QVC and Cornerstone File FMC Complaint Against ONE for Alleged Failure to Fulfill Contract

QVC and Cornerstone Brands filed a complaint against Ocean Network Express (ONE) with the US Federal Maritime Commission, alleging that ONE violated the Shipping Act of 1984 by failing to honor its service commitments and reserving space for higher-paying customers, resulting in QVC and Cornerstone having to pay high spot rates to ship their goods. The complaint claims that ONE's actions contributed to inflationary container rates and cost QVC and Cornerstone over $18 million in shipping costs.

Two prominent entities, QVC and Cornerstone Brands, have filed a complaint with the U.S. Federal Maritime Commission (FMC) against the freight carrier Ocean Network Express (ONE). The complaint alleges that ONE violated the Shipping Act of 1984 by failing to honor its service commitments and reserving cargo space for higher-paying customers, resulting in QVC and Cornerstone having to pay high spot rates to ship their goods [1].

The complaint, filed on June 11, 2025, details that ONE engaged in practices that led to shortages in contracted cargo space. According to QVC, ONE carried only approximately 47.75 percent of its service commitment, resulting in a shortfall of at least 627 forty-foot equivalent units (FEUs). This shortfall forced QVC to pay higher rates from alternative carriers, costing the company over $7.7 million during the 2021-2022 shipping year [1].

Cornerstone Brands faced a similar situation, with ONE carrying only approximately 42.4 percent of its service commitment, resulting in a shortfall of at least 662 FEUs. This led Cornerstone to pay nearly $10.5 million to ship goods overseas with another carrier [1].

The complaint also alleges that ONE charged unjust demurrage and detention fees. Cornerstone paid $978,784 in such fees, while QVC paid $797,835. The companies argue that these charges were assessed during periods of time when such charges were not just or reasonable due to external factors such as congestion at ports and lack of equipment [1].

QVC and Cornerstone Brands have requested a hearing in Washington, D.C., seeking reparations for the alleged unlawful conduct and an investigation into ONE's practices. They also seek an order to put an end to ONE's alleged illegal conduct [1].

ONE did not respond to requests for comment from Sourcing Journal [1].

References:
[1] https://finance.yahoo.com/news/qvc-cornerstone-file-fmc-complaint-174256329.html