The Federal Maritime Commission has imposed a record $22.67 million in penalties on MSC Mediterranean Shipping Company for multiple violations, including billing and tariff breaches, signalling increased regulatory scrutiny of carrier practices.
The Federal Maritime Commission has imposed civil penalties totalling US$22.67 million on MSC Mediterranean Shipping Company after finding the carrier committed multiple violations of the Shipping Act, according to the Commission. The Bureau of Enforcement, Investigations, and Compliance led the probe and the Commission adopted and, in some respects, adjusted an Administrative Law Judge’s findings before assessing the sanctions. (Sources: FMC; Maritime Executive; MarineLog)
One set of violations concerns MSC’s use of a ‘merchant clause’ in bills of lading between 2018 and 2020. The Commission affirmed the ALJ’s conclusion that MSC billed customs brokers as ‘notify parties’ for demurrage and detention charges even though those brokers were not involved in moving the cargo, a practice found to breach 46 U.S.C. § 41102(c). Civil penalties for this conduct totalled $65,000. (Sources: FMC; Maritime Executive)
A second strand of the decision relates to MSC’s published tariff treatment of non‑operating reefers. BEIC alleged the carrier failed to include a required statement of fees for non‑operating reefers (NORs) in its tariff from 2021 into 2023. The Commission agreed there was a statutory violation under 46 U.S.C. § 40501 but modified the ALJ’s timeline, finding that knowing and willful violations began in March 2022 when MSC told the agency it would amend the tariff. Penalties tied to the tariff publication failures amounted to $9,460,000. (Sources: FMC; MarineLog)
The Commission reached its largest penalty in connection with overcharging for NOR‑related demurrage and detention in 2021. Reversing the ALJ’s view that the problem was merely a billing ‘mistake’, the agency found that roughly 23 per cent of NOR bills that year reflected overcharges and characterised the practice as unreasonable under 46 U.S.C. § 41102(c). Applying a $5,000 penalty per violation produced a total sanction of $13,145,000 for that conduct. (Sources: FMC; Maritime Executive)
The combined fines , $22.67 million , are payable to the General Fund of the U.S. Treasury; the Commission itself does not retain penalty proceeds, the FMC stated. The enforcement action signals heightened regulatory scrutiny of carrier billing and tariff practices, particularly where systematic errors or omissions affect shippers and intermediaries. (Sources: FMC; MarineLog)
Industry publications noted the case underscores the potential cost of tariff non‑compliance and billing practices that regulators deem unreasonable, and suggested carriers may face increased attention on how NORs and equivalent services are priced and published. The decision may prompt carriers to review tariff language and their billing systems to reduce legal and financial risk. (Sources: Maritime Executive; MarineLog)
Source Reference Map
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Source: Noah Wire Services
Verification / Sources
- https://container-news.com/fmc-assesses-22-67-million-in-civil-penalties-against-msc/ – Please view link – unable to able to access data
- https://www.fmc.gov/articles/msc-assessed-civil-penalties-totaling-22-67-million/ – The Federal Maritime Commission (FMC) imposed a civil penalty of $22.67 million on MSC Mediterranean Shipping Company for three Shipping Act violations. The Bureau of Enforcement, Investigations, and Compliance (BEIC) investigated and prosecuted the matter. The first violation occurred between 2018 and 2020, where MSC billed customs agents as ‘notify parties’ for demurrage and detention charges through the ‘merchant clause’ in its bills of lading, even though these agents were not involved in moving the cargo. The Commission affirmed the Administrative Law Judge’s (ALJ) initial decision, determining that MSC’s use of the ‘merchant clause’ violated 46 U.S.C. § 41102(c), resulting in civil penalties totaling $65,000. The second violation involved MSC’s failure to include in its published tariff a statement of fees for non-operating reefers (NORs) from 2021 to early 2023, violating 46 U.S.C. § 40501. The Commission modified the ALJ’s initial decision, finding that knowing and willful violations began in March 2022, when MSC stated it would modify its tariff, leading to civil penalties of $9,460,000. The third violation concerned MSC overcharging customers for demurrage and detention fees related to NORs in 2021. The Commission reversed the ALJ’s determination that this was a billing system mistake, concluding that the overcharging, affecting about 23% of all NOR bills during the year, constituted an unreasonable practice under 46 U.S.C. § 41102(c), resulting in a penalty of $5,000 per violation, totaling $13,145,000. The total penalties assessed against MSC amounted to $22.67 million, with all penalties paid directly to the U.S. Treasury’s General Fund. (fmc.gov)
