Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Australia goes after cargo shippers, wins first criminal guilty plea from NYK, (Jul 18, 2016)

By Jeffrey May, J.D.

Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) pleaded guilty today to price fixing charges in Australia’s first criminal action under the Competition and Consumer Act. In announcing the guilty plea, the Australia Competition and Consumer Commission (ACCC) said that its investigation into other alleged cartel participants was continuing.

According to ACCC Chairman Rod Sims, the charge against NYK relates to the transportation of vehicles, including cars, trucks, and buses, to Australia between July 2009 and September 2012. NYK could face fines of up to AUD$10 million or three times the total benefits of the offense.

Australia is not alone in pursuing shipping companies for engaging in cartel conduct in the transportation of vehicles. The U.S. Department of Justice also has charged NYK and other shippers and industry executives for their roles in a price fixing conspiracy impacting the United States.

NYK was the third shipping company to plead guilty in the ongoing U.S. antitrust investigation of the international ocean shipping services market. In late 2014, NYK agreed to plead guilty to a one-count felony charge and to pay a $59.4 million criminal fine. It was alleged that NYK’s participation in the conspiracy lasted from approximately February 1997 until about September 2012.

Chilean shipping company Compañía Sud Americana de Vapores S.A. (CSAV) was the first company to be charged in the Justice Department investigation. CSAV agreed to plead guilty and to pay an $8.9 million criminal fine for its involvement in the decade-long conspiracy. Not long thereafter, Kawasaki Kisen Kaisha, Ltd. (K-Line) of Japan pleaded guilty to a price fixing charge and agreed to pay a $67.7 million criminal fine for their involvement in the scheme. The most recent filing in the U.S. investigation was against Norwegian company Wallenius Wilhelmsen Logistics AS (WWL). Just last week, the Justice Department announced that WWL agreed to plead guilty and pay a $98.9 million criminal fine for participating in the conspiracy. Industry executives also have been charged.

The Japan Fair Trade Commission also has fined NYK and other shippers for conspiring to fix freight rates for international ocean shipping services for automobiles. In addition, numerous private actions have been filed against the shipping companies.

Companies: Nippon Yusen Kabushiki Kaisha; Kawasaki Kisen Kaisha, Ltd.; Compañía Sud Americana de Vapores S.A.; Wallenius Wilhelmsen Logistics AS

News: Antitrust