Friday, October 4, 2013

More Cartel Fines Faced by Freight Forwarding, Shipping and Logistics Groups

Once Again Millions of Euros Levied for Anti-Competitive Behaviour
Shipping News Feature

SPAIN – Yet again we see leaders in the shipping and forwarding community being hit with massive fines from the authorities for cartel type behaviour. The rash of prosecutions we have witnessed over the past couple of years have accumulated staggering amounts of cash for those who preside over the markets but rarely seem to compensate the end users who are the ultimate losers in these deals. This time it is the Spanish Competition Commission (CNC) which has fined several shipping companies, forwarders and freight industry associations, over €43 million for fixing the rates of container transportation in and out of the Port of Valencia between 1998 and 2011.

CNC found that those involved in the anti-competitive behaviour, had distorted the ‘normal operation of supply and demand for container shipping services consistently and repeatedly’ with agreements to standardise the prices of road transport along with other activities that constrained the market.

Hit the hardest by the fines was international freight forwarders association ATEIA - OLT Valencia, which was ordered to pay over €13.1 million. Container transport associations, ELTC, TRANSCONVAL and Transcont Valencia were fined €12.6 million, €9.9 million and €3 million, respectively ; Valencia shipping association, ANV, €3.3 million; Noatum Container Terminal, €561,000; TCV Stevedoring Company, €403,000; the federation of transport entrepreneurs and logistics, FVET, €200,000; Mediterranean Shipping Company – Valencia €252,000; and the Port of Valencia, €100,000.

For any readers interested in learning more about companies caught up in the latest purges and the billions of euros and dollars involved, simply type a suitable keyword (such as cartel) into the News Search box at the head of any page on the Handy Shipping Guide website.