FM Insurance is taking MSC Mediterranean Shipping to court over a missing $251,297.95 shipment, putting the spotlight on cargo risk and insurer recovery in global trade.
On September 2, 2025, FM Insurance Company Limited and FM Insurance Europe S.A. filed a complaint in the Southern District of New York, claiming that MSC Mediterranean Shipping Company S.A. failed to deliver a shipment of Milwaukee tools, batteries, and chargers. The goods, packed into 832 cartons, were supposed to travel from Yantian, China, to Olive Branch, Mississippi, with a port of discharge at Long Beach, United States. According to FM Insurance, the shipment either was never delivered or was not delivered in good order and condition.
The case is straightforward, but the stakes are clear for anyone in the business of insuring cargo. FM Insurance says it paid out the claim for the loss or damage to the shipment and, as a result, is pursuing recovery from the shipping company as the subrogated insurer and assignee of Milwaukee Electric Tool Corporation. The insurer’s move is a standard example of subrogation - when an insurer pays a claim and then seeks to recover that amount from the party it believes is responsible for the loss.
The case highlights the risks and responsibilities in international shipping. FM Insurance’s complaint is based on US maritime law, specifically the Carriage of Goods by Sea Act and, if necessary, the Harter Act. Both set out the obligations of carriers and the rights of parties involved when cargo is lost or damaged during transit.
The facts, as stated in the complaint, are as follows: the shipment was delivered to MSC Mediterranean Shipping Company S.A. in good order and condition, a clean bill of lading was issued, and the contract of carriage required delivery in the same good order and condition. FM Insurance claims that all obligations under the contract were performed by the insured parties. The complaint alleges that MSC Mediterranean Shipping Company S.A. breached its obligations by failing to deliver the shipment, or by delivering it in a damaged state.
FM Insurance is seeking to recover $251,297.95, the amount it paid out for the loss or damage. The complaint does not include specific insurance policy clauses but states that the plaintiffs are entitled to maintain the action as subrogated insurers and assignees.
For the insurance industry, this case is a reminder of the importance of subrogation and the challenges of managing risk in international shipping. It also underscores the need for clear contracts and documentation. A single undelivered container can quickly become a significant dispute.
At this stage, these are allegations made by FM Insurance Company Limited and FM Insurance Europe S.A. MSC Mediterranean Shipping Company S.A. will have the opportunity to respond as the case moves forward. For those in the insurance business, especially in marine and cargo, this case offers a practical look at how claims can develop when shipments go missing or arrive damaged. The outcome will be watched closely for its implications on future claims and recovery actions.
