Peloton Files Lawsuit Against Shipping Partner Flexport, Citing “Millions of Dollars” in Unfair Fees

Peloton recently filed a complaint with 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” in unfair detention and demurrage (D&D) charges between 2020 and 2023.

Flexport is a global transportation and logistics company. The complaint alleges that Flexport failed to “establish, observe, and enforce fair and reasonable practices in receiving, handling, storing, and delivering Peloton’s goods,” resulting in unreasonable practices, illegal billing and unreasonable fees.

Peloton uses companies like Flexport to handle 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 fulfill its domestic transportation obligations, including, but not limited to, failing to timely remove Peloton containers from U.S. marine and intermodal terminals, by failing to timely deliver Peloton containers to their designated indoor locations. , and by failing to return empty containers within the applicable free time limits.

Due to Flexport’s shortcomings, Peloton had to use a third-party logistics provider to handle domestic transportation. Between 2020 and 2023, Flexport also billed Peloton for detention and demurrage fees for actions that Peloton claimed were within the scope of Flexport’s contractual duties.

The complaint states again:

“As a result of Defendant’s violations of the Marine Navigation Act, Peloton suffered injuries and monetary damages, including, but not limited to, thousands of improper D&Ds and related costs totaling millions of dollars .”

Peloton also requested that a hearing be held at the Federal Maritime Commission regarding their complaint.

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