U.S. Fines Shipping Giant Maersk $1.9 Million Over Improper Container Detention Charges
The U.S. Federal Maritime Commission (FMC) has reached a $1.9 million civil penalty settlement with Danish shipping company A.P. Moller-Maersk over allegations the carrier improperly charged detention fees to third parties.
The settlement resolves allegations that Maersk improperly assessed detention charges against third parties that had not agreed to be bound by the carrier’s bills of lading, service contracts, or tariff rules, according to the Commission. The regulator said this violated the Shipping Act.
As part of the settlement, Maersk agreed to stop the practice and amend its U.S. tariff rules.
The company will narrow the definition of “merchant” in its bills of lading so it only applies to shippers, consignees, and parties with a beneficial interest in the cargo, in line with federal regulations.
The FMC also said Maersk will issue refunds and waivers to affected third parties. Maersk agreed to pay the civil penalty but did not admit to violating the Shipping Act or FMC regulations.
The case is part of the FMC’s increased focus on detention and demurrage billing practices after the Ocean Shipping Reform Act of 2022 was introduced following major supply chain disruptions during the pandemic.
Earlier this year, the FMC imposed a $22.67 million civil penalty on MSC Mediterranean Shipping Company over detention and refrigerated container tariff billing violations.
In April, a federal appeals court also upheld an FMC ruling against Evergreen Marine related to detention charges imposed during a closure at the Port of Savannah.
The FMC has argued that detention and demurrage charges should help improve cargo movement and freight flow rather than act mainly as a source of revenue.
Reference: FMC
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