Commission, citing unreasonable demurrage and detention charges, six months after making a similar accusation against ZIM Line.
Filed on 19 April, Samsung Electronics America’s (SEA) complaint stated that the company relied on SM Line for inland container transportation in the US but accused the liner operator of falling far short of its claims, responsibilities and obligations.
SEA said, “Beginning in approximately late-2020 to mid-2021, SM Line began repeatedly failing to properly perform its obligations for inland transportation to the inland destinations. Aware of challenges with intermodal transportation logistics, SM Line continued to transport SEA goods on store door terms under through bills of lading or sea waybills for inland delivery in the US during 2021 and 2022 and during that time repeatedly failed to properly perform its inland transportation obligations, exposing SEA to unreasonable costs, charges, delays, and other harms.”
Under store door terms, liner operators issue a bill of lading or sea waybill indicating the port at which a container is discharged and an inland “place of delivery” to which the liner operator undertakes to transport the container after the container is discharged from the vessel at the port.
SEA alleged that as a result of SM Line’s “unreasonable practices”, it had to pay detention and demurrage charges, on top of taking on the ocean carrierʼs inland transportation responsibilities to fulfill deliveries to American consumers.
SEA continued, “Notwithstanding that SM Line is responsible for the inland transportation to the named place of delivery on the sea waybill under store door terms, SM Line has forced SEA to pay demurrage and detention charges that were not the responsibility of SEA and which has required SEA to undertake significant ocean carrier responsibilities in order to facilitate the inland movement of its cargo, including arranging for inland trucking and paying SM Line’s inland terminal charges without reimbursement from SM Line.”
In October 2022, SEA made its complaint against ZIM Line and the matter is now pending the discovery stage.
SM Line did not respond to Container News’ request for comment.
Martina Li
Asia Correspondent
