FMC Assesses $22.67 Million Civil Penalty Against MSC

The Federal Maritime Commission (FMC) has imposed civil penalties amounting to $22.67 million on Mediterranean Shipping Company (MSC) for violations of the Shipping Act of 1984. The penalties stem from findings that MSC engaged in practices related to demurrage and detention charges that were contrary to the Act, impacting shippers and the supply chain. This enforcement action underscores the FMC's commitment to ensuring fair and reasonable practices within the maritime shipping industry.

Regulated entities, particularly ocean common carriers and NVOCCs, should review their practices concerning demurrage and detention charges to ensure compliance with the Shipping Act. While this specific action is against MSC, it signals increased scrutiny from the FMC on such practices. Companies must ensure their policies and operational procedures align with FMC regulations to avoid potential penalties. No specific compliance deadline is mentioned, but the assessment of penalties indicates a need for immediate review and adherence to established rules.