MSC Charged Unfair Detention and Demurrage and Improperly Handled Cargo, Supply Source Says
Mediterranean Shipping Co. (MSC) violated the Shipping Act by assessing detention and demurrage for periods that were outside the shipper’s control, shippers told the Federal Maritime Commission. The complaint, filed Feb. 14 by Impact Products and Safety Zone, both subsidiaries of Supply Source, alleged that MSC refused to divert shipments to less crowded ports and failed to extend the number of free days afforded when ports were congested from 2021 to 2022, leading to over $200,000 in financial damages.
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Supply Source said the charges assessed were “not just or reasonable because of circumstances outside” its control such as “congestion at ports and shortage of equipment.”
In addition to failing to divert shipments and failing to extend the number of free days, MSC also failed to provide “adequate facilities” for Supply Source products and for its other customers, the shippers said. Despite this, MSC continued to accept Supply Source goods.
Supply Source said that the FMC in Fact Finding Investigation 29 said that "'the purpose of demurrage and detention are to incentivize cargo movement'" (see 292205190035). MSC's charges and omissions that led to the charges were "incapable of incentivizing cargo movement and therefore unreasonable," Supply Source said.
MSC also didn't provide sufficient detail to “allow Supply Source to understand the reasons for the Charges and to be able to contest the Charges,” the shippers said.
If MSC’s practices aren't fixed, these practices will become "industry standard" and lead to a situation "where all carriers can impose unfair and unjust detention and demurrage charges," it said.
Supply Source charges MSC with failing to "establish, observe, and enforce just and reasonable practices" for handling its cargo and “unreasonable refusal to deal or negotiate,” the shipper said. It's asking for an investigation, an order finding that MSC violated the Shipping Act, an order requiring reparations for the financial damage, and any other relief the FMC deems “just and proper.”
MSC had previously been charged with violating the Shipping Act and charging unfair detention and demurrage by Dependable Highway Express in January (see 2401170077). MSC didn't respond to our request for comment.