MSC Shipmanagement Fined $6m Over Charleston Engine Control Failure

MSC Shipmanagement has received a $6 million fine and been placed on probation for four years after admitting that it concealed a dangerous engine-control issue aboard the MSC Michigan VII and obstructed the US investigation that followed.

The Cyprus-based ship operator pleaded guilty to failing to notify the US Coast Guard about the hazardous condition and to obstructing an investigation conducted by the Coast Guard and the National Transportation Safety Board (NTSB).

As part of the penalty, MSC Shipmanagement is also required to conduct a root-cause analysis examining the machinery issues aboard the vessel while

Chief Engineer Fernando San Diego San Juan, who had previously pleaded guilty to the same offenses, was fined $2,000.

The case relates to an incident involving the MSC Michigan VII in Charleston Harbor in June 2024, when the containership experienced an uncontrolled transit through the harbor.

The vessel was heading outbound along the Cooper River when its crew lost control of the main engine. It accelerated to approximately 16 to 17 knots, leading authorities to evacuate the Arthur Ravenel Jr Bridge, clear nearby beaches and remove other traffic from the shipping channel.

Despite the engine problem, the pilot successfully navigated the vessel beneath the bridge and into open water. However, the ship’s wake injured two recreational boaters and caused damage to vessels and port infrastructure. Total losses were estimated at more than $500,000.

MSC Shipmanagement and San Juan acknowledged that members of the engineering team had been manually altering the linkage rod connecting the engine governor with the fuel rack after the engine failed to respond correctly to commands from the bridge. None of the engineering crew involved was qualified to perform the work. Nuts at both ends of the linkage rod had been loosened to make adjustments easier, while locking washers designed to secure the assembly had been removed. During the vessel’s outbound transit, the linkage became disconnected, preventing the main engine from reducing speed.

San Juan subsequently denied that the engineering crew had made adjustments to the rod or that there had been delays between commands from the bridge and the engine’s response. He also instructed three other crew members to provide investigators with the same version of events.

Following the incident, the Coast Guard detained the MSC Michigan VII for approximately six weeks. The vessel was eventually permitted to depart Charleston with an escort of three tugboats.

The NTSB’s investigation into the probable cause of the incident remains ongoing.