The Competition Commission has referred a price-fixing complaint against eight cargo shipping companies to the Competition Tribunal for prosecution.
The referral does not constitute a finding of wrongdoing, and the companies will be able to present their defences before the Tribunal.
In a statement issued on Tuesday, the Commission said it had completed an investigation into alleged collusion involving general rate increases (GRIs) on several South Africa-Asia and West Africa trade routes.
The companies referred to the Tribunal are Maersk South Africa, Mediterranean Shipping Company, CMA CGM Shipping Agencies South Africa, Pacific International Lines South Africa, Mitsui O.S.K Lines South Africa, Evergreen Agency South Africa, COSCO Shipping Lines South Africa and K Line Shipping South Africa.
“The respondents are global container shipping lines involved in shipping cargo for import and export purposes across the globe, including South Africa. They are alleged to have engaged in the fixing of the rates called general rate increase charged to customers for the shipment of general cargo enroute from South Africa to Asia and back, and from South Africa to West Africa and back,” the Competition Commission said.
According to the Commission, the alleged conduct constituted price fixing in contravention of section 4(1)(b)(i) of the Competition Act, No. 89 of 1998.
“The conduct is alleged to have started in 2008 and ceased in 2018,” it said.
The Commission said its investigation had found that the respondents charged the same GRI for the routes from Shanghai, Ningbo and Shekou to Durban, from Durban to Hong Kong, and from Qingdao to Durban.
Commissioner Doris Tshepe said the Commission believed that stopping the alleged conduct would help lower the price of imported goods and reduce export costs, improving South Africa’s competitiveness in world markets.
Maersk is cooperating with authorities, said AP Moller Maersk India, Middle East and Africa spokesperson, Adhish Alawani. “We acknowledge that the Competition Commission has referred a complaint against several shipping companies, including Maersk, to the Competition Tribunal. This pertains to a case that was initiated in 2016. We have cooperated with the competition authorities since the case was initiated and will continue to do so. As the matter is ongoing, we are unable to comment further,” Alawani said.
The remaining seven shipping lines had not responded to requests for comment by the time of publication.
