JAPAN's Ocean Network Express (ONE), headquartered in Singapore, is to pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for allegedly violating the interpretive rule on detention and demurrage, according to a settlement made public last week.

The deal was reached prior to the FMC initiating formal enforcement action against the carrier. In addition to the monetary penalty, ONE will either refund or waive the contested detention and demurrage fees to shippers involved in the private case.

As part of the settlement, ONE did not admit to any violation of the law, the FMC said in a statement, according to media reports.

Separately, the FMC reached a settlement agreement with Wan Hai Lines agreed to pay $950,000 in civil penalties for failing to observe and enforce just and reasonable practices regarding its charges related to empty container returns.

In addition to payment of a civil penalty, Wan Hai refunded the impacted shippers all detention charges collected under the invoices at issue and has implemented corrective actions to prevent future violations and ensure compliance with the Commission's Interpretive Rule on Detention and Demurrage.

"The agreements being announced today send a clear message to international shipping community that ocean carriers must fully comply with the US legal obligations.

"I commend our Bureau of Enforcement, Investigations, and Compliance for their efforts, which resulted in both meaningful civil penalties, and relief for impacted shippers," said FMC c hairman Daniel B Maffei.