Bankrupt Firm Alleges That Carrier Charged Unfair Demurrage, Detention Fees
The New York-based entity formerly known as Bed Bath & Beyond Inc. has accused France-based ocean carrier CMA CGM of charging “unjust and unreasonable” demurrage and detention fees during the COVID-19 pandemic, according to a complaint filed Sept. 2 with the Federal Maritime Commission.
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During the pandemic, “CMA took advantage of disruptions to the container shipping sector and unfairly charged complainant” demurrage and detention fees “in circumstances where containers could not be timely picked up or returned for reasons outside of shippers’ control,” such as congestion and a lack of appointments and equipment at port terminals, the complaint said. “These improper penalties were particularly damaging to complainant, which was forced to file a Chapter 11 bankruptcy petition” in April 2023.
The complainant, a former big-box retailer now called 20230930-DK-Butterfly-1, said a “substantial majority” of the $385,324 in demurrage and detention charges it was assessed in 2021 and 2022 were unfair. It asked the FMC to determine reparations accordingly.
CMA CGM didn’t respond to a request for comment.
The former Bed Bath & Beyond filed a similar complaint against Hong Kong-based carrier BAL Container Line Co. in December (see 2501090002). BAL has denied the allegations.