NZ fines Geologistics US$1.87 million for air freight price-fixing

NEW ZEALAND has fined Geologistics International (Bermuda) NZ$2.5 million (US$1.87 million) for its role in fixing air freight forwarding prices.

The company admitted to the High Court in Auckland that it broke New Zealand's Commerce Act by entering into a surcharge agreement with rivals that controlled and maintained prices for freight forwarding between New Zealand and the US, reports Scoop Media NZ.

It said Geologistics is the second US freight forwarding company to reach a settlement with New Zealand anti-trust regulators in connection with an alleged air freight price-fixing cartel that has netted major airlines around the world, after Texas-based freight forwarding firm EGL Inc was fined NZ$1.15 million earlier in December.

"The commission is pleased to have worked constructively with the parties to this anti-competitive behaviour," New Zealand's Commerce Commission General Manager of Enforcement Kate Morrison was quoted as saying in a statement. "Because of the distance from our biggest markets and sources of supply, it is vital that air freight services are subject to competition between freight forwarders."

The report said that Geologistics has already agreed to pay almost US$690,000 to settle price-fixing allegations with US antitrust regulators.

Both Geologistics and EGL Inc will also each have to pay NZ$50,000 to cover the regulator's costs.
(Source:www.schednet.com)