FMC Fines MSC $22.67m for Shipping Act Violations

The Federal Maritime Commission (FMC), the United States’ maritime shipping regulator, has issued a $22.67 million fine against Mediterranean Shipping Co (MSC) for three violations of the country’s Shipping Act.

The first infringement occurred between 2018 and 2020 and involved MSC billing customs brokers as notify parties for demurrage and detention charges. Investigators said the carrier applied the merchant clause in its bills of lading even though these parties were not responsible for moving the cargo.

MSC is also accused of failing to properly publish information in its tariff between 2021 and 2023, specifically by not stating how demurrage and detention fees would apply to non-operating refrigerated containers.

In addition, the FMC determined that MSC overcharged customers demurrage and detention fees associated with the use of non-operating reefers.