UPS and FedEx deny allegation of collusion

The Justice Department began a preliminary probe in November into possible improper cooperation by delivery giants United Parcel Service Inc (UPS) and FedEx Corp aimed at freezing out third-party shipping negotiators and consultants, reported Dow Jones Newswires.

Both companies have denied the allegation, which is outlined in a pending lawsuit that was filed against them over the summer by AFMS, a third-party consulting firm based in Portland, Oregan.

Among other services, shipping and supply-chain consulting firms attempt to save money for their clients by negotiating lower shipping rates.

UPS spokeswoman Susan Rosenberg confirmed that the Justice Department's anti-trust division began a preliminary investigation regarding the issue in November and has asked UPS to voluntarily comply with some requests for information.

"We're going to certainly cooperate with the DOJ," Rosenberg said.

FedEx spokesman Maury Lane said his company has been notified by the Justice Department of the preliminary probe and will cooperate.

Lane said FedEx also "is aware that [the attorney for AFMS] has asked for an investigation." Maxwell Blecher, a lawyer representing AFMS in the lawsuit, denied the contention in a written statement.

Both Lane and Rosenberg called the allegations groundless.

Rosenberg said UPS will continue "to defend our right to decline to deal with third-party shipping negotiators" and instead deal directly with its own customers.

She stressed that UPS arrived at its business practices independently of FedEx. "We compete [against FedEx] aggressively on everything," Rosenberg said.

A Justice Department spokeswoman declined to comment.

Blecher said a Justice Department lawyer contacted him "months after we filed" the lawsuit, advising him that an investigation had begun and asking to speak with an AFMS executive.
(Source:www.cargonewsasia.com)