CMA CGM pays $2 million in FMC penalties settlement

Posted on June 3, 2024   |  

The Federal Maritime Commission (FMC) settled with three companies for over $2.3 million in total penalties.

CMA CGM paid $1.9 million for overbilling third parties by broadly defining "merchant" in bills of lading.

CMA CGM updated its US tariff rules to define "merchant” correctly and agreed to provide refunds and waivers to affected parties and to comply with the Demurrage and Detention Billing Rule starting 28 May 2024.

Vanguard Logistics Services paid $175,000 for handling cargo from OTIs without required bonds or insurance and agreed to audit and improve its processes, providing regular updates.

Shipco Transport paid $155,000 to settle three claims of wrongdoing.

The FMC highlighted these settlements as crucial for enforcing maritime regulations and ensuring fair trade.

These actions demonstrate the FMC's commitment to compliance and accountability in the shipping industry.