Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Another K-Line employee charged in U.S. shipping industry probe, (Jan 23, 2015)

By Jeffrey May, J.D.

A federal antitrust investigation of the international roll-on, roll-off ocean shipping industry has netted another employee of Japanese transportation company Kawasaki Kisen Kaisha Ltd. (K-Line). Toru Otoda, who served as a general manager in K-Line's car carrier division, has been charged with participating in a conspiracy to fix prices, allocate customers and routes, and rig bids of international ocean shipping services for roll-on, roll-off cargo. Yesterday, a one-count information was filed in the federal district court in Baltimore (U.S. v. Otoda, Criminal No. 1:15-cr-00034-GLR).

The government describes roll-on, roll-off cargo as non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel. Examples of this type of cargo include new and used cars and trucks and construction and agricultural equipment.

K-Line pleaded guilty to a similar charge and was sentenced in November 2014 to pay a $67.7 million criminal fine. Two other K-Line employees also have been charged. Late last year, Hiroshige Tanioka, a manager in K-Line’s car carrier division, and Takashi Yamaguchi, a general manager and executive officer in the same division, agreed to plead guilty for their participation in the cartel.

K-Line admitted to participating in the conspiracy from as early as February 1997 until September 2012. According to the latest charge against Otoda, the defendant participated in the conspiracy for less than two years, from about November 2010 until September 2012.

In addition, Chilean shipping company Compania Sud Americana de Vapores S.A., Japanese shipping company Nippon Yusen Kabushiki Kaisha, Ltd. (NYK), and NYK executive Susumu Tanaka have agreed to settle similar charges.

Companies: Kawasaki Kisen Kaisha, Ltd.; Nippon Yusen Kabushiki Kaisha; Compania Sud Americana de Vapores S.A.

News: Antitrust AntitrustDivisionNews