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FMC expands its investigation into charges levied by MSC

Not for the first time in recent months, lawyers for Mediterranean Shipping Co (MSC) find themselves battling a case at the Federal Maritime Commission (FMC) in Washington DC. 

MSC, the world’s largest containerline, faces charges over its detention and demurrage charges as well as its billing procedures, potential violations of the Shipping Act. 

Rather than an individual complaint brought about by a disgruntled shipper – as has been the case with most suits in recent years – this latest investigation is more broad involving thousands of charges levied against a range of clients that are disputed, some of which date back to 2017. 

MSC has 25 days to file an initial response to the FMC order with the commission set to issue its final decision by late February 2025.

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.

Comments

  1. Its a joke, MSC are the only carrier in UK who charge Quay Rent when a vessel arrives Felixstowe Port, NOT when a container lands at the port. How can you charge quay rent when the container is on vessel !!!.
    When I approached MSC over this , they state its not MSC but Felixstowe Port Authority who have set this in place. Seems strange as other carriers we deal with charge quay rent when the container lands. !!!

    1. Thankfully the case has been taken up by the FMC. Hopefully they can sort it out. If they can’t it will possibly go to the civilian courts or potentially the International Courts.

      Unfortunately there are people who manage or work in companies who do the wrong thing.

      Related situation but completely different workplace.
      In Victoria Australia a large number of public hospitals have been underpaying their junior doctors who are the interns who are nearly qualified to work as doctors. It’s happening to nurses on their internships as well. It has gone to court as a class action and all affected doctors have been reimbursed the amount pay that wasn’t paid to them. This was a landmark case as the practice was wide spread. It is potentially happening around Australia. Dodgy practice

  2. This is a welcome development by the Federal Maritime Commission Washington DC. In Nigeria it is widely believed that “that the judiciary is the last hope of the common man.”

    Shipping companies are of the habits of bullying their way in Africa especially on the agreement reached with workers. On the 8th of March 2008 the Terminal Operators in Nigeria signed an agreement with workers in present of the Nigeria Ministry of Labour and Employment as well as the Ministry of Transportation and the Nigeria Ports Authority known as “Minimum Standard for the Dock Labour Industry which provides that Dockworkers salaries is N33, 000 with 10% increase every year, whether they work or not.” Till the time of writing the terminal operators have failed to honour the agreement.

    Additionally, is the Collective Bargaining Agreement of 2014, which expressly provides that Terminal benefits of Dockworkers is N350, 000 for Dockworkers. Terminal Operators in Nigeria also violated the recent Collective Bargaining Agreement signed on 1st May 2019, members of the Seaport Terminal Operators Association of Nigeria (STOAN) signed a Collective Bargaining Agreement (CBA) with the Maritime Workers Union of Nigeria (MWUN) in present of the Ministry of Labour & Employment, Ministry of Transportation, the Nigerian Maritime Administration and Safety Agency (NIMASA).

    The arrogant and pomposity of these Seaport Terminal Operators in Nigeria towards Dockworkers is more than Imperialism ideology. Dockworkers in Nigeria have been treated like slaves in their own country owing to the vacuum of leadership.

    Not surprisingly, Mediterranean Shipping Company MSC, as well as other notable terminal operators are in collusion to stiffen the life out of the over 11, 000 hardworking Dockworkers in Nigeria. The others are, AP Moller APMT, Bollore Group, ENL Consortium, Greenview Development a subsidiary of Dangote Group who is Africa richest man, SIFAX Group, BUA Ports and Terminals, Apapa Bulk Terminal Limited. A subsidiary of Flour Mills Nigeria Plc, West Africa Container Terminal (WACT), Intels Integrated Logistics Terminal, Onne Oil and Gas Free Trade Zone Rivers state and others.