- https://maritime-executive.com/article/msc-assessed-22-67m-in-civil-penalties-by-fmc-for-shipping-act-violations – The Federal Maritime Commission (FMC) has imposed civil penalties totaling $22.67 million on MSC Mediterranean Shipping Company for multiple Shipping Act violations. The Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) investigated and prosecuted the matter. The first violation occurred between 2018 and 2020, where MSC billed customs agents as ‘notify parties’ for demurrage and detention charges through the ‘merchant clause’ in its bills of lading, even though these agents were not involved in moving the cargo. The Commission affirmed the Administrative Law Judge’s (ALJ) initial decision, determining that MSC’s use of the ‘merchant clause’ violated 46 U.S.C. § 41102(c), resulting in civil penalties totaling $65,000. The second violation involved MSC’s failure to include in its published tariff a statement of fees for non-operating reefers (NORs) from 2021 to early 2023, violating 46 U.S.C. § 40501. The Commission modified the ALJ’s initial decision, finding that knowing and willful violations began in March 2022, when MSC stated it would modify its tariff, leading to civil penalties of $9,460,000. The third violation concerned MSC overcharging customers for demurrage and detention fees related to NORs in 2021. The Commission reversed the ALJ’s determination that this was a billing system mistake, concluding that the overcharging, affecting about 23% of all NOR bills during the year, constituted an unreasonable practice under 46 U.S.C. § 41102(c), resulting in a penalty of $5,000 per violation, totaling $13,145,000. The total penalties assessed against MSC amounted to $22.67 million, with all penalties paid directly to the U.S. Treasury’s General Fund. (maritime-executive.com)
- https://www.marinelog.com/legal/fmc-slaps-msc-with-22-6m-civil-penalty/ – The Federal Maritime Commission (FMC) has imposed a civil penalty of $22.67 million on MSC Mediterranean Shipping Company for three types of Shipping Act violations. The Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) investigated and prosecuted the matter. The first violation occurred between 2018 and 2020, where MSC billed customs agents as ‘notify parties’ for demurrage and detention charges through the ‘merchant clause’ in its bills of lading, even though these agents were not involved in moving the cargo. The Commission affirmed the Administrative Law Judge’s (ALJ) initial decision, determining that MSC’s use of the ‘merchant clause’ violated 46 U.S.C. § 41102(c), resulting in civil penalties totaling $65,000. The second violation involved MSC’s failure to include in its published tariff a statement of fees for non-operating reefers (NORs) from 2021 to early 2023, violating 46 U.S.C. § 40501. The Commission modified the ALJ’s initial decision, finding that knowing and willful violations began in March 2022, when MSC stated it would modify its tariff, leading to civil penalties of $9,460,000. The third violation concerned MSC overcharging customers for demurrage and detention fees related to NORs in 2021. The Commission reversed the ALJ’s determination that this was a billing system mistake, concluding that the overcharging, affecting about 23% of all NOR bills during the year, constituted an unreasonable practice under 46 U.S.C. § 41102(c), resulting in a penalty of $5,000 per violation, totaling $13,145,000. The total penalties assessed against MSC amounted to $22.67 million, with all penalties paid directly to the U.S. Treasury’s General Fund. (marinelog.com)
