SA commission denounces shipping cartels

By GIFT N DOLWANE
JOHANNESBURG, (CAJ News) – SOUTH Africa’s Competition Commission has referred car carrier company, Kawasaki Kisen Kaisha, for prosecution to the Tribunal for allegedly colluding on a tender for transportation of Toyota vehicles.
The Japanese company operating in South Africa is accused of price fixing, market division and collusive tendering involving the transportation of the vehicles from South Africa to Europe, North Africa (Mediterranean Coast) and the Caribbean Islands via Europe, West Africa, East Africa and Red Sea (Latin America) by sea.
This follows the investigation by the commission which found that K-Line, Mitsui O.S.K Lines, Nippon Yusen Kabushiki Kaisha and Wallenius Wilhelmsen Logistics allegedly fixed prices, divided
markets and tendered collusively in respect of shipment.
The commission’s investigation found that from at least 2002 to 2013.
Commissioner of the Competition Commission, Tembinkosi Bonakele, said South Africa was 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.
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.”
Comment could not be obtained from Kawasaki Kisen Kaisha as the matter is sub judice.
CAJ News

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