AmericasContainersRegulatory

MSC wins landmark FMC case

The Federal Maritime Commission (FMC) in Washington DC has dismissed a case brought against the world’s largest containerline, Mediterranean Shipping Co (MSC), in a ruling that will be analysed by many in the transportation sector.

The FMC studied 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).

In a four to one ruling among its commissioners, the FMC has ruled that the $1,000 charge was not an unreasonable detention and demurrage charge. 

“Although I concur with this ruling, it is imperative to consider the multifaceted concerns regarding auxiliary charges across various industries. The growing frequency of auxiliary charges is an issue we must be prepared to address and set forth frameworks to ensure these fees serve the best interests of the shipping industry,” commented commissioner Louis Sola. 

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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