Japan's K Line has been fined ZAR 99m ($6.87m) for car carrier price fixing in South Africa.
The country's Competition Commission said it had reached a settlement agreement with the owner relating to collusion involving it and MOL, NYK and Wallenius Wilhelmsen Logistics (WWL).
The probe began in 2012 and found that the companies fixed prices, divided markets and tendered collusively for shipments of Toyota vehicles from South Africa to Europe, North Africa and the Caribbean Islands via Europe, West Africa, East Africa and the Red Sea.
Competition Commissioner Tembinkosi Bonakele noted that the cartel activities of shipping lines caused inflated prices.
He added that cartels and collusive conduct increased the costs of trading and rendered the region uncompetitive in world markets, significantly derailing economic growth.
Although the Commission charged K Line with 15 separate instances of contraventions of the Competition Act, K Line admitted to eight.
The investigation found that from at least 2002 to 2013 K Line, MOL, NYK and WWL colluded on a tender issued by Toyota South Africa Motors.
They agreed the number of vessels they were to operate on the South Africa to Europe routes at agreed intervals or frequencies, the Commission said.
It found they also agreed on freight rates.
Case closed
In 2015, NYK and WWL admitted to colluding on the tender and settled with the Commission, paying ZAR 104m and ZAR 96m respectively.
MOL was not fined as it was first to approach the Commission and cooperated.
Australian action
In April, K Line pleaded guilty to criminal cartel conduct in Australia.
The car carrier company faces sentencing in a federal court.
The next scheduled hearing for K Line is on 15 and 16 November.
In February, European Union (EU) competition regulators announced a EUR 395m ($487m) fine against four car carrier companies for violating the bloc’s competition rules.
The fine applied to CSAV, K Line and NYK, as well as Scandinavian WWL-EUKOR.
Chile's National Economic Prosecutor’s office (FNE) has filed charges in the country’s Free Trade Defence Tribunal (TDLC) against CSAV, Compania Chilena de Navegacion Interoceanica (CCNI), Eukor Car Carriers, K Line, MOL and NYK.
Eukor denied being a part of any collusion in this case.
NYK and K Line were also fined in the US for violating shipping laws.
