U.S. Justice Department, EU investigating freight forwarders

U.S. Justice Department, EU investigating freight forwarders Antitrust investigators descended on the offices of several freight forwarders on Wednesday in the United States and Europe.
   Gina Talamona, a spokesman for the U.S. Justice Department, said it was coordinating with European Union and foreign competition authorities in an investigation into possible “anticompetitive practices in the international freight forwarding industry.”
   But Talamona would not identify which companies were being investigated, whether those other antitrust authorities were all based in Europe, or what modes of transportation were involved.
   Swiss forwarder Kuehne + Nagel said, “various competition authorities have carried out an unannounced inspection at a number of international freight forwarding companies” including Kuehne + Nagel offices in Switzerland, United States and the United Kingdom.
   “The investigation relates to alleged anticompetitive activities in the area of international freight forwarding,” Kuehne + Nagel said in a statement, adding that it “sees no reason to suspect any such violations and considers the inspection excessive.”
   It added that it “views any form of competition violation very seriously and ensures full cooperation with all involved authorities in this matter.”
   Ray Waters, a spokesman for Eagle Global Logistics said investigators visited his company’s offices in London and Houston. He said the FBI took hard drives and documents from the Houston office.
   Subpoenas indicated the investigation was into “ratemaking and surcharge activities.”
   But he said he did not know if the investigators were seeking information on surcharges that forwarders pass along from carriers for things like fuel prices or that are imposed by forwarders themselves, for example for customs entry charges.
   “We are operating in a vacuum,” Waters said, but added that EGL has done nothing illegal.
   Swiss forwarder Panalpina said the Swiss Federal Competition Commission (Weko) conducted a search of its premises in Basel. A similar investigation by U.S. antitrust authorities was conducted in the company’s headquarters in Redwood City, Calif.
   Panalpina said the Weko's investigation is aimed at the Association of Swiss Forwarders and several forwarding companies, among them Panalpina.
   Alan R. Geraldi, senior vice president and general counsel at Panalpina, said he believed authorities were looking for documents as part of an investigation of airline fuel surcharges by the EU Commission and U.S. authorities.
   Expeditors said in a statement Wednesday evening that the Justice Department ordered it “to produce certain information and records relating to an investigation of air cargo freight forwarders. Expeditors intends to work with the DOJ on their ongoing efforts to investigate these matters.”