Feature, Freight News, Logistics, Sea

FMC Fines MSC $23 Million Over Billing Practices

[ February 11, 2026   //   Gary Burrows ]

The U.S. Federal Maritime Commission slapped Mediterranean Shipping Co. S.A. (MSC), the world’s largest container carrier, with civil penalties totaling US$22.67 million for multiple violations of the Shipping Act, the agency announced Jan. 28.

In a final order (Docket No. 23-08), the FMC said its Bureau of Enforcement, Investigations and Compliance found MSC engaged in three categories of unlawful conduct spanning 2018-2023, including improper billing of demurrage and detention charges and failure to publish required tariff terms.

The largest share of the penalty – about US$13.145 million – stems from findings that MSC overcharged customers for late fees on non-operating refrigerated containers in 2021. The commission reversed an administrative judge’s earlier ruling and concluded errors appearing on roughly 23 percent of those invoices constituted an unreasonable practice under federal law.

Another US$9.46 million in penalties was assessed for MSC’s failure to include clearly stated fees for non-operating reefers in its published tariff from 2021 through early 2023. A smaller penalty of US$65,000 was levied for 2018-2020 practices of billing customs brokers listed as “notify parties” on bills of lading even though those parties did not move the cargo.

FMC Chairman Laura DiBella, designated Jan. 28 to lead the commission, has signaled tougher enforcement of carrier billing practices under the Shipping Act since reforms enacted in 2022 expanded regulatory scrutiny. Industry complaints about detention and demurrage disputes surged during the pandemic and have continued under the commission’s expanded interpretive rules on billing practices.

The penalties will be paid into the U.S. Treasury’s General Fund; the FMC does not retain civil penalty funds.

MSC did not immediately respond to requests for comment. In past regulatory proceedings, carrier trade groups such as the World Shipping Council have challenged aspects of the FMC’s billing rules in federal court, arguing some interpretations of who may be billed for charges are unclear or burdensome.

Shippers and logistics associations have long called for stricter enforcement of transparent tariff publication and fair billing practices, saying inconsistent charges can distort competition and add costs through the supply chain.

Tags: Mediterranean Shipping Co, U.S. Federal Maritime Commission, World Shipping Council