K Line is facing a fine from South Africa’s competition watchdog for rigging bids with rivals for shipping cars.
The local competition commission has recommended a penalty equal to 10% of K Line’s local turnover.
K Line reported revenue of JPY 760.9bn ($6.68bn) in the first nine months of the 2016 financial year.
South African authorities found the Japanese owner was working with MOL, NYK and Wallenius Wilhelmsen Logistics (WWL) on fixing prices for the shipment of Toyota vehicles.
According to the investigation, the companies agreed on the number of vessels they were to operate in this market from at least 2002 to 2013.
NYK and WWL have already agreed to pay penalties of ZAR 103m ($8m) and ZAR 95.6m respectively.
MOL was not fined because it was the first to approach the commission and cooperate, the watchdog said.
"Cartels derail growth"
Tembinkosi Bonakele, South Africa’s competition commissioner, said: “Any cartel by shipping liners in this region results in inflated prices for cargo transportation.
“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.”
The commission added MOL, NYK and WWL will cooperate in the prosecution of K Line.
As TradeWinds reported late last year, K Line is also facing criminal charges in Australia.
Competition authorities are investigating price fixing from car carriers in other regions as well, such as Europe and South America.
Last September, the South African competition commission raided the local offices of six shipping lines, including Maersk Line, Hamburg Sud and Mediterranean Shipping Company (MSC).
