Appeals Court Backs FMC on Detention Fees in Evergreen Case

April 28, 2026

A federal appeals court on Tuesday, April 28, 2026, upheld a Federal Maritime Commission (FMC) order that found Evergreen acted unreasonably when it billed a trucker for container detention during a port closure. The U.S. Court of Appeals for the District of Columbia Circuit denied the ocean carrier’s petition for review in a unanimous decision written by Judge Harry Edwards.

The amount in dispute was small: $510. According to gCaptain, the case goes back to a 2020 shipment for Yamaha Motor Company that moved through the Port of Savannah. A COVID-related plant shutdown delayed the trucker’s ability to pick up the container, and a planned three-day port closure then prevented its return once it was available. Evergreen assessed detention for those days anyway. The FMC ruled the charge unreasonable under the Shipping Act, reasoning that a fee cannot work as an incentive to return equipment sooner when return is not possible.

Evergreen argued that the Commission had placed a broader “freight fluidity” concept ahead of the incentive principle in its 2020 interpretive rule on detention and demurrage. The court did not agree. It endorsed the Commission’s view that the primary purpose of detention charges is to promote freight fluidity, and that charges imposed when empty containers cannot be returned are “likely to be found unreasonable.” In its own summary of the decision, the FMC adds that a carrier that defends a fee as compensation for its costs has to provide evidence to support that.

What it means for shippers

  • Closure days are worth a second look. Detention or demurrage billed for days when a terminal was closed, or when equipment could not physically be picked up or returned, is now on weaker ground. The ruling does not cancel such charges automatically. They still have to be disputed with the carrier.
  • Documentation decides disputes. Keep terminal closure notices, appointment records, gate transaction times and any emails showing that a return or pickup was attempted. The Savannah case turned on the facts of what the trucker could and could not do.
  • Review invoices promptly. Compare the billed days against the terminal calendar and your appointment history as soon as an invoice arrives, and ask your carrier or forwarder how and by when a dispute must be filed.
  • Free time still matters. The decision deals with situations where return was impossible. Ordinary late pickups and returns remain chargeable, so planning drayage around the last free day is still the cheapest protection.

This is general information, not legal advice. For a specific invoice, check with your carrier, forwarder or counsel.

Go Trucking Services handles container drayage, including LA Harbor pickup and delivery, alongside ocean freight. See our drayage service and ocean freight service, or request a quote on the home page.

Sources:

Image: Martin Dörsch, via Wikimedia Commons (CC0).

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