- https://www.marinelog.com/legal/fmc-slaps-msc-with-22-6m-civil-penalty/ – The Federal Maritime Commission (FMC) has imposed a civil penalty of $22.67 million on MSC Mediterranean Shipping Company for three types of Shipping Act violations. The Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) investigated and prosecuted the matter. The first violation occurred between 2018 and 2020, where MSC billed customs agents as ‘notify parties’ for demurrage and detention charges through the ‘merchant clause’ in its bills of lading, even though these agents were not involved in moving the cargo. The Commission affirmed the Administrative Law Judge’s (ALJ) initial decision, determining that MSC’s use of the ‘merchant clause’ violated 46 U.S.C. § 41102(c), resulting in civil penalties totaling $65,000. The second violation involved MSC’s failure to include in its published tariff a statement of fees for non-operating reefers (NORs) from 2021 to early 2023, violating 46 U.S.C. § 40501. The Commission modified the ALJ’s initial decision, finding that knowing and willful violations began in March 2022, when MSC stated it would modify its tariff, leading to civil penalties of $9,460,000. The third violation concerned MSC overcharging customers for demurrage and detention fees related to NORs in 2021. The Commission reversed the ALJ’s determination that this was a billing system mistake, concluding that the overcharging, affecting about 23% of all NOR bills during the year, constituted an unreasonable practice under 46 U.S.C. § 41102(c), resulting in a penalty of $5,000 per violation, totaling $13,145,000. The total penalties assessed against MSC amounted to $22.67 million, with all penalties paid directly to the U.S. Treasury’s General Fund. (marinelog.com)
- https://www.marinelog.com/legal/fmc-slaps-msc-with-22-6m-civil-penalty/ – The Federal Maritime Commission (FMC) has imposed a civil penalty of $22.67 million on MSC Mediterranean Shipping Company for three types of Shipping Act violations. The Commission’s Bureau of Enforcement, Investigations, and Compliance (BEIC) investigated and prosecuted the matter. The first violation occurred between 2018 and 2020, where MSC billed customs agents as ‘notify parties’ for demurrage and detention charges through the ‘merchant clause’ in its bills of lading, even though these agents were not involved in moving the cargo. The Commission affirmed the Administrative Law Judge’s (ALJ) initial decision, determining that MSC’s use of the ‘merchant clause’ violated 46 U.S.C. § 41102(c), resulting in civil penalties totaling $65,000. The second violation involved MSC’s failure to include in its published tariff a statement of fees for non-operating reefers (NORs) from 2021 to early 2023, violating 46 U.S.C. § 40501. The Commission modified the ALJ’s initial decision, finding that knowing and willful violations began in March 2022, when MSC stated it would modify its tariff, leading to civil penalties of $9,460,000. The third violation concerned MSC overcharging customers for demurrage and detention fees related to NORs in 2021. The Commission reversed the ALJ’s determination that this was a billing system mistake, concluding that the overcharging, affecting about 23% of all NOR bills during the year, constituted an unreasonable practice under 46 U.S.C. § 41102(c), resulting in a penalty of $5,000 per violation, totaling $13,145,000. The total penalties assessed against MSC amounted to $22.67 million, with all penalties paid directly to the U.S. Treasury’s General Fund. (marinelog.com)
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score: 10
Notes: The article reports on a recent enforcement proceeding concluded on January 28, 2026, involving MSC Mediterranean Shipping Company, S.A. (MSC), with penalties assessed on the same date. This indicates high freshness, as the information is current and pertains to a recent event.
Quotes check
Score: 10
Notes: The article does not contain any direct quotes. The information is presented in a factual manner without attributed statements, which is appropriate for reporting on official proceedings.
Source reliability
Score: 10
Notes: The primary source is the Federal Maritime Commission’s official website, which is a reputable and authoritative source for maritime regulatory information. The article also references other reputable sources such as The Maritime Executive and Marine Log, which are known for their coverage of maritime industry news.
Plausibility check
Score: 10
Notes: The claims made in the article are plausible and consistent with known regulatory actions by the Federal Maritime Commission. The penalties and violations described align with typical enforcement actions in the maritime industry.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary: The article provides a timely and accurate report on the Federal Maritime Commission’s recent enforcement action against MSC, with information corroborated by multiple reputable sources. No significant concerns were identified in the fact-checking process.