FMC Complaint Sees Importer Take Aim at Hapag-Lloyd over Covid-Era D&D Fee

Why It Matters

The claim underscores the financial risk carriers pose to shippers through aggressive D&D billing, prompting tighter regulatory scrutiny and influencing how importers negotiate container handling. It also signals potential shifts in FMC enforcement under the current administration.

Key Takeaways

• Hapag-Lloyd charged $3,600 per TEU in D&D fees.
• Orleans International seeks over $1.1 million in damages.
• FMC complaints peaked in 2023‑24, now declining.
• Small shippers deterred by high claim costs.
• Trump administration may influence FMC enforcement.

Pulse Analysis

The pandemic exposed systemic weaknesses in global supply chains, with port congestion driving carriers to adopt detention and demurrage fees as a revenue buffer. While D&D charges are a legitimate tool to incentivize timely cargo movement, the lack of transparency during the COVID‑era led many shippers to question the fairness of the assessments. Industry analysts note that carriers like Hapag‑Lloyd leveraged limited yard space and equipment shortages to impose steep daily rates, often without clear justification, prompting regulators to scrutinize the practice more closely.

In the current dispute, Orleans International alleges that Hapag‑Lloyd’s stacking practices effectively trapped its containers, forcing the importer to incur $3,600 per TEU in daily fees and resulting in product spoilage. The $1.1 million claim reflects not only the direct costs of D&D but also ancillary losses such as reduced inventory and lost sales. Although the claim is sizable, it is not unprecedented; the FMC saw a surge of similar filings in 2023‑24, many of which settled for multi‑million settlements. The outcome of this case could set a benchmark for what constitutes reasonable D&D charges in future litigation.

Looking ahead, the FMC’s enforcement posture may evolve under the Trump administration, which could either tighten or relax oversight depending on broader trade policy goals. Small shippers, who often shy away from filing due to the comparable cost of litigation, may continue to absorb unjust fees unless clearer guidelines emerge. Stakeholders are advised to audit container handling contracts, negotiate explicit D&D clauses, and maintain detailed documentation to strengthen any future claims. As the industry stabilizes, balancing carrier revenue recovery with equitable shipper treatment will remain a focal point for regulators and market participants alike.