Ex-Bed Bath & Beyond Accuses Carrier of Violating Service Contracts, Charging Unfair Fees
The New York-based entity formerly known as Bed Bath & Beyond Inc. has accused South Korean ocean carrier HMM Co. of “systematically failing" to meet its service commitments under 2020 and 2021 contracts and unfairly charging millions of dollars in demurrage and detention fees during the COVID-19 pandemic, according to a complaint filed Dec. 30 with the Federal Maritime Commission.
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The complainant, a bankrupt former big-box retailer now called 20230930-DK-Butterfly-1, said the service commitment shortfalls under the two contracts persisted even after it agreed to pay HMM $3.3 million in "extra-contractual" surcharges. As a result of those shortfalls, it was forced to buy cargo space on the open market at high prices, resulting in extra costs of $9.4 million, the complaint says.
The complainant also contends it was forced to pay $4.7 million in demurrage and detention fees when its ability to pick up containers or return empty ones was constrained by factors beyond its control, “such as congestion at ports, shortage of equipment, and HMM’s own failure to schedule appointments for picking up containers.”
The complaint seeks “reparations for the unlawful conduct alleged herein,” payment for attorneys’ fees and “any other sum the FMC determines to be proper.” It asserts that HMM's practices must be addressed to ensure that other carriers don't conclude that such behavior is acceptable.
HMM didn’t respond to a request for comment.
In March 2025, an FMC judge approved a confidential agreement to settle similar allegations that the same complainant made against ocean carrier Mediterranean Shipping Co. (see 2503210001).