Top forwarders accused of price-fixing

The New Zealand Commerce Commission has filed proceedings in the High Court at Auckland against a number of international freight forwarding companies on charges of colluding on surcharges and fees for air freight forwarding services to New Zealand, reported Dow Jones Newswires.

The regulator said in a statement that proceedings have been filed against a number of Deutsche Bahn Group companies, BAX Group (now also owned by Deutsche Bahn Group), Kuehne & Nagel International, Panalpina World Transport (Holdings), EGL Inc (part of CEVA Logistics) and Geologistics International (Bermuda) Ltd.

The commission added that it has reached respective agreements with EGL and Geologistics to resolve the proceedings and details of these settlements would be announced once they are endorsed by the court.

"In both instances the local New Zealand subsidiaries were not implicated," it added.

The commission said the anti-competitive conduct related to alleged agreements about the implementation and application of certain surcharges and fees on air freight forwarding services both to and from New Zealand.

"The agreements are alleged to have had the effect or the likely effect of controlling or maintaining the price of air freight forwarding services in breach of the Commerce Act," it said.

Investigations began in 2007 but the commission alleged that some of the agreements had been in place since 2001.

"Cartel investigations into this conduct are also continuing in Europe and the United States," it added.

Commerce Commission's general manager of enforcement Kate Morrison said: "Agreements between competitors to fix, control or maintain prices distort the normal forces of competition and keep prices artificially high."

"This not only harms downstream businesses but also consumers who may pay higher prices as a result," she said.

Kuehne & Nagel, Panalpina, EGL and Geologistics weren't available to comment. The local branch of DB Schneker, the brand under which Deutsche Bahn Group offers freight forwarding services, refused to comment on the matter.
(Source:www.cargonewsasia.com)