The Federal Maritime Commission (FMC or Commission) investigates potential violations of the Shipping Act and Commission regulations and negotiates settlements and informal compromises of civil penalties in relation to those potential violations. Recently, the Commission completed a compromise agreement recovering $1,900,000 in civil penalties from Maersk A/S (Maersk), a vessel-operating common carrier (VOCC) headquartered in Copenhagen, Denmark, that operates in the U.S.-foreign trades and globally.

The compromise agreement resolved allegations that Maersk violated the Shipping Act by assessing detention charges pursuant to its service contract and tariffs against third parties who had not consented to be bound by the terms of Maersk’s bills of lading, service contracts, or tariffs. Maersk agreed to terminate this practice and ensure future compliance by amending its U.S. tariff rules to limit the definition of merchant in its bills of lading to shippers, consignees, and persons with a beneficial interest in the cargo as defined by Commission regulations at 46 C.F.R. § 515.2(b). Finally, Maersk agreed that, in addition to paying a civil penalty, it will also issue refunds and waivers to impacted third parties.

Maersk compromised and agreed to the payment of a civil penalty, but did not admit to violations of the Shipping Act or Commission regulations.

Penalty payments are deposited into the U.S. General Fund of the United States.  The Federal Maritime Commission receives no portion of these payments.