ports

OOCL Challenges Record $45M FMC Fine as Constitutional Violation

Orient Overseas Container Line is appealing a record $45 million penalty imposed by the Federal Maritime Commission, arguing the agency lacks constitutional authority to hear the case. OOCL filed in US District Court challenging the FMC's administrative process, contending that such disputes should be decided by federal juries rather than agency judges. The fine stemmed from a complaint by Butterfly-1, the administrator for bankrupt shipper Bed, Bath and Beyond, which alleged OOCL breached service contracts during the pandemic. The carrier's legal challenge raises questions about FMC enforcement powers. The regulator is pursuing similar complaints against HMM, MSC, Yang Ming, and BAL Container Lines. Industry observers view the record award as signaling aggressive regulatory enforcement against carriers accused of exploiting pandemic disruptions.