Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Third Japanese shipping executive caught in U.S. cartel probe, (Jan 20, 2015)
Organizations Mentioned:Compania Sud Americana de Vapores S.A. | Kawasaki Kisen Kaisha, Ltd. | Nippon Yusen Kabushiki Kaisha | U.S. Department of Justice
By Jeffrey May, J.D.
A former manager in the car carrier division of Nippon Yusen Kabushiki Kaisha, Ltd. (NYK), a Japanese transportation company, is the third executive to agree to plead guilty for his role in a conspiracy to fix prices, allocate customers, and rig bids of “international ocean shipping services for roll-on, roll-off cargo.” A one-count felony charge was filed in the federal district court in Baltimore against Susumu Tanaka on January 16 (U.S. v. Tanaka, Criminal No. 1:15-cr-00022-GLR).
The charge against Tanaka follows NYK's agreement to plead guilty and to pay a $59.4 million criminal fine for its involvement in the conspiracy. That charge was filed against the company in late December.
According to the latest filing in the investigation, Tanaka participated in the conspiracy from approximately April 2004 until about September 2012. NYK has admitted to participating in the conspiracy between February 1997 and September 2012. NYK has been cooperating with the Justice Department’s investigation since it commenced in September 2012.
Roll-on, roll-off cargo is 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.
In addition to Tanaka, Japanese shipping company Kawasaki Kisen Kaisha Ltd. (K-Line) and two K-Line employees are alleged to have participated in the conspiracy. Chilean shipping company Compania Sud Americana de Vapores S.A. was the first company charged in the conspiracy in early 2014.
NYK and K-Line also were fined last year by the Japan Fair Trade Commission (JFTC) for conspiring to fix freight rates for international ocean shipping services for automobiles. In addition to the JFTC and U.S. Department of Justice Antitrust Division charges, the companies have been named in a number of private suits seeking damages.
Companies: Kawasaki Kisen Kaisha, Ltd.; Nippon Yusen Kabushiki Kaisha; Compania Sud Americana de Vapores S.A.
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