This story begins during the pandemic.

The shipping industry is in a complete mess, with shipping space being more valuable than gold. Bed Bath & Beyond signed a long-term contract with OOCL, but OOCL only offered 70% or even lower space availability. As a result, BB&B had to scramble for space at high prices in the spot market, leading to a surge in costs.

Worse still, upon BB&B's complaint, OOCL was deemed to have engaged in "retaliation" - a letter from 2022 was deemed a threat by the judge, and subsequently, it was allocated fewer containers. The FMC administrative judge ultimately awarded OOCL $45.6 million in damages, stating that it had acted "willfully and knowingly".

But OOCL did not acknowledge it.

On May 5th, it directly filed a lawsuit against FMC in federal court, with a clear reason: you are using administrative judges hired by yourselves to hear the case, which violates the constitution! The case should be heard by a jury in court, not be decided internally by FMC.

If the court supports OOCL, FMC's approach of quickly punishing shipping companies through administrative procedures may become unfeasible. Similar disputes in the future will have to be dragged into lengthy judicial processes, greatly reducing regulatory efficiency.

Moreover, this is not just a matter for OOCL alone.

MSC, Evergreen, CMA CGM, and other shipping companies have also been complained about by BB&B and other major shippers (such as Samsung and Dollar General). In recent years, the FMC has been strengthening law enforcement and fined MSC over 20 million US dollars in January.

On one side, shippers demand that shipping companies adhere to their contracts, while on the other, shipping companies question the legality of regulatory procedures. The outcome of this dispute could potentially influence the direction of US shipping regulation in the coming years.