The Mediterranean Shipping Company (MSC) could face charges for allegedly violating the U.S. Shipping Act after the Federal Maritime Commission (FMC) investigated a claim that the organization billed its customers an extra $2 million for demurrage and detention (D&D) charges.

The FMC audited MSC’s D&D charges in 2021 after investigating claims that the company issued the same daily rate for both operating and non-operating reefers (NORs) — a refrigerated shipping container that has its refrigeration unit turned off — according to The Loadster. 

The FMC said that the misuse of operating reefer rates for NOR shipments had allegedly become a “normal and customary” practice for the business until March 2023, when the carrier began supplying separate D&D charges for NORs under public inspection.

“Upon information and belief, on at least 925 occasions, MSC’s customers disputed the operating reefer detention or demurrage, resulting in refunds totaling $1.2m,” the FMC wrote in a filing. “In 2021, 1,704 NOR overcharges went undisputed, resulting in MSC retaining approximately $857,944 in additional revenue, and MSC took no action to correct the operating reefer versus NOR detention or demurrage or per diem overcharges.”

All of the top ten ocean container carriers have been accused by shippers of systematic price gouging and unfair practices over the last two years, according to complaints lodged with the FMC.

Many of the complaints include or are solely related to, allegations of unfair demurrage charges. In May 2023, the FMC reported that Ocean Network Express Ptd. Ltd. (ONE) had agreed to pay a $1.7 million civil penalty after entering into a compromise agreement with the FMC in April to resolve allegations it violated rules by assessing detention charges when appointments were unavailable during allocated free time to return equipment.  Wan Hai agreed to pay $950,000 in civil penalties to address similar allegations. In June 2022, Hapag Lloyd AG paid $2 million in civil penalties to resolve allegations it violated The Shipping Act (46 U.S.C. § 41102(c)) in how it assessed detention charges.