Policy & Compliance
T he US Federal Maritime Commission (FMC) announced on 28 January 2026 that it had imposed a civil penalty of $22.67 million on Mediterranean Shipping Company (MSC) for a series of violations of the US Shipping Act committed over several years. The enforcement action follows a lengthy investigation by the FMC Bureau of Enforcement, US Federal Maritime Commission rules that Mediterranean Shipping Company engaged in improper billing practices and failed to meet tariff transparency requirements MSC hit by multimillion dollar fi ne “ The decision shows heightened A separate set of violations involved MSC’s published tariff practice between 2021 and 2023, during which the carrier failed to include clearly stated fees for non- operating refrigerated containers (NORs) as required by tariff publication rules. “Knowing and wilful” The FMC determined that these omissions became “knowing and wilful” from March 2022, when MSC informed regulators it would correct its tariff but did not do so promptly, resulting in assessed penalties of $9.46 million.
those parties were not involved in moving the cargo, breaching federal provisions on lawful billing. The commission upheld an administrative law judge’s finding that this use of a ‘merchant clause’ in bills of lading was unlawful, resulting in assessed penalties of $65,000 for that conduct. The largest portion of the fine, approximately $13.145 million, stemmed from the commission’s finding that MSC overcharged customers for demurrage and detention fees on non-operating refrigerated containers (NOR) during 2021. While the initial ruling by an administrative law judge treated this as a technical error, the FMC concluded that overcharges appeared on roughly 23% of all NOR invoices that year and therefore constituted an “unreasonable practice” under the Shipping Act, warranting $5,000 per violation in penalties.
regulatory scrutiny of carrier billing and tariff practices in the aftermath of pandemic- era supply chain disruptions
Investigations and Compliance, which found that MSC engaged in improper billing practices and failed to meet tariff transparency requirements under US law. First violation According to the FMC, the company’s first violation occurred between 2018 and 2020, when MSC billed customs brokers and other third parties listed as “notify parties” for demurrage and detention charges, even though
The decision, which represents one of the more substantial civil penalty assessments in recent FMC enforcement history, shows heightened regulatory scrutiny of carrier billing and tariff practices in the aftermath of pandemic-era supply chain disruptions. More information can be found at: https://www.fmc.gov/articles/msc- assessed-civil-penalties-totaling-2 2-67-million/
March 2026 | 17
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