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How FMC’s Incentive Principle Limits Weekend Detention Charges
Episode 24
Friday, 1 May, 2026
A $500 bill shouldn’t be able to move markets, but that’s exactly why we wanted to unpack the Evergreen detention case and the DC Circuit’s latest word on the FMC’s incentive principle. We walk through the real-world question hiding inside a tiny invoice: if a terminal is closed for a holiday weekend and the gates are literally shut, can detention charges still be “reasonable” under the Shipping Act? I break down how the Federal Maritime Commission ties detention and demurrage to freight fluidity, why the court pushed for fact-driven analysis, and what this means for weekend charges, holiday closures, return restrictions, and any scenario where equipment cannot physically move.Then we shift to a much bigger dollar headline with major shipper implications: the initial FMC decision awarding more than $46.5 million in reparations to Bed Bath and Beyond’s successor against OOCL. We talk through the claims and findings around service contracts, minimum quantity commitments (MQCs), space allocation, premium pricing, refusal to deal, and retaliation, plus why this ruling may add structure to how MQC failures can be treated as potential Shipping Act violations rather than just private contract disputes.We close by connecting global policy to daily logistics. The FMC Chairman’s appearance at the International Maritime Organization (IMO) MEPC for net zero framework talks raises a practical concern: new vessel compliance costs do not stay on the vessel, they show up in surcharges, freight rates, and the prices paid by importers, exporters, retailers, and consumers. And even with DHS funding restored, we explain why the US Coast Guard cannot be collateral damage in political fights if we’re serious about maritime security, port operations, and supply chain resilience. Subscribe, share this with your team, and leave a review so more people can follow the rules that shape how ocean shipping really works.Send us Fan MailC-Suite PerspectivesElevate how you lead with insight from today’s most influential executives.Listen on: Apple Podcasts SpotifySupport the show🎙️ Thanks for tuning in to By Land and By Sea powered by The Maritime Professor®! If you enjoyed today’s episode, be sure to subscribe ⭐ and leave a review 📝 - it really helps others find the show.📚 Want to go deeper? Check out our live webinars, on-demand e-courses, and our Just-in-Time Learning™ sessions -- short, plain-language lessons (30 minutes or less) built for supply chain pros who need quick clarity.🚢 Looking for something tailored? We also provide custom corporate trainings designed to meet your team’s needs.⚓ Learn more and explore past episodes at: www.TheMaritimeProfessor.com/podcast
