FMC Complaint Filed: Orleans International vs Hapag Lloyd
Summary
The Federal Maritime Commission (FMC) has received a complaint filed by Orleans International, Inc. against Hapag Lloyd AG. The complaint alleges violations of the Shipping Act of 1984 related to the assessment of demurrage and detention charges under circumstances beyond the complainant's control.
What changed
Orleans International, Inc. has filed a complaint with the Federal Maritime Commission (FMC) against Hapag Lloyd AG, alleging violations of 46 U.S.C. 41102(c), 41104(a)(10), and 46 CFR 545.5. The core of the complaint centers on the assessment of demurrage and detention charges by Hapag Lloyd during periods when Orleans International's ability to pick up or return containers was constrained due to factors beyond its control. The FMC has jurisdiction over this matter pursuant to the Shipping Act of 1984.
Respondent Hapag Lloyd AG must file an answer to the complaint within 25 days of service. This proceeding has been assigned to the Office of Administrative Law Judges, with an initial decision due by March 19, 2027, and a final Commission decision by October 4, 2027. Compliance officers should monitor this case for potential implications regarding demurrage and detention charge assessments and ensure their organizations have robust processes for managing such charges when external constraints are present.
What to do next
- File an answer to the complaint within 25 days of service.
- Monitor the FMC proceeding for potential precedent on demurrage and detention charges.
Source document (simplified)
Content
Notice is given that a complaint has been filed with the Federal Maritime Commission (the “Commission”) by Orleans International,
Inc. (the “Complainant”) against Hapag Lloyd AG (the “Respondent”). Complainant states that the Commission has subject-matter
jurisdiction over the complaint pursuant to the Shipping Act of 1984, as amended, 46 U.S.C. 41301 et seq., and personal jurisdiction over Respondent as a vessel-operating ocean common carrier, as defined in 46 U.S.C. 40102(18).
Complainant is a corporation existing under the laws of the state of Michigan with its principal place of business located
in Farmington Hills, Michigan.
Complainant identifies Respondent Hapag Lloyd AG as a company existing under the laws of the Federal Republic of Germany with
its principal place of business located in Hamburg, Germany, whose agent in the United States is Hapag-Lloyd (America) LLC,
a limited liability company existing under the laws of the state of Delaware with its principal place of business located
in Atlanta, Georgia.
Complainant alleges that Respondents violated 46 U.S.C. 41102(c) and 41104(a)(10), and 46 CFR 545.5. Complainant alleges these
violations arose from the assessment of demurrage and detention charges during periods of time in which Complainant's ability
to pick up or return containers was constrained due to circumstances beyond its control, and other acts or omissions of Respondent.
An answer to the complaint must be filed with the Commission within 25 days after the date of service.
The full text of the complaint can be found in the Commission's electronic Reading Room at https://www2.fmc.gov/readingroom/proceeding/26-04/. This proceeding has been assigned to the Office of Administrative Law Judges. The initial decision of the presiding judge
shall be issued by March 19, 2027, and the final decision of the Commission shall be issued by October 4, 2027.
(Authority: 46 U.S.C. 41301; 46 CFR 502.61(c))
Served: March 19, 2026. David Eng, Secretary. [FR Doc. 2026-05647 Filed 3-20-26; 8:45 am] BILLING CODE 6730-02-P
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