South Africa’s Competition Commission raids six container shipping firms

The commission said it has “reasonable grounds” to suspect the carriers engaged in collusive practices to fix incremental cargo rates from Asia to South Africa.    South Africa’s Competition Commission (SACC) said Wednesday it conducted a search and seizure operation at the premises of six cargo shipping companies on allegations they may have engaged in collusive practices to fix incremental cargo rates from Asia to South Africa.
   The commission raided local operations of Danish carrier Maersk Line, along with its subsidiary Safmarine, Swiss-based Mediterranean Shipping Company, CMA CGM of France, Pacific International Line of Singapore, and Hamburg Sud of Germany.
   The companies operate in the Kwazulu-Natal province where Durban, the largest container port in South Africa, is located, as well as the Western Cape province, where Cape Town, the second largest container port in South Africa, is located.
   The commission said raids on shipping company offices were being conducted as part of an ongoing investigation, which was initiated based on information from a member of the public.
   In addition, the commission said that during the search, it would be seizing documents and electronic data, which would be analyzed with other data gathered to determine if these companies did contravene the Competition Act.
   “South Africa is 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,” said Tembinkosi Bonakele, the Commissioner of the Competition Commission. “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.”
    Michael Storgaard, senior press officer for Maersk Line, confirmed the unannounced inspection on the offices of Maersk Line and sister company Safmarine in South Africa.
   “The purpose of this inspection is to ascertain whether there is evidence of any infringement of the South African Competition Act, 89 of 1998 in relation to alleged price fixing. We are cooperating fully with the SACC, ” he said.
   “The fact that such inspections are carried out does not mean that a company has engaged in anti-competitive behavior nor does it prejudge the outcome of the investigation itself. Unannounced inspections are often a preliminary step in investigations into suspected infringements of competition rules,” he added. “As the investigation is ongoing, we cannot share further details at this point.”
   CMA CGM said it was aware of the inspections and “intends to fully cooperate with all relevant authorities.”