Bed Bath & Beyond files complaint against Yang Ming

Date: Wednesday, September 13th, 2023
Source: Splash 247

Bankrupt retailer Bed Bath & Beyond has filed a complaint with the US Federal Maritime Commission (FMC) against Taiwanese shipping company Yang Ming seeking reparations from the firm for not shipping 85% of its contracted cargo.

Bed Bath & Beyond entered a service contract with Yang Ming covering the period from May 1, 2021, through April 30, 2022. The service contract set its minimum quantity commitments and service commitments at 1,000 feu, corresponding to an average monthly allocation of 83.33 feu.

The retailer stated in the complaint that, for the duration of the deal, Yang Ming provided only 149 feu of space which was 85% less than committed. It also alleged that the shipping company failed to carry any containers for Bed Bath & Beyond during the first month of the deal, and only 3.38 feu during the second month.

As a result of the 851 feu shortfall, the retailer was forced to seek carriage from other sources at higher rates or forgo shipments entirely. Bed Bath & Beyond alleged that the shortfall caused damages of at least $6.65m.

The US firm also claimed that it was forced to pay Yang Ming an excess cost of approximately $294,841 as a result of Yang Ming’s imposition of peak season surcharges as well as amounts up to or exceeding $647,221 in demurrage charges and $99,569 in detention charges.

In total, the injuries alleged in the complaint amount to or exceed $7.68m in addition to other injuries, including lost profits, to be calculated at trial.

Based on shipment capacity, Yang Ming is the ninth-largest carrier in the world. According to its public statements, it operates a fleet of 93 vessels with a 7.926m dwt capacity and an operating capacity of 705,000 teu. Yang Ming is also a member of THE Alliance, the second-largest global shipping alliance, with a combined deployed capacity of 3.03m teu, representing 12% of global capacity.

Earlier this year, Bed Bath & Beyond claimed over $30m from Hong Kong’s Orient Overseas Container Line (OOCL) over exploitative and unjust business practices during the pandemic.

[Read from the original source.]