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FMC Enforcement Precedents & Landmark Decisions

A curated guide to the most significant FMC enforcement actions, adjudicatory decisions, and civil penalty assessments shaping ocean transportation compliance. All summaries include hyperlinks to source materials.

$22.67M

Record Single Penalty

MSC — Jan 2026

$250K

Max Per Violation (OSRA 2022)

Demurrage/Detention

$100K

Max Knowing & Willful

Per violation

Active

FMC Enforcement Bureau

Since 1961

Record Penalty — January 2026

FMC v. Mediterranean Shipping Company (MSC) — $22.67 Million

On January 16, 2026, the FMC announced the largest civil penalty in its history against MSC — $22.67 million — for systematic violations of the Shipping Act's demurrage and detention billing requirements. The FMC's Bureau of Enforcement found that MSC had issued thousands of invoices that failed to comply with the requirements of 46 CFR Part 541, including failure to provide required invoice details, charging for periods when cargo could not be retrieved, and failing to maintain a compliant dispute resolution process.

This penalty was the direct result of the FMC's enhanced enforcement authority under OSRA 2022 and the implementing rule in 46 CFR Part 541 (effective May 28, 2024). It sent a clear signal that the FMC intends to aggressively enforce the new demurrage/detention requirements.

FMC News Release

Landmark Adjudicatory Decisions

Click any case to expand the full summary and significance analysis.

Civil Penalty Framework

The FMC assesses civil penalties under 46 U.S.C. § 41107. OSRA 2022 significantly increased the maximum penalties available. The FMC considers the following factors when determining the appropriate penalty amount:

Nature and gravity of the violation

More serious violations (e.g., systematic billing fraud) warrant higher penalties than technical violations.

Culpability of the violator

Knowing and willful violations are subject to penalties up to 4x the standard maximum.

History of prior violations

Repeat offenders face enhanced penalties and heightened scrutiny.

Ability to pay

The FMC considers the respondent's financial capacity to ensure the penalty is meaningful but not confiscatory.

Effect on competition

Violations that distort competition may warrant higher penalties to deter market-wide harm.

Cooperation with investigation

Voluntary disclosure and cooperation may result in reduced penalties, as reflected in consent agreements.

Analyze Your Compliance Risk

Upload a demurrage invoice, service contract, or bill of lading and ask the AI to assess your compliance exposure in light of these enforcement precedents.