MSC faces federal scrutiny for alleged U.S. Shipping Act breach

Posted on August 18, 2023   |  

Mediterranean Shipping Company (MSC) could face potential U.S. Shipping Act violation charges for allegedly overbilling customers by $2 Million.

MSC Under FMC Scrutiny for Alleged Misuse of Reefer Rates and Improper Billing

FMC's scrutiny stems from alleged MSC misuse of operating reefer rates for non-operating reefers (NORs).

Misuse of rates was reportedly considered a norm until March 2023, when MSC started separate D&D charges for NORs

FMC filing discloses customer disputes leading to $1.2 million in refunds and around $857,944 extra revenue retained by MSC

Larger ocean container carriers are also subject to complaints over possible systematic unfair practices, with multiple cases reported to FMC