Wednesday, May 30, 2018

Yet More Fines for RoRo Car Carriers Caught in Cartel Shipping Operations

Litany of Shame Continues for Lines Which Operated Antitrust Services
Shipping News Feature
PERU – The Peruvian competition authority Indecopi, has imposed a total fine of S/47 million (circa $14 million) on six international shipping companies, following allegations that the companies violated the country's competition laws by colluding with competitors to rig the bids on RoRo shipments to and from Peru between 2001 and 2015. The ocean car carriers involved have all seen heavy fines previously levied against them for a variety of cartel type activity worldwide, each collecting millions in fines as they go.

Chile's Compañía Marítima Chilena (CMC), South Korea's Eukor Car Carrier (Eukor), and Japan's Kawasaki Kisen Kaisha (K-Line), Mitsui OSK Lines (MOL) and Nippon Yusen Kabushiki Kaisha (NYK), are all accused of participating in a cartel between 2001 and 2012, with contracts lasting to 2015. Compañia Sudamericana de Vapores (CSAV) also formed part of the alleged cartel but were granted leniency and exemption from the fine, along with NYK, which had its penalty reduced, for their respective assistance in the case.

In its investigation, Indecopi found that when a manufacturer or importer invited shipping lines to submit a tender or made a request for quotations, the shippers coordinated so that they refrained from participating by offering higher quotes or submitting offers in ‘less attractive conditions’, with the agreements affected more than 55,000 vehicles, from Asia, Europe, and America.

Indecopi imposed fines totalling S/47,847,277.49 (approximately $14.6 million) on the 5 companies. The fines are as follows:

  • CMC – $25,000
  • Eukor – $5.3 million
  • K Line – $2.8 million
  • MOL – $2.43 million
  • NYK – $4 million

So continue the swingeing penalties levied by the authorities across the world for the litany of corruption which it seems was endemic in the past decade or so amongst certain shipping lines.