Monday, June 12, 2017

Mexico Fines Shipping Lines for RoRo Freight Collusion

32 Million Dollar Punishment Handed Out
Shipping News Feature
MEXICO – The Mexican antitrust commission COFECE, has fined 7 international shipping lines a total of nearly 582 million pesos (approximately $32 million) following allegations that the shippers violated the country's competition laws by colluding to segment the market of ocean shipping services for RoRo cargo. The carriers involved have all seen heavy fines previously levied against them for a variety of anti-competitive practices worldwide, with each collecting several million dollars in fines as they go.

Chilean firm CSAV, Japanese shippers K Line and its regional office, K Line America, MOL and its North American business Mitsui OSK Bulk Shipping (MOBUSA), Nippon Yusen Kabushiki Kaisha (NYK) and Norwegian headquartered Wallenius Wilhelmsen Logistics (WWL) apparently agreed to carry RoRo cargo on different routes involving Mexican ports, entering into a total of nine agreements between 2009 and 2015 which saw the shippers divide the market amongst themselves, resulting in reduced competitive pressure and increased costs to the local automotive sector.

Companies Involved Route Period of Participation
K Line, NYK  

Mexico - Argentina

Mexico - Brazil

2011 - 2012
K Line, K Line America, MOL, MOBUSA  

Mexico - Argentina

Mexico - Brazil

2011 - 2012
K Line, MOL   

Mexico - Argentina

Mexico - Brazil

 March - December 2012
MOL, NYK  

Mexico - Argentina

Mexico - Brazil

Mexico - Chile

 2012 - 2013
MOL, WWL  Mexico - Brazil  N/A 
CSAV, NYK  

Mexico - Argentina

Mexico - Brazil

Mexico- Colombia

2013 - 2015 
NYK, K Line, K Line America Mexico - Japan 2010 - 2012 
NYK, K Line , MOL Japan - Mexico  2010 - 2012 
NYK, K Line  

Thailand - Mexico

Indonesia - Mexico

October 2011 - March 2012 
NYK, WWL, MOL  Europe - Mexico  2012