FMC Threatens COSCO with Fines of Up to $16.7 Million Over Late Payment

The U.S. Federal Maritime Commission (FMC) issued a 'Show Cause' order against Chinese carrier COSCO for taking more than seven months to pay a $24,328.80 reparation award to the company Agribusiness Holdings. According to the regulator, the carrier's conduct could be classified as a knowing and willful violation, which would expose COSCO to civil penalties ranging from $3.345 million to $16.725 million.

The dispute dates back to demurrage and detention charges that, according to Marine Insight and Splash247, involved Bridgewell Agribusiness, reportedly operating under the name Agribusiness Holdings, for import containers from 2022. The FMC determined that COSCO had not properly issued the corresponding invoices and ordered payment by January 20, 2026. The Maritime Executive, however, links the claim to demurrage and detention invoices issued in 2025. COSCO failed to make the payment by that date, and according to Marine Insight and Splash247, the funds only reached Bridgewell on August 31, 2026, after repeated contacts from the company and the regulator itself.

The non-compliance lasted 223 days, as confirmed by all three sources. Under current rules, the FMC can impose inflation-adjusted penalties of $14,988 per day of violation, a figure that rises to $74,943 per day if the violation is found to be knowing and willful. Applied to the 223-day delay, this puts COSCO's exposure at approximately $3.345 million to $16.725 million, well above the original amount of the reparation award.

The FMC ordered COSCO to file a submission by December 1, 2026, explaining why it should not be sanctioned, in addition to turning over all communications held with the complainant regarding payment of the reparation award. The regulator cited a recent ruling by a U.S. Court of Appeals that recognized the FMC's interest in preserving the integrity of its proceedings, warning that disregarding its binding orders could undermine its authority. According to the sources, a final decision by the Commission is expected by April 30, 2027, though that deadline could be extended by order of the FMC itself.