FMC imposes $1.9 million fine on Maersk for improper billing for delays

The U.S. Federal Maritime Commission (FMC) has reached a civil penalty agreement of $1.9 million with Danish shipping giant A.P. Moller – Maersk over allegations that the carrier improperly billed third parties for delays under its service contracts and tariff rules.

According to the FMC, the agreement resolves allegations that Maersk charged delay fees to parties that did not agree to the terms of the bills of lading, service contracts, or the carrier's tariffs, which regulators believe violates the Shipping Act.

The FMC stated that Maersk has agreed to cease this practice and amend its tariff rules in the U.S. to clarify the definition of "merchant" in its bills of lading. Under the revised approach, the definition will be limited to shippers, consignees, and parties with a beneficial interest in the cargo, as defined by federal regulations.

In addition to paying the civil penalty, Maersk has agreed to provide refunds and cancellations for affected third parties. The company did not admit to any wrongdoing as part of the agreement.

This case is another high-profile enforcement action by the FMC as the agency continues its aggressive fight against delay billing and demurrage practices following the passage of the Ocean Shipping Reform Act in 2022.

Earlier this year, the Commission imposed a $22.67 million fine on MSC Mediterranean Shipping Company for what regulators described as widespread billing violations related to delays and fees for refrigerated containers.

In April, a federal appeals court upheld the FMC's ruling against Evergreen Marine regarding delay fees charged during the closure of the Port of Savannah, supporting the Commission's view that such fees should promote "cargo fluidity" rather than simply generate revenue.

All civil penalties collected by the FMC go to the U.S. Treasury General Fund. The agency does not retain these funds.