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Home ›› Logistics ›› Shipping Freight ›› Shipping Lines ›› MSC Shipmanagement Fined $6m Over Concealed Engine Fault in Charleston Runaway

MSC Shipmanagement Fined $6m Over Concealed Engine Fault in Charleston Runaway

MSC Shipmanagement has been fined $6 million and placed on four years' probation after admitting to concealing a hazardous engine-control problem aboard the MSC Michigan VII and obstructing the US investigation into the vessel's June 2024 runaway transit through Charleston Harbor. The Cyprus-based operator must also conduct a root-cause analysis, while the NTSB's probable-cause investigation remains open.

iG
iGEN Editorial
August 11, 2026
MSC Shipmanagement Fined $6m Over Concealed Engine Fault in Charleston Runaway

MSC Shipmanagement has been fined $6 million and placed on four years' probation after admitting to concealing a hazardous engine-control problem aboard the MSC Michigan VII and obstructing the subsequent US investigation, according to Splash247.

Runaway transit through Charleston Harbor

The case stems from the MSC Michigan VII's runaway transit through Charleston Harbor in June 2024. According to Splash247, the boxship was outbound on the Cooper River when the crew lost control of the main engine. The vessel accelerated to between 16 and 17 knots, prompting authorities to evacuate the Arthur Ravenel Jr Bridge, clear nearby beaches and remove traffic from the shipping channel. The pilot managed to guide the ship beneath the bridge and into open water. The ship's wake injured two recreational boaters and damaged vessels and port facilities, with losses estimated at more than $500,000.

Investigation and guilty plea

MSC Shipmanagement, a Cyprus-based vessel operator, pleaded guilty to failing to report the hazardous condition to the US Coast Guard and obstructing an investigation by the Coast Guard and the National Transportation Safety Board (NTSB). Splash247 reported that MSC Shipmanagement and chief engineer Fernando San Diego San Juan admitted that engineers had been manually adjusting the linkage rod between the engine governor and fuel rack when the engine failed to match orders from the bridge. None of the engineering crew was qualified to carry out the work. The nuts at both ends of the rod had been loosened to make adjustments easier, while locking washers intended to keep the assembly in place had been removed. The linkage disconnected during the outbound transit, leaving the main engine unable to slow down.

Penalties and conditions

The court ordered MSC Shipmanagement to pay a $6 million fine and serve four years' probation, and to carry out a root-cause analysis covering the machinery problems aboard the ship. San Juan, who previously pleaded guilty to the same offences, was fined $2,000. Splash247 reported that San Juan later denied that the crew had adjusted the rod or experienced delays between bridge commands and engine response. The chief engineer also told three crewmembers to repeat the same account to investigators.

Penalty / key fact Detail
MSC Shipmanagement fine $6 million
MSC Shipmanagement probation 4 years
Chief engineer fine $2,000
Vessel speed during runaway 16–17 knots
Damage estimate More than $500,000
Vessel detention in Charleston About six weeks

Operational impact for shippers and carriers

The Coast Guard detained the MSC Michigan VII for about six weeks before allowing the vessel to leave Charleston under a three-tug escort, Splash247 reported. The NTSB's probable-cause investigation remains open. For freight forwarders and ocean carriers, the case illustrates the operational consequences of machinery defects on containerships: a detained vessel, a controlled departure under escort, and port activity in Charleston Harbor disrupted by the evacuation of the Arthur Ravenel Jr Bridge and removal of traffic from the shipping channel.

Watch list

  • NTSB probable-cause investigation remains open and could release further findings.
  • Court-ordered root-cause analysis covering machinery problems aboard the MSC Michigan VII.
  • MSC Shipmanagement's four-year probation period and compliance with court conditions.

Sources: Splash247 Maritime

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