MSC Asks FMC to Dismiss Congestion Surcharge Order, Complaint
Major shipping line Mediterranean Shipping Co. asked the Federal Maritime Commission to dismiss an order stemming from a refund owed to SOFi Paper Products. MSC said it refunded SOFi in full and the dispute should be resolved.
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MSC's Feb. 23 petition was in response to an FMC order earlier this month that required MSC to prove why it shouldn't be ordered to refund a congestion surcharge that allegedly violated U.S. shipping regulations. The order also asked MSC to "show cause" for why the FMC shouldn’t “impose a civil penalty” against the shipping line (see 2302060020).
MSC said it accepted SOFI's $1,000 settlement terms in November, but before the shipping line sent the refund to SOFi, SOFi asked for an additional $500 for "company time spent on this and time without the money." MSC sent the check for the original $1,000 offer "on or around" Feb. 13, 10 days after the FMC ordered MSC to provide a justification, but did not pay the additional $500. The additional $500 is "unjustified, irrelevant and, most importantly, insufficient to maintain in existence a justiciable controversy," MSC said in the petition.
"Given the settlement achieved between the parties and the long-standing policy of the FMC of approving settlements and consequently terminating the corresponding action pending, MSC respectfully requests that the Commission dismiss the Order," MSC said.
SOFi Paper Products did not respond to our request for comment.