FMC Orders MSC to Justify Congestion Surcharge
Major shipping line Mediterranean Shipping Co. must explain to the Federal Maritime Commission by Feb. 28 why it shouldn’t be required to pay a refund to SOFi Paper Products for allegedly violating U.S. shipping regulations, the FMC said Feb. 3. The FMC said MSC never provided “justification” to SOFi stemming from a $1,000 “congestion surcharge” levied against SOFi in July.
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MSC’s “failure to show the reasonableness of the charge invoiced July 14, 2022, or provide a justification for the charge, demonstrates that the charge may constitute an unreasonable action or practice in violation of” shipping regulations, the FMC said. The commission also said MSC should “show cause” for why the FMC shouldn’t “impose a civil penalty” against the shipping line. The commission expects a final decision in this case by May 8. An MSC spokesperson said Feb. 6 that the company plans to respond to the FMC.