Hapag-Lloyd's Container Return Procedures Violate Shipping Laws, Logistics Company Says

Ocean carrier Hapag-Lloyd provided motor carrier S.P.F. Logistics of Long Beach, California, with inadequate opportunities to return empty containers, forcing SPF to store the containers at its own expense, according to a complaint filed July 16 with the Federal Maritime Commission.

SPF said it pulled full containers from Hapag-Lloyd's terminals from about September 2021 through November 2021. When seeking to return the empty containers, Hapag-Lloyd would often reply that no locations were accepting them or that empty returns were only allowed on a “dual” transaction basis, in which a motor carrier is required to pick up a full container at the same time it drops off an empty container.

Hapag-Lloyd charged detention fees if SPF couldn't get empty containers out of storage when return appointments became available, even though Hapag-Lloyd's actions forced SPF to place the containers in storage, SPF said. Hapag-Lloyd generally gave SPF two days to return empty containers after pulling full ones from Hapag-Lloyd’s terminals, and it charged $400 a day if empty containers weren't returned in time.

“Working diligently with the availability allowed by Hapag, SPF has received substantial detention invoices from Hapag which have been disputed without success,” the complaint says. Additionally, Hapag-Lloyd has "commenced suit against SPF in an effort to collect these unlawful detention charges."

SPF added that the "storage charges related to Hapag’s actions are estimated to be at minimum $57,750.00."

In filing its complaint, SPF “seeks reparations, equitable and other relief” for Hapag-Lloyd’s “failure to establish, observe and enforce just and reasonable practices related to receiving, handling, storing and delivering property,” which it said violated the Shipping Act. It said Hapag-Lloyd's actions are "not limited to the Ports of Long Beach and Los Angeles" and have also taken place at the Port of Oakland.

Hapag-Lloyd didn't immediately respond to a request for comment.