SOUTH KOREA HANDS OUT FINES TO 23 CARRIERS FOR ILLEGAL PRICE FIXING
On 18 January, the South Korea Fair Trade Commission (KFTC) fined 23 ocean carriers a total of USD 81m for illegal collaboration on price fixing on the South Korea to South-east Asia lane between 2003 and 2018. Most of the major liner operators and several regional carriers were among those fined, including HMM, SM Line, Korea Marine Transport (KMTC Line), Pan Ocean, Sinokor, Maersk, Evergreen, Yang Ming, Wan Hai, SITC and Cosco.
Investigations began in July 2018, after timber importers complained to the KFTC that liner operators had simultaneously increased freight rates on the South Korea to South-East Asia route. While the liner operators claim South Korea’s Shipping Act permits collective actions on freight rates, KFTC Chairperson Joh Sung-Wook said their acts were “illegal” as they failed to meet certain criteria permissible under the law: She noted that liner operators must report any collective actions to the minister for oceans and fisheries and give 30 days’ notice of any change to freight rates or services to shippers.
Source: ShippingWatch, The Loadstar