The Federal Maritime Commission has increased the civil penalty on Mediterranean Shipping Co (MSC) to more than US$22 million for overcharging late fees on non?operating reefer containers, up from US$16 million, reports New York's Journal of Commerce.

The FMC's three commissioners reversed part of a February 2025 ruling by an administrative law judge, finding that the overcharges were too frequent to be considered a billing mistake. The investigation showed MSC charged shippers late fees on non-operating reefers at the higher rate of operating reefers during 2021.

MSC's tariff did not specify late fees for non-operating reefers, but the company billed them as dry containers. MSC said the issue stemmed from billing software errors and refunded US$2 million to customers. The judge had ruled the billing was a mistake, noting only 23 per cent of invoices carried the overcharges, and did not impose penalties.

The commissioners, however, sided with the FMC's enforcement arm, citing 2,629 instances of overcharges, averaging 10 per day for more than eight months. They said the charges amounted to a practice, even if not a willful violation, and were unreasonable given non-operating reefers do not require the same care as operating units.

https://www.shippingazette.com/news?news_id=9260100000348