FMC Judge Rejects Peloton? $33.7 Million Demurrage Claim Against Flexport
Source
American Shipper
Post Date
09/20/2026
A Federal Maritime Commission administrative law judge has rejected Peloton Interactive? bid to recover $33.7 million in detention, demurrage and related ges from Flexport. In an initial decision served September 9, Administrative Law Judge Mary Apostolakos Hervey found Peloton failed to prove that Flexport? practices violated the Shipping Act or caused the losses it claimed. Flexport was found not liable for reparations. The ruling is the latest in a growing number of FMC decisions stemming from the pandemic-era supply chain crunch, when severe port congestion, equipment shortages and inland bottlenecks triggered a wave of disputes over detention and demurrage ges. Peloton filed the case in 2024, arguing that Flexport improperly assessed detention and demurrage on thousands of shipments during the pandemic-era supply chain crunch. The company said Flexport should have borne ges tied to issues including chassis shortages, port congestion and inland transportation delays. Peloton sought $33.7 million, including $13.8 million in demurrage, $16.2 million in equipment detention and $3.7 million in yard and warehouse storage ges. The case largely turned on whether Peloton could show what caused the delays behind individual ges. Hervey said FMC precedent requires that kind of dispute to be examined on a container-by-container and day-by-day basis. The judge found Peloton? expert analysis fell short because it relied heavily on consolidated invoices covering multiple containers and did not provide enough detail to determine why individual ges were assessed. The ruling also rejected Peloton? argument that Flexport should generally be responsible for detention and demurrage on ?tore door?shipments. Hervey said the FMC has not adopted a blanket rule barring such ges, and responsibility still deps on the facts behind each delay. The record also showed Peloton contributed to some delays, including instances involving limited warehouse space, late unloading and containers that were not ready when truckers arrived to retrieve them. Peloton? separate claim that Flexport issued deficient detention and demurrage invoices after the Ocean Shipping Reform Act of 2022 took effect was also rejected because the company did not sufficiently identify the invoices and explain how they violated the law. Either party may file exceptions within 22 days. If the Commission does not review the ruling, the initial decision becomes the FMC? decision.
