AFRICA AND SOUTH KOREA INVESTIGATE ON ALLEGED PRICE FIXING BY SHIPPING LINES
Over the last week, the South Korea Fair Trade Commission (KFTC) and the COMESA Competition Commission (CCC, representing 21 African member states) started investigating ocean carriers for allegedly coordinating in raising freight charges.
KFTC is understood to have sent review reports to the liner operators concerned, saying it is looking into allegations that they fixed freight rates on South Korea-China and South Korea-Japan lanes for 17 years. Earlier this year, the Commission imposed an $81 million collective fine on a number of carriers for fixing South Korea - South-East Asia freight rates. The shipping companies are said to have failed to report collusion and unilateral acts of raising freight rates to the minister of oceans and fisheries, as required by Korea’s Shipping Act.
In Africa, the CCC said that three carriers – Maersk, CMA CGM and German-controlled United Africa Feeder Line – have been accused of price signalling, the liners issuing price announcements which could be construed as a form of coordinated behaviour. The announcement comes at a time where the continent of Africa has seen ship calls drop as liners have prioritised more profitable trade lanes to Europe and North America.
Source: The Loadstar, Splash247