In a complaint to the Federal Maritime Commission, exercise equipment retailer Peloton has accused logistics service provider Flexport of failing to move its cargo in a timely manner over a roughly three-year stretch, causing “millions” in unreasonable, improper demurrage and detention (D&D) charges.

In Docket No. 24-19, received by the FMC May 3, Peloton alleges that, as a result of wrongful conduct by Flexport, Peloton incurred substantial injuries and monetary damages, including improper charges for D&D.

According to the complaint, Peloton and Flexport were parties to an agreement for transportation of goods whereby Flexport would transport Peloton containers between foreign ports and U.S. ports, and on to designated U.S. inland locations.

Peloton says that, between 2020 and 2023, Peloton paid thousands of individual D&D and other related charges in connection with Flexport’s transportation of Peloton containers, which were improperly invoiced by Flexport in violation of the Shipping Act.

“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,” the complaint alleges.

Because of Flexport’s failure to properly perform its inland transportation obligations, Peloton says it was forced to engage a third-party logistics provider to manage the inland intermodal transportation of certain Peloton containers. 

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Pelton says Flexport assessed D&D charges against Peloton and Peloton containers without first undertaking an evaluation as to whether Flexport was responsible for the charges or whether its acts or omissions were a cause or contributing factor to the charges. It also says Flexport assessed the D&D charges against Peloton and Peloton containers in circumstances where Peloton was not the party responsible to pick up, move, or return the containers.

Peloton alleges Flexport’s invoices and billing information lacked adequate detail to determine the basis and responsibility for the individual D&D charges.

“As a result of Flexport’s wrongful conduct, Peloton incurred substantial injuries and monetary damages, including but not limited to paying improper charges for D&D, with charges and damages continuing to be tabulated as of the filing of the Complaint,” the complaint states.