Wednesday, February 14, 2018

RoRo Shipping Line Uncovers More Corruption as Another Scandal is Set to Rock Sector Yet Again  

Will the Ocean Transport Sector Ever Clean Up its Act as Japanese Carrier Investigates In House?

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Shipping News Feature JAPAN – CHINA – EUROPE – Nippon Yusen Kabushiki Kaisha (NYK) is investigating the possibility that former, locally-hired management personnel in NYK Car Carrier (China), its consolidated subsidiary located in Shanghai which is engaged in finished-car logistics business in Asia, have committed unlawful acts with regard to expenditure or embezzlement. This is not the first time NYK's vehicle transport operation has come under fire in cases involving corruption, last year's South Korea RoRo cartel case alone cost the group $4.3 million dollars whilst in Australia it was hit for A$25 million.

The Company has established an investigation committee to investigate the latest matter, consisting of Tadaaki Naito (President, Representative Director and President Corporate Officer) as the Chairman of the Committee; Yoshiyuki Yoshida (Director, Chief Compliance Officer and Managing Corporate Officer), Yutaka Higurashi (Corporate Officer) and Yuichi Sakata (Attorney at Abe & Sakata Legal Professional Corporation) as the members of the Committee. It is currently estimated that the overall cost to the group of this matter in the final Consolidated Financial Results will be approximately JPY 2 billion, around $18.5 million, in net losses.

As the Japanese carrier begins its investigation into its Chinese business division, NYK is also facing the prospect of a hefty fine in Europe along with Japanese competitors, now partners, in the ONE network- K Line and MOL, Norwegian shipping line Wallenius Wilhelmsen Logistics (WWL) and South Korean EUKOR, themselves no strangers to penalties for corruption with regard to auto transport. The parties have been accused of participating in a long-running ocean freight conspiracy to rig bids on roll-on/roll-off cargo, similar to cases seen around the world, even indeed in China where this latest scandal has arisen.

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