Shipping Desk:
The world’s largest container shipping company, Mediterranean Shipping Company (MSC), has been fined USD 22.67 million for multiple violations of the United States Shipping Act. In Bangladeshi currency, the penalty amounts to approximately BDT 2.77 billion. The US Federal Maritime Commission (FMC), the country’s maritime regulatory authority, recently announced its final decision to impose the civil penalty following a prolonged investigation that began in August 2023.
According to the FMC, the fine was imposed after evidence confirmed that MSC repeatedly breached federal maritime regulations over several years. The violations primarily involved unreasonable billing practices, failure to disclose mandatory tariff information, and improper charges imposed through third-party agents.
A major portion of the penalty, amounting to USD 13.145 million, was linked to wrongful and excessive billing practices. Throughout 2021, MSC charged customers demurrage and detention fees for non-operational refrigerated containers, even when the containers were not in active use. The investigation found that in nearly 23 percent of cases, MSC charged fees beyond what was permitted under the law. The commission concluded that these charges were unreasonable and violated the Shipping Act.
An additional USD 9.46 million fine was imposed for MSC’s failure to publish tariff information for these specialized containers between 2021 and 2023. The FMC stated that from March 2022 onward, the company’s actions were classified as knowing and willful violations, significantly increasing the severity of the penalty.
The commission also upheld a separate fine of USD 65,000 related to unreasonable billing imposed on customs agents between 2018 and 2020. Regulators noted that shifting liability to agents in such cases was inconsistent with fair shipping practices and federal regulations.
The FMC said the number of complex enforcement cases has increased sharply since the global supply chain disruptions caused by the COVID-19 pandemic. To expedite the resolution of such cases, the commission has appointed two experienced administrative law judges from the US Department of Health and Human Services on a special assignment extending through September 2026.
In 2024, regulators had initially proposed a penalty of nearly USD 63 million against MSC. However, following extensive investigation, legal review, and deliberation, the final fine was reduced to the current amount.
Maritime experts view the penalty as a significant precedent for enforcing transparency and accountability in the global shipping industry. The FMC emphasized that the action sends a strong message to carriers operating in US trade lanes that violations of shipping regulations will result in substantial financial consequences.