    1. Jillian Faulkner

      Thanks so much for the advice. I appreciate your concern to see that justice and respite comes the way of the downtrodden Dockworkers of Nigeria. As a human rights Advocate and a Marine Consultant, I have written to the appropriate organizations. They are as follows:

      The European Commission President, Danish Prime Minister, Italian Prime Minister. International Labour Organization ILO, International Maritime Organization IMO, International Transport Workers Federation ITF, International Dockworkers Council IDC, Security Exchange Commission US Gary Gensler, International Seafarers Welfare Association Network ISWAN.

      The International Dockworkers Council IDC and the International Maritime Organization IMO were forthright in their reply. The office of the European Commission President likewise replied but were adamant on what to do.

      Across the world Dockworkers do go through harrowing challenges. Example, the unlawful removal of over 5, 000 Dockworkers from duty post in Liverpool in the United Kingdom in 1995. Dockworkers in Mexico are on strike and other countries.

      That of Nigeria had been an issue since 1961 till date. The only time Dockworkers in Nigeria did enjoy tranquility, Industrial Peace and harmony was between 1995 till 2000 where they were paid their areas, fringe benefits and proper remuneration.

      Nevertheless, in August 2000 over 5000 Dockworkers were removed from the seaports in Nigeria without meaningful disengagement pay off. The hidden facts about their unlawful removal from the seaports in Nigeria was after the Unionist did publication in The Guardian dated July 2, 1999 on how Hoegh-Line Autoliners and other private terminal operators underpaid the Nigeria government. Hoegh-Line Autoliners for several years managed RORO Port Tin Can Port of Lagos. As at then Hoegh-Line Autoliners to have generated a paltry revenue of N54 million naira monthly. Out of the N54m, Hoegline claimed that about N48 million naira representing about 80% was used to pay salaries and other sundry expenses.

      However, when the Nigeria Ports Authority NPA took over operations of the RORO Port of Tin Can Port in Lagos from private management, a positive difference was made. In the first month of operation NPA recorded a staggering sum of N60 million naira as profits. Out of this amount only N6 million naira was used for payment of salaries and other overhead costs leaving a total of about N54 million naira in the coffers of the Federal Government of Nigeria.

      The situation concerning the Nigerian Dockworkers is that the present government at the helm of affairs in Nigeria is reviewing the situation. They have acted upon our letters to them in June this year where we stated the facts and figures that those presently occupying the Union office and parading themselves as leaders of the workers were imposed upon them by the terminal operators. The government has finally asked them to vacate the office. We are looking forward to a day hardworking Dockworkers in Nigeria shall be treated with respect by terminal operator

      1. In Australia in the 1970s through to at least 2000 the old Painters and Dockers had some dreadful trouble in management and seafarers and captains and even sailors had things of theirs get pinched.

        Completely different topic.

        BP Marine I read in gCaptain are thinking about making fuel for freighter ships out of recycled plastics. Woolworths Supermarkets and Coles Group in Australia have a backlog of recycled plastics and have lost the company that picked it up. Please contact your nearest BP Marine and tell them about these 2 supermarket chains and please let your fellow Mariners and consultants know about this and ask them to contact their nearest BP Marine. I can’t remember which addition of gCaptain I read it in but that is where I read it

  3. MSC really needs to get things together. Look at the way they treat their crew. No sign off for months after end of contract date and crew members are overworked and overtime wages reduced to 0. No proper drinking water onboard. Some crew members had to drink tap water. Last week, 3 crew members got sick due to exhaustion and had to be signed off on medical grounds.
    MSC bought scrap vessels which are unmaintained and dry dock is postponed until they fall apart leaving ship crew to fix breakdowns, all this to try to compete with Maersk as the largest shipping company in the world. What a joke.

  4. Hi All.

    Three other websites you might like to get onto are avaaz.org and change.org and do Gooders I don’t know the website address for do gooders. These are petition sites

  5. Anonymous

    You and your fellow crew mates need to report this to your industry regulator, human rights high commissioner and amnesty international at

    amnesty.org. Google amnesty international. Human rights breaches galore going on Buddy

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