The U.S. Federal Maritime Commission (FMC) has reached a settlement with Danish shipping company A.P. Moller – Maersk for $1.9 million. The company was accused of improperly charging third parties for detention fees und...
The U.S. Federal Maritime Commission (FMC) has reached a settlement with Danish shipping company A.P. Moller – Maersk for $1.9 million. The company was accused of improperly charging third parties for detention fees under its service contracts and tariff rules.
The FMC stated that the settlement addresses claims that Maersk applied detention charges to parties who did not agree to the terms in the carrier's bills of lading, service contracts, or tariffs. Regulators pointed out that this action violated the Shipping Act.
As part of the agreement, Maersk will stop this practice and update its U.S. tariff rules. The new definition of “merchant” in its bills of lading will now only include shippers, consignees, and parties with a beneficial interest in cargo, as defined by federal regulations.
Along with the civil penalty, Maersk has agreed to provide refunds and waivers to the affected third parties. The company did not admit to any wrongdoing in this settlement.
This case is part of the FMC's ongoing efforts to improve enforcement after the pandemic, focusing on detention and demurrage billing practices following the Ocean Shipping Reform Act of 2022.
Earlier this year, the Commission also imposed a $22.67 million civil penalty on MSC Mediterranean Shipping Company for significant billing violations related to detention charges and refrigerated container tariffs.
In April, a federal appeals court upheld an FMC ruling against Evergreen Marine, concerning detention fees that were charged during the closure of the Port of Savannah. The court supported the Commission's stance that such charges should help maintain “freight fluidity” rather than just generate profits.
All civil penalties collected by the FMC go to the U.S. Treasury’s General Fund, and the agency does not keep any of the money.