Report: “K” Line found guilty of cartel behavior in South Africa

The Japanese ocean carrier could face a fine of as much as 10 percent of its annual revenues for its alleged involvement in a price-fixing scheme for auto shipping in South Africa, according to multiple media reports.    Japanese ocean carrier Kawasaki Kisen Kaisha, Ltd. (“K” Line) has been found guilty of cartel behavior in South Africa, according to multiple media reports.
   The South African Competition Committee (SACC) has recommended a fine of as much as 10 percent of the company’s annual revenues for its alleged involvement in a price-fixing scheme for auto shipping in South Africa.
   “K” Line reported revenues of 1.24 trillion Japanese yen (U.S. $10.9 billion) in its fiscal year 2015-2016, meaning the imposed fine could be as high as $1 billion, although that seems unlikely given the previous fines handed down in this case.
  The case is part of an ongoing investigation by the SACC into collusive behavior on the part of shipping liners operating in South Africa from 2002 to 2013. The regulatory body in 2015 fined fellow Japanese ocean carrier Nippon Yusen Kaisha (NYK) $8 million and Norwegian firm Wallenius Wilhelmsen Logistics AS (WWL) $7.5 million after both admitted to price fixing, market division and collusive tendering for shipping Toyota vehicles from South Africa to Europe, North Africa and the Caribbean.
   In addition, the commission found “K” Line, NYK, WWL and MOL colluded on the number and frequency of vessel services between South Africa and Europe routes and the freight rates they would charge Toyota South Africa Motors (TSAM) for auto shipments.
   MOL was not fined as it was first to come forward to the commission about the behavior and cooperated fully with its investigation.
   At the time, the SACC said it would continue to investigate the remaining carriers named previously in the suit, including “K” Line, WWL, Chile-based CSAV, Norwegian Höegh Autoliners‚ and Eukor Car Carriers of South Korea.