Hapag-Lloyd AG to pay a $2 million civil penalty to address alleged violations of detention and demurrage practices

The 5th largest container shipping line in the world, Hapag Lloyd, operating over 1.7 million TEUs and 249 ships is the 2nd carrier to get a settlement for alleged violations of their demurrage and detention practices.
The settlement contains a $2 million civil penalty which will be paid to the U.S. Department of the Treasury and deposited into the General Fund.
A motor carrier company based in Exeter, California, Orange Avenue Express, Inc. (OAE) filed a complaint with FMC alleging that Hapag-Lloyd broke the Shipping Act, the return of the empty reefer (refrigerated) containers.
A motor carrier company based in Exeter, California, Orange Avenue Express, Inc. (OAE) filed a complaint with FMC alleging that Hapag-Lloyd broke the Shipping Act, the return of the empty reefer (refrigerated) containers.
The FMC's Bureau of Enforcement (BOE) investigated, and the Commission's Administrative Law Judge (ALJ) found that Hapag-Lloyd had committed a breach of law, relating to knowingly violating the law, complying with and obtaining, handling, or has failed to enforce fair practices and is in contravention of 46 USC 41102(c).
The ALJ ordered an $822,220 civil penalty, which was recommended by the FMC’s BoE for Hapag-Lloyd to terminate their violative actions.
On the 8th of June, the FMC approved a settlement agreement between the BoE and Hapag-Lloyd AG (Hapag-Lloyd) where the ocean carrier will pay a $2 million civil penalty.

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