MSC Faces Potential $63M Fine for Shipping Act Violations

MSC Faces Potential $63M Fine for Shipping Act Violations

The Mediterranean Shipping Company (MSC) is under scrutiny by the Federal Maritime Commission (FMC) for alleged breaches of the US Shipping Act, potentially leading to a hefty fine of $63 million. Following an investigation initiated by the FMC in August 2023, prompted by customer complaints dating back to 2017, the commission uncovered 18 violations linked to MSC’s utilization of a “merchant clause” for third-party billing.

Additionally, over 3,000 contraventions regarding non-operating refrigerated containers were identified. The FMC’s report addressed various issues, including third-party billing practices, tariffs for non-operating reefers, and adherence to published rates. Seeking civil penalties amounting to at least $63,256,853, the commission also recommended the issuance of a cease and desist order against MSC. The report has been submitted to the administrative law judge at the FMC. While MSC has yet to respond, it is anticipated that the company will appeal the findings.

Source: Alphaliner

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