Mediterranean Shipping Co. (MSC), the world’s largest container carrier, is contesting a substantial $63.3 million fine proposed by the Federal Maritime Commission (FMC). The fine, one of the most severe ever suggested by this small Washington regulatory body, stems from allegations that MSC overcharged customers and engaged in incorrect billing practices in violation of the Shipping Act. Despite the severe pandemic-era scrutiny on shipping rates, MSC has termed the penalties as “excessive” and is gearing up for a vigorous defense.
The legal proceedings are set to unfold with MSC’s formal response due by May 3, followed by a reply from the enforcement bureau by May 18. The final decision, subject to further appeals, could take months as it moves through the administrative law judge’s review. This case highlights the intense regulatory spotlight on shipping practices, particularly during the Covid-19 pandemic when freight charges soared due to unprecedented supply and demand imbalances.
Credits:
- AJOT, “Shipping giant MSC vows to fight ‘excessive’ fine sought by US agency”, AJOT Article.
