Service contract violation
Search documents
Another Carrier Joins Bed Bath & Beyond’s Growing FMC Docket
Yahoo Finance· 2026-01-06 15:41
Core Viewpoint - Bed Bath & Beyond's former corporate entity has filed a complaint against Hyundai Merchant Marine for alleged service failures and excessive fees during the pandemic [1][2]. Group 1: Complaint Details - The complaint was filed with the Federal Maritime Commission, alleging violations of the U.S. Shipping Act by Hyundai Merchant Marine [1]. - The complaint targets HMM for a pattern of service failures, coerced surcharges, and punitive billing practices during the pandemic [2]. - The core of the complaint involves two service contracts for the shipping years 2020-2021 and 2021-2022, which included minimum quantity commitments of 1,000 FEUs and 2,000 FEUs respectively [3]. Group 2: Service Failures and Financial Impact - HMM allegedly failed to provide the contracted vessel space, resulting in a shortfall of over 60 FEUs in the first year and more than 530 FEUs in the second year [4]. - The retailer claims to have incurred over $9.3 million in additional costs due to these service failures across the two years [4]. - The complaint also accuses HMM of conditioning access to shipping space on the payment of peak season surcharges and other fees, contrary to the contract terms [5]. Group 3: Pricing and Performance Issues - Emails referenced in the complaint indicate that HMM offered limited weekly allocations only if Bed Bath & Beyond agreed to increase surcharge levels, with charges rising from $1,000 to $1,500 per container [6]. - Despite paying the additional fees, the performance of HMM did not improve significantly, according to the former retailer [6].