Australia fines NYK $25m for cartel behavior

The Australian Federal Court has fined the ocean carrier for price fixing between 2009 and 2012, imposing the second highest fine in the history of the Australian Competition and Consumer Commission, reports TradeWinds.    The Australian Federal Court has ordered ocean carrier Nippon Yusen Kaisha (NYK) to pay a $25 million fine due to cartel behavior, according to a report from shipping industry news outlet TradeWinds.
   The ocean carrier engaged in the transportation of vehicles to Australia between 2009 and 2012. Furthermore, the court found that a cartel operated from at least February 1997 and affected vehicles brought into the country by NYK and other shipping lines, reported TradeWinds.
   The $25 million fine is the second largest sum imposed by the Australian Competition and Consumer Commission (ACCC), but it could have been double had NYK had not pleaded guilty last year. The fine was calculated on the basis of 10 percent of NYK’s annual turnover in connection with Australia.
   “The Australian community relies heavily on imported vehicles, so a long-standing cartel in relation to the transportation of those vehicles to Australia was of a significant concern. The sentence imposed on NYK by the Federal Court today sends a strong warning to the industry and the business community at large,” said Rod Sims, chairman of ACCC. “The CDPP and ACCC can and will criminally prosecute cartel conduct.”
   Fellow Japanese carrier Kawasaki Kisen Kaisha (“K” Line) was also charged with cartel behavior by the ACCC in 2016 and is facing similar fines in South Africa, while the European Commission has cracked down on price fixing schemes with new rules established last summer.