Global cargo shipping firms raided in South Africa over suspected collusion

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Global cargo shipping firms raided in South Africa over suspected collusion

12:40 CAT | 28 Sep 2016

File photo / The South African Competition Commission is today conducting a search and seizure operation at the premises of six cargo shipping companies operating in the Western Cape and Kwazulu-Natal

Six of the world’s biggest container shipping companies were raided by South African authorities on Wednesday on suspicion of colluding to inflate rates between Asia and South Africa, the country’s Competition Commission said.

The six companies comprise local subsidiaries of Denmark’s Maersk, Portugal’s Mediterranean Shipping Company, France’s CMA CGM Shipping, Germany’s Hamburg Sud, Singapore-based Pacific International Line and Maersk unit Safmarine, the commission said in a statement.

It said the firms were suspected of engaging in collusive practices to fix incremental rates on the shipment of cargo from Asia to South Africa.

“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping liners in this region results in inflated prices for cargo transportation,” Competition Commissioner Tembinkosi Bonakele said.

Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region‚” said Tembinkosi Bonakele.

A search and seizure operation focused on premises of the six firms will involve confiscating documents and electronic data and follows a tip-off by a member of the public, the commission said.

EU antitrust regulators in July accepted an offer from Maersk and 13 competitors to change their pricing practices in order to stave off possible fines.

Source: Reuters / TMG Digital