Damco and Farrell Lines fined $3.7 million for container weight fraud.
Damco and Farrell Lines are both Maersk subsidiaries whose services were contracted by the US Transportation Command, the US Department of Defense (DoD)’s logistics unit. The contract required Damco and Farrell lines to transport cargo in and out of Afghanistan for the DoD and other government departments. The contract value was almost entirely based on shipment weights. The weight of each container was recorded on weight tickets which were measured against a certified commercial scale, and included with invoices.
Maersk subsidiary Damco was found guilty of falsifying 563 container weight tickets submitted by Farrell Lines. This was not the first time that Maersk’s US subsidiaries had been fined for swindling the US military out of money through false transportation charges. In 2012, Maersk had agreed to pay $31.9 million after it was alleged to have overcharged the US military for international shipments. In the former case, the US Department of Justice (DoJ) had stated that Maersk inflated invoices by overcharging for the connection of refrigerated containers to electricity sources at US military bases in Afghanistan, and at a port in Pakistan.