MSC Shipmanagement Fined $6M for Concealing Engine Defect and Obstructing Charleston Runaway Investigation
Key Takeaways
- •MSC Shipmanagement was fined $6 million and placed on four years of probation after pleading guilty to concealing a hazardous engine defect and obstructing a US federal investigation.
- •The June 2024 incident in Charleston Harbor saw the MSC Michigan VII lose engine control and surge at 16 to 17 knots, injuring two recreational boaters and causing over $500,000 in damages.
- •Unqualified engineering crew members had removed locking washers and loosened nuts on an engine linkage rod, which disconnected during transit and rendered the main engine incapable of slowing down.
- •Chief engineer Fernando San Diego San Juan denied the crew's modifications and directed three crew members to provide false accounts to investigators, resulting in a $2,000 fine.
- •The NTSB's probable-cause investigation remains open, and MSC Shipmanagement must complete a root-cause analysis addressing the machinery failures as part of its sentencing.

MSC Shipmanagement, a Cyprus-based vessel operator within the Mediterranean Shipping Company group — the world's largest container shipping line by fleet capacity — has been fined $6 million and placed on four years' probation after pleading guilty to concealing a hazardous engine-control defect aboard the containership MSC Michigan VII and obstructing the subsequent US federal investigation.
The company admitted to failing to report the hazardous condition to the US Coast Guard and impeding a joint investigation conducted by the Coast Guard and the National Transportation Safety Board (NTSB). As part of the sentencing, MSC Shipmanagement is required to complete a root-cause analysis addressing the machinery failures on the vessel.
Chief engineer Fernando San Diego San Juan, who separately pleaded guilty to the same charges, was fined $2,000.
The case traces back to the MSC Michigan VII's uncontrolled transit through Charleston Harbor in June 2024. Charleston is one of the busiest container ports on the US East Coast, and the incident unfolded during a peak shipping period. The containership was navigating outbound on the Cooper River when the crew lost command of the main engine. The vessel surged to speeds between 16 and 17 knots — far exceeding typical harbor transit speeds — prompting authorities to evacuate the Arthur Ravenel Jr. Bridge, clear adjacent beaches, and clear all traffic from the shipping channel.
A harbor pilot successfully guided the ship beneath the bridge and into open waters. However, the vessel's wake injured two recreational boaters and caused damage to other vessels and port facilities, with total losses estimated at more than $500,000.
MSC Shipmanagement and San Juan acknowledged that engineering crew members had been manually adjusting the linkage rod connecting the engine governor to the fuel rack after the engine failed to respond to bridge commands. None of the engineering crew was qualified to perform the work. Nuts at both ends of the rod had been loosened to facilitate adjustments, and locking washers designed to secure the assembly had been removed entirely.
The linkage disconnected during the outbound transit, rendering the main engine incapable of slowing down.
San Juan subsequently denied that the crew had modified the rod or that delays existed between bridge orders and engine response. He also instructed three crew members to provide investigators with the same account. The obstruction of a federal investigation carries particular weight under US maritime enforcement, as the Coast Guard relies on accurate crew reporting to assess vessel safety and determine whether ships pose ongoing risks to ports and waterways.
The Coast Guard detained the vessel for approximately six weeks before permitting it to depart Charleston under a three-tug escort. The NTSB's probable-cause investigation remains open, and the four-year probation term means MSC Shipmanagement will face ongoing compliance scrutiny from US authorities during that period.
Source: Splash247