Shipping Logistics

Wan Hai faces $950,000 fine under revised FMC settlement over detention charges

March 16, 2023

Taiwan-based carrier Wan Hai is paying a settlement of $950,000 for wrongly penalizing 21 detention charges. Under the agreement, Wan Hai would also be forced to pay undisclosed restitution to the shippers in question and be limited from assessing any detention charges when containers cannot be returned. This sends a wake up call to the other carriers that authorities will use their investigative powers in force. FMC rejected the settlement cause it put the burden of proof onto the carriers and making them set "reasonable" detention and demurrage charges policy.

The updated settlement would further set limitations on Wan Hai’s assessment of detention charges, and the carrier must “cease and desist from knowingly assessing detention charges” in situations when it fails to provide an equipment return location, identify a return location that is not accepting chassis, or where appointments are unavailable for equipment return.


SOURCE: Journal of Commerce

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