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The US Federal Maritime Commission (FMC) has awarded a record level of reparations to the administrator of bankrupt retailer Bed Bath & Beyond, following a lengthy investigation into the commercial practices of container carrier OOCL during the Covid-19 pandemic. The regulator ordered the carrier to pay USD 45.6 million, marking the largest single damages award in FMC history.

While the administrator’s original claim of over USD 165 million was largely rejected, the FMC ruled in favour of the complainant on key elements, finding that OOCL had acted inconsistently with its contractual obligations and engaged in a “refusal to deal”. The Commission also identified elements of “retaliation” by the carrier. The damages awarded were based on specific instances where the carrier’s service was deemed not to be in accordance with agreed service contracts.

The case stems from broader allegations that carriers exploited the extraordinary market conditions during the pandemic. The administrator argued that OOCL failed to meet minimum quantity commitments over an extended period and that Bed Bath & Beyond was forced to secure capacity at significantly higher rates. Additional costs were incurred through detention and demurrage policies, while the carrier allegedly restricted the retailer’s ability to retrieve its cargo.

The ruling may have wider implications for a series of similar complaints currently before the FMC. Butterfly-1, acting on behalf of Bed Bath & Beyond, has also filed claims against several other carriers, including BAL Container Lines, Evergreen, HMM, MSC and Yang Ming. These cases raise comparable concerns regarding contractual performance and pricing practices during the pandemic period.

In parallel, other legal actions are underway across the sector. Cornerstone Brands and QVC are seeking USD 18.1 million from ONE, while Yang Ming faces a USD 14.7 million claim from retailer Dollar General over alleged failures to meet minimum volume commitments. Together, these cases point to a broader effort by shippers to recover losses linked to pandemic-era market disruptions.

However, the threshold for pursuing such claims remains high. Industry sources note that the cost and complexity of legal proceedings often outweigh potential recoveries, leaving the risk-reward balance tilted in favour of carriers. Statutory limitation periods further constrain the ability of shippers to bring forward claims.  Nevertheless, CLECAT notes that the FMC’s decision sets an important precedent.