U.S. fines Maersk $1.9 million over detention charges

Carrier agrees to settlement over third party billing

(Photo: FreightWaves/Jim Allen)

Maersk has agreed to pay a $1.9 million civil penalty to the Federal Maritime Commission over detention charges billed to third parties that had not agreed to Maersk’s bills of lading, service contracts, or tariffs.

The FMC said the settlement resolved allegations that Maersk assessed detention charges against third parties who had not consented to be bound by its contract terms. Maersk (OTC: AMKBY)did not admit to any violation.

Under the settlement, Maersk agreed to stop the practice, amend its U.S. tariff rules so “merchant” is limited to shippers, consignees, and beneficial cargo interests, and provide refunds and waivers to impacted third parties. The FMC also said the penalty payment goes to the U.S. General Fund, not to the FMC itself.

For shippers and cargo interests, the key issue is who can legally be billed for detention charges. This settlement suggests carriers need tighter billing practices and clearer alignment between tariffs, contracts, and the parties actually bound by them.

Read more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.