Bankrupt Firm Says It Was Hurt by Unfair Demurrage and Detention Fees
The New York-based entity formerly known as Bed Bath & Beyond Inc. has accused Hong Kong-based carrier BAL Container Line Co. of charging “unjust and unreasonable” demurrage and detention fees during the COVID-19 pandemic, according to a complaint released by the Federal Maritime Commission Jan. 8.
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“These improper charges were particularly damaging to complainant, which was forced to file a Chapter 11 bankruptcy petition on April 23, 2023," the 14-page document says.
During the pandemic, “BAL took advantage of disruptions to the container shipping sector and unfairly charged its customers detention and demurrage costs for reasons outside of shippers’ control,” such as port congestion, a lack of appointments and equipment shortages that made it difficult to pick up containers at ports or return empty containers promptly, the complaint alleges.
The complainant, now called 20230930-DK-Butterfly-1, says that a “substantial majority” of the $9.5 million in demurrage and detention charges it was assessed in 2021 and 2022 were unreasonable. It asks the FMC to determine reparations accordingly.
BAL declined to comment on the complaint.