As profit margins in cross-border e-commerce continue to shrink, cost control at every operational stage becomes increasingly critical. Hidden charges like demurrage fees and unfulfilled capacity commitments from shipping companies are emerging as significant financial burdens. South Korea's HMM, one of the world's largest container carriers, now faces a $16 million lawsuit that highlights these growing tensions.
HMM Confronts Dual Challenges: Demurrage Fees and Capacity Commitments
Butterfly-1, the rebranded entity following Bed Bath & Beyond's bankruptcy restructuring, has filed suit against HMM seeking $16 million in damages. The complaint alleges the carrier collected $4 million in unreasonable demurrage fees over 14 months while failing to meet contractual capacity obligations, forcing Butterfly-1 to incur additional expenses and suffer $39.7 million in lost profits.
This litigation follows similar actions against Orient Overseas Container Line (OOCL) and Evergreen Marine, signaling escalating disputes between shippers and carriers regarding detention charges and service reliability.
Carriers Cite Force Majeure in Their Defense
Shipping lines typically defend such claims by pointing to pandemic-related disruptions and port congestion as force majeure events. While these factors did create unprecedented supply chain bottlenecks, cargo owners argue carriers should bear proportional risk—particularly after collecting record-high freight rates during the crisis period.
Port of New York and New Jersey Maintains Steady Operations
Despite global supply chain volatility, the Port of New York and New Jersey handled 509,124 TEUs in November 2025, maintaining its position as America's second-busiest container port. Year-to-date volumes reached 5.52 million TEUs through November, with truck traffic across six port authority crossings remaining stable at 10.1 million eastbound vehicles for the month.
The port recently extended Maher Terminals' lease for 33 years, reinforcing its role as a critical supply chain node. This operational consistency demonstrates how efficient port management can mitigate broader logistical challenges.
USPS Packaging Rules Threaten to Raise Costs for E-Commerce Sellers
Starting July 1, 2026, the United States Postal Service will eliminate size exemptions for commercial packages, requiring precise dimensional data on all parcels regardless of volume. The policy change removes the current threshold (≤1 cubic foot or ≤22 inches in length) that allowed simplified declarations.
Small and medium-sized cross-border sellers using platforms like Amazon, eBay, or ShipStation will face particular challenges. Each package with discrepancies between declared dimensions and automated verification measurements will incur $1.50 penalties plus potential rate adjustments—costs likely to cascade through supply chains.
Compliance Strategies for Affected Businesses
First-Class Mail parcels and return services remain exempt from the new requirements. With the public comment period open until February 9, 2026, merchants should implement standardized measurement systems now to ensure accurate declarations. Proactive adaptation to these requirements will help avoid unexpected surcharges as enforcement begins.
The evolving regulatory landscape—from maritime contract disputes to postal reforms—underscores how operational precision and compliance awareness have become essential for sustaining profitability in international e-commerce.