Peloton recently filed a complaint through the Federal Maritime Commission against one of its shipping partners, Flexport International LLC.
In the complaint Peloton alleges that Flexport violated the Shipping Act of 1984, causing Peloton to incur “millions of dollars” of unfair detention &demurrage (D&D) charges between 2020 and 2023.
Flexport is a global transport and logistics company. The complaint alleges that Flexport failed to “establish, observe, and enforce just and reasonable practices relating to receiving, handling, storing, and delivering Peloton’s property,” which resulted in unreasonable practices, unlawful invoicing, and unreasonable charges.
Peloton enlists companies such as Flexport to manage the inland transportation of its products from marine terminals to the end user. The official complaint states that:
“From 2020 to 2023, Flexport repeatedly and chronically failed to properly perform its inland transportation obligations, including, but not limited to, failing to timely remove Peloton Containers from U.S. marine and intermodal terminals, failing to timely deliver Peloton Containers to their designated inland locations, and failing to timely return the empty containers within the applicable free time periods.”
Because of Flexport’s shortcomings, Peloton had to bring in a third party logistics provider to manage inland transportation. Between 2020 and 2023, Flexport also invoiced Peloton with detention & demurrage charges for actions Peloton claims were within the scope of Flexport’s contracted duties.
The complaint again states:
“As a result of Respondent’s violations of the Shipping Act, Peloton has sustained injuries and monetary damages, including but not limited to thousands of improper D&D and related charges totaling millions of dollars.”
Peloton has also requested a hearing be held at the Federal Maritime Commission regarding their complaint.
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