The Federal Maritime Commission (FMC) has concluded an enforcement action against MSC Mediterranean Shipping Company, S.A. (MSC), assessing civil penalties totaling $22.67 million for multiple violations of the Shipping Act.
The FMC’s Bureau of Enforcement, Investigations, and Compliance (BEIC) found that MSC engaged in improper billing practices over several years. From 2018 to 2020, MSC billed customs agents as “notify parties” for demurrage and detention charges, even though they were not responsible for moving the cargo, violating 46 U.S.C. § 41102(c).
Additionally, MSC failed to properly disclose fees for non-operating reefers (NORs) in its published tariff between 2021 and early 2023, in violation of 46 U.S.C. § 40501. The Commission determined that these violations became knowing and willful after March 2022, resulting in significant penalties.
The FMC also found that MSC overcharged customers demurrage and detention fees on NORs, with approximately 23% of such bills in 2021 containing overcharges. The Commission ruled this was not a billing error but an unreasonable practice under the Shipping Act.
The total penalties amount to $22.67 million, which will be paid to the U.S. Treasury’s General Fund, as the FMC does not retain civil penalty revenue.
Source: Federal Maritime Commission
The FMC’s Bureau of Enforcement, Investigations, and Compliance (BEIC) found that MSC engaged in improper billing practices over several years. From 2018 to 2020, MSC billed customs agents as “notify parties” for demurrage and detention charges, even though they were not responsible for moving the cargo, violating 46 U.S.C. § 41102(c).
Additionally, MSC failed to properly disclose fees for non-operating reefers (NORs) in its published tariff between 2021 and early 2023, in violation of 46 U.S.C. § 40501. The Commission determined that these violations became knowing and willful after March 2022, resulting in significant penalties.
The FMC also found that MSC overcharged customers demurrage and detention fees on NORs, with approximately 23% of such bills in 2021 containing overcharges. The Commission ruled this was not a billing error but an unreasonable practice under the Shipping Act.
The total penalties amount to $22.67 million, which will be paid to the U.S. Treasury’s General Fund, as the FMC does not retain civil penalty revenue.
Source: Federal Maritime Commission