Bed Bath & Beyond Claims Shipping Company ‘Exploited Customers’

Bed Bath & Beyond is seeking reparations from a shipping company it says “exploited customers.”

The bankrupt retailer filed its complaint against Orient Overseas Container Line Limited and OOCL (Europe) Limited (OOCL) with the Federal Maritime Commission (FMC) on April 27.

“As alleged herein, respondent has exploited price inflation in container shipping during the COVID-19 pandemic and unjustly and unreasonably exploited customers,” Bed Bath & Beyond said in the complaint. “This has resulted in vastly increased profitability on the part of the respondent, at the expense of shippers and the U.S. public generally, which bears increased freight cost in the form of inflation.”

OOCL did not immediately reply to PYMNTS’ request for comment.

A spokesperson for OOCL told the Wall Street Journal (WSJ) that the carrier maintains regulatory compliance and strong customer relationships.

“We will continue to work with our customers and all relevant authorities to resolve any disputes in a professional, efficient and amicable manner,” OOCL Assistant Manager, Investor Relations and Public Relations Kalia Wong said.

In its complaint, Bed Bath & Beyond said OOCL took advantage of the pandemic-era supply chain crisis by allocating vessel space contracted for by the retailer to other shippers to boost its profits, assessing demurrage and detention charges when the retailer could not pick up or return containers due to circumstances beyond its control, and coercing higher prices for transportation already covered under a service contract.

“Upon information and belief, respondent’s practices were knowing and deliberate, and were not due to an absence of available cargo space or necessitated by any other circumstance outside of respondent’s control,” Bed Bath & Beyond said in the complaint.

As PYMNTS reported in December 2021, supply chain issues plagued the global operation that fills shoppers’ carts during the pandemic.

The industry was challenged by worldwide worker shortages, inexperienced crews, virus fears and vaccination debates, making it difficult for the transportation sector to move goods.

Bed Bath & Beyond’s filing of the complaint with the FMC came days after the retailer declared bankruptcy months after warning about its future.

The 52-year-old home goods seller did so after failing to secure funding that would have allowed it to stay afloat.