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FMC demands answers from MSC over congestion surcharges

Using its new found powers granted by president Joe Biden, the Federal Maritime Commission (FMC) has taken aim at the world’s largest containerline, Mediterranean Shipping Co (MSC).

The FMC is questioning a congestion fee MSC charged SOFi Paper Products in a first case of its kind since the passing last year of the Ocean Shipping Reform Act (OSRA).

MSC has until the end of the month to explain why it should not pay a refund to SOFi.

The FMC said MSC never provided “justification” to SOFi stemming from a $1,000 “congestion surcharge” levied against SOFi in July.

The FMC in Washington DC is sorting through a host of cases brought by irate shippers against global liners in recent months, including a few involving MSC.

OSRA was signed into law last June on the back of exporters lobbying politicians to intervene during the supply chain crunch seen in the US during the pandemic. The law allows the FMC, the US shipping regulator, to launch probes of containerlines’ business practices and to apply enforcement measures.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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