FMC Collects $1.9 Million Civil Penalty from Maersk for Unlawful Detention Charges

Here are key takeaways:

• The penalty: Maersk A/S, a vessel-operating common carrier headquartered in Copenhagen, Denmark, agreed to pay $1,900,000 in civil penalties to resolve allegations of Shipping Act violations.
• The allegation: Maersk was accused of charging detention fees to third parties who had not consented to be bound by the terms of its bills of lading, service contracts, or tariffs.
• Corrective action: As part of the agreement, Maersk will amend its tariff rules to limit the definition of “merchant” in its bills of lading to shippers, consignees, and persons with a beneficial interest in the cargo.
• Refunds and waivers: Beyond the civil penalty, Maersk agreed to issue refunds and waivers to impacted third parties.
• No admission of guilt: Maersk agreed to the settlement and payment but did not admit to any violations of the Shipping Act or Commission regulations.
• Where the money goes: The $1.9 million penalty will be deposited into the U.S. General Fund; the Federal Maritime Commission retains no portion of the payment.