Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Three former Japanese shipping executives indicted in U.S. cartel probe, (Oct 6, 2015)

By Jeffrey May, J.D.

The total number of executives charged in the Department of Justice Antitrust Division’s ongoing probe of the ocean shipping industry has just increased to seven. After accepting plea deals from four shipping industry executives over the past year, three former ocean freight executives were indicted today for allegedly participating in a long-running conspiracy to allocate customers and routes, rig bids, and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo. Yoshiyuki Aoki, Masahiro Kato, and Shunichi Kusunose, all of Japan, were named in an indictment handed down by a federal grand jury in Baltimore (U.S. v. Aoki, Criminal No. 1:15-cr-00524-GLR).

Two of the individuals—Kato and Kusunose—had been executives at Japanese shipping company Kawasaki Kisen Kaisha (K-Line). Aoki was formerly of shipper Nippon Yusen Kabushiki Kaisha (NYK). Aoki was charged with participating in the conspiracy from about 2001 until at least September 2012; Kato was charged with participating from about April 2002 until at least September 2012; and Kusunose was charged with participating from about April 2004 until at least 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.

Both K-Line and NYK have already pleaded guilty for their involvement in the conspiracy. K-Line was sentenced to pay a $67.7 million criminal fine. NYK agreed to pay a $59.4 million criminal fine. Of the four individuals who have pleaded guilty so far, one was an NYK employee and the other three were employees of K-Line.

“We previously charged NYK and K-Line for their role in this long-running conspiracy,” said William Baer, Assistant Attorney General in charge of the Antitrust Division, in announcing the indictment. “Today we are continuing our effort to ensure that the executives at those companies who orchestrated the ocean shipping conspiracy face the consequences as well.”

The Department of Justice Antitrust Division announced its first charge in the ocean shipping probe in February 2014. The Japan Fair Trade Commission also has fined K-Line, 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: Companies: Kawasaki Kisen Kaisha, Ltd.; Nippon Yusen Kabushiki Kaisha

News: Antitrust AntitrustDivisionNews