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FMC approves US$2 million penalty against Hapag-Lloyd

Author:   Posttime:2022-06-14

THE Federal Maritime Commission (FMC) has fined German shipping giant Hapag-Lloyd US$2 million over its detention and demurrage practices, reports the American Journal of Transportation.

"To restore full confidence in our ocean freight system, vigorous enforcement of FMC rules we must ensure powerful ocean carriers obey the Shipping Act when dealing with American importers and exporters," said FMC chairman Daniel Maffei.
"The case is just part of an ongoing effort to investigate any conduct alleged to violate FMC rules - and in particular, the interpretive rule on detention and demurrage charges," he said.
This settlement agreement follows a April 22 Initial Decision issued by the Commission's Administrative Law Judge finding Hapag-Lloyd violated the law by failing to establish, observe, and enforce regulations and practices connected with receiving, handling, storing or delivering property by unreasonably refusing to waive detention charges.
The $2 million civil penalty will be paid to the US Department of the Treasury and will be deposited into the General Fund.
 

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