ports

OOCL Challenges Record $45M FMC Fine as Unconstitutional

Orient Overseas Container Line is appealing a record $45 million penalty issued by the Federal Maritime Commission, arguing the regulatory body lacked authority to hear the case. Last month, the FMC sided with Butterfly-1, the administrator for bankrupt shipper Bed Bath and Beyond, which alleged OOCL breached service contracts during the pandemic and refused fair dealings. OOCL filed in US District Court contending the FMC's administrative law judge operated without jurisdiction, claiming such disputes require jury trials in federal court rather than internal adjudication. The carrier argues the verdict is constitutionally invalid. The landmark award has drawn shipper attention as other carriers face similar Butterfly-1 claims, including BAL Container Lines for $9.25 million, HMM for $16 million, and MSC and Yang Ming. Those complaints cite identical alleged practices.