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Hapag-Lloyd AG to pay a $2 million civil penalty to address alleged violations of detention and demurrage practices
Posted on June 13, 2022 |
- 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.