Major shipping lines under fire for price fixing
Competition Commission announces intention to prosecute
SOUTH AFRICA: The Competition Commission is referring a complaint against eight major shipping lines operating between South Africa and Asia for prosecution.
The complaint relates to a period of ten years from 2008 to 2018, when the companies fixed rates charged for the shipment of general cargo from South African to Asia and back, as well as between South Africa and West Africa.
The companies facing prosecution include Maersk South Africa, Mediterranean Shipping Company, CMA CGM Shipping Agencies South Africa, Pacific International Lines South Africa, Mitsui OSK Lines South Africa, Evergreen Agency South Africa, COSCO Shipping Lines South Africa and K Line Shipping South Africa.
The identified conduct, which found that the companies all charged the same General Rate Increases (GRI) for the the routes from Shanghai, Ningbo and Shekou to Durban as well as from Durban to Hong Kong and from Qingdao to Durba, is in contravention of the Competition Act
"The dismantling of the cartel will reduce the price of goods imported to South Africa for the benefit of consumers and will also reduce the costs of exports out of South Africa, which will, in turn, render the South African exports competitive in the world markets,” said Commissioner Doris Tshepe.
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