A.P. Moller-Maersk has agreed to a $1.9 million civil penalty settlement with the U.S. Federal Maritime Commission (FMC) over allegations that the Danish shipping company improperly charged detention fees to third parties.
The FMC said that Maersk improperly assessed detention charges against third parties that had not agreed to be bound by the carrier’s bills of lading, service contracts, or tariff rules, in violation of the Shipping Act. In addition to the financial penalty, Maersk agreed to stop the practice and amend its tariff rules. The shipping line will now narrow the definition of “merchant” in its bills of lading to apply to shippers, consignees, and parties with a beneficial interest in the cargo, in line with federal regulations, and will issue refunds and waivers to affected third parties.
This latest settlement follows a $22.67 million civil penalty on MSC Mediterranean Shipping Company and an FMC ruling against Evergreen Marine related to detention charges, in keeping with the commission’s position that detention and demurrage charges should help improve cargo movement and freight flow, not serve as a source of revenue.
IAM Member Impact: Maersk must now restrict the “merchant” definition to shippers, consignees, and parties with a beneficial interest in cargo. IAM forwarder/agent members acting purely as intermediaries have significantly stronger protection against being billed for detention charges they cannot operationally control.
Source: Marine Insight