Photo: /yujie chen
The Danish owner of an international string of variety stores, Flying Tiger, has joined the list of shippers bringing legal action against providers of freight and logistics services over freight price hikes during the COVID-19 pandemic.
Flying Tiger has brought a lawsuit against Danish transportation and logistics provider DSV at the Maritime and Commercial Court in Copenhagen, demanding DKK 500 million ($72 million), according to finans.dk, and translated by the American Journal of Transportation.
The dispute is over a contract that Flying Tiger Copenhagen entered into with DSV shortly before the COVID-19 crisis began in 2020, which was for two years and included a fixed price for shipping containers.
But, according to Flying Tiger, DSV chose to raise prices when the pandemic hit, causing freight rates to skyrocket. The retailer, whose stores are often branded as simply “Tiger,” and offer online shopping too, also alleges that DSV did not deliver the space for containers that the provider had promised. Both claims represent a clear breach of contract, Flying Tiger alleges.
This is only the latest in a string of complaints and legal actions against providers of freight services accused of price-gouging during the pandemic. In 2023, the U.S Federal Maritime Commission recorded that it had received complaints against all of the top ten ocean container carriers between January 2022 and June 20, lodged by shippers who said the carriers had engaged in systematic price gouging and unfair practices.
Shippers say carriers attempted to cash in on the dramatic spike in spot rates that resulted from increased demand for household and other items during the COVID-19 pandemic, at the expense of their long-term customers.
Among the more dramatic actions was carried out by the now-bankrupt retailer Bed Bath & Beyond (BBB). The complaint against Yang Ming with the Federal Maritime Commission (FMC), seeking at least $7.7 million in damages, claimed “profiteering” by Yang Ming, which denies the allegations.
Read More:Flurry of FMC Complaints Reveals Widespread Accusations of Ocean Carrier Profiteering
This profiteering was particularly damaging to U.S. home goods retailer Bed Bath & Beyond, which was forced to file a Chapter 11 bankruptcy petition in April 2023. The retailer was, at last count, making claims against ocean carriers totaling more than $50 million mark because of two other known disputes with OOCL and Mediterranean Shipping Co.
The complaints have been deemed of “national significance” by an FMC judge.
