MSC Imposed Unfair Fees, Violated Shipping Act, Company Tells FMC

U.S.-based MVM Logistics said major shipping line MSC violated the Shipping Act by failing to provide MVM with “adequate” time to return containers and charging per diem fees for delays MSC had caused. In a complaint this week to the Federal Maritime Commission, MVM said MSC charged it about $800,000 stemming from unfair fees and failed to "establish, observe, and enforce just and reasonable regulations and practices relating to or connected with receiving, handling, storing, or delivering property."

MVM said MSC engaged in a range of unfair shipping and handling practices between August 2020 and February 2020. The logistics company said MSC provided export bookings but didn’t give MVM enough time to return containers and “constantly changed” their return dates, sometimes by more than three weeks. This forced MCM to pay for storage and chassis fees, MVM said.

The company also said MSC caused some of the delays and “used it as a source of enrichment.” The carrier “would issue bookings, but there would be not enough equipment at the terminal, forcing everyone to stay long hours in a line into the terminal or to hunt the streets for street turn containers and chassis,” MVM said. “Vessels [were] constantly delayed and all trucking companies were forced to keep the containers at their yards or pay for storage, when it was available.”

MVM said the terminal’s “receiving windows started shrinking and finally were reduced to one day or one shift.” And when the terminals were receiving, there was usually “huge congestion,” taking up to eight hours to return a single container, MVM said. The company said it had to request late gate permits every week and was subject to $200 late gate charges. “Since thousands of containers were to be return[ed] during the given late gate, just a fraction of it would make the gates of the terminal and the rest would be charged US$200.00 for trying to do their job,” MVM said.

After MVM “refused” to pay a per diem bill from MSC that totaled around $800,000, MSC in March revoked MVM’s access to its terminal, the complaint said. “Unfortunately, 95% of our clients used MSC and [we] lost all that business,” MVM said. The company eventually negotiated the per diem bill down to $380,000 but hasn’t regained terminal access. MVM said it became “insolvent” in March.

The FMC should order MSC to pay MVM reparations and interest for its “unlawful conduct” and relieve MVM from having to pay “unfair” per diem fees. MSC didn’t respond to a request for comment.