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FMC Slaps MSC With $22.7M Fine Over Billing Violations
Yahoo Finance· 2026-02-02 13:00
Core Viewpoint - The Federal Maritime Commission (FMC) has imposed a $22.7 million fine on Mediterranean Shipping Company (MSC) for three violations of the U.S. Shipping Act, focusing on improper billing practices and lack of transparency in rate disclosures [1][2]. Group 1: Violations and Penalties - The FMC's investigation, which began in August 2023, identified three main issues with MSC's billing practices, including incorrect invoicing of customs brokers and forwarders for demurrage and detention (D&D) fees from 2018 to 2020 [2][3]. - MSC was found to have used a broad "merchant clause" in its bill of lading, which improperly included parties with no beneficial cargo interest, such as freight forwarders and customs brokers, in the billing for D&D fees [3][4]. - The FMC determined that billing parties without control over container pickup or return does not promote freight fluidity, leading to 13 violations being upheld and a cease-and-desist order issued against MSC [5]. Group 2: Tariff Publication Issues - Another aspect of the penalties was due to MSC's failure to clearly state applicable rates or rules for non-operating reefers (NORs) in its published tariffs, which are required documents listing rates, rules, and extra charges for shippers [6].