Your Position:Home>News>Industry News>Wan Hai faces $950,000 fine for wrongfully applying detention charges

Wan Hai faces $950,000 fine for wrongfully applying detention charges

Wan Hai faces $950,000 fine for wrongfully  applying detention charges

Wan Hai faces $950,000 fine for wrongfully applying detention charges.

Wan Hai is set to pay a $950,000 fine as part of a proposed settlement with the Federal Maritime Commission (FMC) over claims that it wrongfully charged detention penalties to US shippers on 21 occasions in 2021. The penalty is higher than the $850,000 proposed in May following a 14-month investigation by the FMC. 

The agreement, which requires Taiwan- based Wan Hai to pay undisclosed restitution to the shippers in question and going forward desist from assessing any detention charges when containers cannot be returned.

The FMC decision to seek a higher penalty sends a clear message to other carriers that the FMC will pursue claims where carriers are accused of applying unfair practices. This approach is mirrored by the proposed legislation highlighted immediately below.