On January 6, 2026, the Federal Maritime Commission (FMC) assessed the Mediterranean Shipping Company (MSC) $22.67 million in civil penalties for violations of The Shipping Act (46 U.S.C. § 40101 et seq.).  MSC Assessed Civil Penalties Totaling $22.67 Million – Federal Maritime Commission.  The enforcement action—resulting in one of FMC’s largest penalties in recent memory—found several widespread MSC billing practices affecting customs brokers and cargo owners that violated the Shipping Act.

Of the total penalty amount, $65,000 related to MSC’s billing of customs agents as “notify parties” for demurrage and detention charges (late fees) through the “merchant clause” in its bills of lading, even though such parties were not involved in moving the cargo, in violation of 46 U.S.C. § 41102(c).

MSC’s failure to include its non-operational reefer (NOR) -related fees in its published tariffs from 2021 to 2023, required by 46 U.S.C. § 40501, resulted in a further $9,460,000 in civil penalties, an amount the Commission modified upward from the Administrative Law Judge’s penalty based on a finding that MSC’s violations were willful and knowing.  The largest share of penalties, however, were imposed by the Commission after reversing the Administrative Law Judge’s determination that MSC had not overcharged demurrage and detention (D&D) fees as connected to NORs.  The FMC investigation found the practice was in place for all of 2021, leading the Commission to conclude it was an “unreasonable practice” as opposed to a mistake in the billing system and justified $13,145,000 in penalties under 46 U.S.C. § 41102(c).

There has been a significant increase in the number and complexity of cases filed with the FMC, with many involving disputes emanating from the pandemic-era supply chain disruption.  The civil penalty of $22.67M issued on January 6, 2026, shows FMC’s heightened scrutiny of demurrage and detention billing practices, as well as tightening oversight of carrier billing and contracting practices and is willing to go.  The Commission’s willingness to part ways with the Administrative Law Judge’s findings to impose heavier penalties merits particular attention.

As always, we advise and assist our clients in practicing a proactive approach to compliance and early identification of possible issues.  For more information concerning the FMC and Shipping Act, please contact us at: info@chaloslaw.com