FMC Finds Zim Violated U.S. Shipping Law, Orders $3.7 Million in Damages to Samsung Electronics

The Federal Maritime Commission (FMC) has concluded that Israeli carrier Zim violated the U.S. Shipping Act and must pay Samsung Electronics America (SEA) approximately $3.7 million. This ruling officially closes a complaint filed by SEA in October 2022, which accused Zim of engaging in “unreasonable practices, retaliation, refusal to deal, and improper invoicing” related to shipments of home appliances to the U.S.
The FMC found that Zim improperly shifted responsibility for demurrage and detention charges during store-door moves, leading to disputes over these costs. The case was particularly complex, involving 9,984 separate charges across 2,980 containers shipped from South Korea to the U.S. between July 2019 and December 2022.
Despite the significant number of charges, the FMC determined that Zim’s practice of imposing cargo holds—delaying shipments and increasing demurrage—was unreasonable and unjustified under the Shipping Act. The agency noted that Zim’s claims of a “valid expanded maritime lien” were insufficient to justify these practices, especially given numerous billing errors.
While the court awarded Samsung approximately $3.7 million—less than the $12 million originally demanded—it emphasized that it was unreasonable for Zim to shift liability solely because a preferred or nominated trucking company was employed. However, because Samsung could not prove responsibility for specific charges, and some delays resulted from customer issues, Zim’s charges for store-door and carrier haulage were deemed justified.
This ruling underscores the importance of the FMC’s dispute resolution process, especially for shippers facing complex billing practices in an evolving regulatory environment.