MSC Mediterranean Shipping Company was fined $22.67 million by the FMC for multiple violations of the Maritime Act amid rising post-pandemic complaints.
The U.S. Federal Maritime Commission (FMC) has imposed a total fine of $22.67 million on MSC Mediterranean Shipping Company for violating various provisions of the Maritime Act. The penalty was recorded as part of the FMC's tightening of enforcement activities in response to increased complaints following the pandemic.
The investigation conducted by the Commission's Bureau of Enforcement, Investigations, and Compliance (BEIC) was initiated in August 2023. As a result of the investigation, three separate violations related to the fees charged by MSC to shippers were identified, and these decisions were approved or revised by the FMC.
The highest penalty was related to MSC's unjust collection of demurrage and detention (D&D) fees from customers for non-operational refrigerated containers. The Commission determined that this practice continued throughout 2021 and was not merely a billing error, but rather an 'unreasonable practice.' According to the review, MSC charged customers excessive fees on approximately 23% of invoices for non-operational refrigerated containers in 2021. A total fine of $13.145 million was imposed under this heading, with $5,000 for each violation.
The second violation also pertained to non-operational refrigerated containers. The FMC found that MSC did not clearly specify the fees applicable to these containers in the tariffs published during the 2021-2023 period. While the Commission accepted the Administrative Law Judge's finding that the violation began in 2021, it characterized the period from March 2022 to 2023 as 'knowing and intentional violations.' In this context, an additional fine of $9.46 million was imposed on MSC.
The third violation extends back to the 2018-2020 period. It was determined that MSC billed customs agents, who were not actually involved in the transportation process, as the 'party to be notified' for demurrage and detention fees based on the 'commercial goods' provision in the bills of lading. The FMC approved the Administrative Law Judge's decision regarding this practice and imposed a fine of $65,000 on MSC.
The FMC stated that there has been a significant increase in the number of cases and the complexity of files following disruptions in the supply chain during the pandemic. To cope with the increased workload, the Commission temporarily assigned two additional Administrative Law Judges as of January 26. Judges Jamie Mendelson and Debra Tesh were transferred from the U.S. Department of Health and Human Services to the FMC's Office of Administrative Law Judges and will serve until September 2026.
Source: SeaNews Türkiye
