FMC Fines 2 Carriers $2.65 Million for Alleged Detention and Demurrage Violations
Two ocean carriers recently paid a combined total of $2.65 million in civil penalties, the Federal Maritime Commission announced May 18. The penalties, assessed to Ocean Network Express Ptd. Ltd. (ONE) and Wan Hai Lines, Ltd., were paid to “resolve allegations of misconduct," the FMC said.
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ONE agreed to pay $1.7 million after it was accused of issuing detention charges when appointments were unavailable during the allocated free time, the FMC said. ONE also agreed to issue refunds and waivers to affected shippers, the FMC said. The carrier committed to comply with both the Ocean Shipping Reform Act of 2022 and the commission's Interpretative Rule on Detention and Demurrage, the FMC said.
Wan Hai agreed to pay $950,000 as part of a settlement with the FMC in February (see 2302270063). The carrier was accused of failing to “observe and enforce just and reasonable practices regarding its charges related to empty container returns,” the FMC said. Wan Hai also refunded impacted shippers all detention charges that were collected during this time and they “implemented corrective actions” to ensure that they are complying with the FMC’s Interpretive Rule on Detention and Demurrage, the FMC said.
Chairman Daniel Maffei said the agreements send “a clear message” to the international shipping community “that ocean carriers must fully comply with the U.S. legal obligations.” Maffei commended the Bureau of Enforcement, Investigations, and Compliance “for their efforts, which resulted in both meaningful civil penalties, and relief for impacted shippers.”
The FMC also noted that a similar settlement with Hapag-Lloyd was agreed to back in June 2022. Hapag-Lloyd paid $2 million in a settlement agreement with the FMC over their detention and demurrage policies (see 2206090020).