Another car shipping firm accused of fixing prices

Norwegian company allegedly colluded with Japanese concern

A SECOND international car shipping company has been referred to the Competition Tribunal for prosecution related to collusive tendering, price fixing and market division in the transportation of motor vehicles, equipment and machinery by sea to and from South Africa.

Norwegian-based Hoegh Autoliners AS has been accused of colluding with Japanese car shipping company Mitsui O.S.K Lines (MOL) and is facing seven charges.

Sipho Ngwema, the head of communications at the Competition Commission, said yesterday that the charges stemmed from a probe into widespread anti-competitive conduct in this market.

Ngwema said from about 2009 MOL and Hoegh engaged in prohibited practices by agreeing and/or engaging in concerted practices as competitors to fix prices, divide markets and tender collusively.

MOL previously approached the commission in terms of its corporate leniency policy and was subsequently granted conditional leniency for its involvement in the cartel conduct in exchange for information and its full co-operation.

Ngwema said that in referring the matter against Hoegh to the tribunal for adjudication, the commission was seeking an order declaring that the company was liable for the payment of an administrative penalty equal to 10 percent of its annual turnover on each of the charges.

Three of the charges involve alleged collusive activities from about 1997 involving a tender issued by Auto Alliance Thailand to transport Mazda motor vehicles from Thailand to South Africa; collusive activities from around 2004 involving tenders issued by Toyota South Africa to transport vehicles from South Africa to Europe and North Africa; and collusive activities from around 2008 involving tenders issued by Daimler AG to transport Daimler motor vehicles from South Africa to North America and vice versa.

The four remaining charges relate to collusive activities

from around 2009 involving a tender issued by the Ford Motor Company to transport vehicles to Europe; collusive activities from around 2010 involving a tender issued by Renault-Nissan Purchasing Organisation to transport Nissan motor vehicles from India to South Africa; collusive activities from around 2010 involving a tender issued by Maruti Suzuki to transport Suzuki vehicles from India to South Africa; and collusive activities from around 2010 involving tenders issued by Japanese manufacturers such as Mazda, CAT, Hitachi and Komatsu to transport motor vehicles and construction machinery from Thailand and Japan to South Africa.

In a separate but related matter, the commission earlier this year referred 15 charges to the tribunal against K Line for prosecution for price fixing, market division and collusive tendering.

Japanese company Nippon Yusen Kabushiki Kaisha (NYK) and Norwegian company Wallenius Wilhelmsen Logistics AS (WWL), who were listed as respondents in the K Line case, made admissions and concluded settlement agreements with the commission.

NYK paid a fine of R103.98 million and WWL a R95.69m penalty.

Mitsui O.S.K Lines (MOL) was not fined because it was the first to approach the commission and was granted conditional corporate immunity from prosecution.

However, the commission has lodged a complaint with the tribunal against Japanese company Kawasaki Kisen Kaisha, one of four companies investigated by the commission and found to have been involved in a cartel transporting Toyota vehicles from South Africa to Europe, North America and Caribbean Islands via Europe, West Africa, East Africa and Red Sea (Latin America) by sea.