FMC Increases MSC Fine for Overcharging Non-Operating Reefers

2026-01-23

The Federal Maritime Commission (FMC) has raised the civil penalty against the Mediterranean Shipping Company (MSC) to over $22 million for charging excessive late fees on non-operating reefer containers. This amount is an increase from the previous $16 million, as reported by New York's Journal of Commerce. The FMC's three commissioners partially overturned an administrative law judge's February 2025 ruling, which found the overcharges were a billing mistake. The investigation found that MSC charged shippers late fees on non-operating reefers at the higher rates typically charged for operating reefers throughout 2021. 

Although MSC's tariff did not specify late fees for non-operating reefers, the company billed them as dry containers. MSC claimed the issue stemmed from errors in their billing software and has refunded $2 million to the affected customers. The judge determined that only 23 per cent of invoices contained overcharges and concluded that the overcharges were mistakes that did not warrant penalties.

However, the commissioners supported the FMC's enforcement division, citing 2,629 instances of overcharging—an average of 10 per day over more than eight months. They concluded that these charges represented a pattern of unreasonable billing practices. While not deemed a willful violation, the commissioners noted that non-operating reefers do not require the same level of care as operating units.