Shipping giants accused of price fixing as CompCom takes case to tribunal
Eight cargo shipping companies are in hot water over alleged price fixing.
The Competition Commission has referred a complaint against them to the Competition Tribunal.
The companies being probed are Maersk South Africa, Mediterranean Shipping Company, CMA CGM, Pacific International Lines, Mitsui O.S.K Lines, Evergreen Agency, COSCO Shipping Lines, and K Line Shipping South Africa.
The Competition Commission believes that the firms, all global container shipping liners, engaged in fixing rates, known as the General Rate Increase (GRI).
ALSO READ: Transnet to spend billions on Durban port infrastructure
The rate is charged to customers shipping general cargo between South Africa, Asia and West Africa.
The commission says that its investigation found that the ship companies charged the same GRI for routes from Shanghai, Ningbo and Shekou to Durban, from Durban to Hong Kong, and from Qingdao to Durban.
It says dismantling what it believes to be a cartel will lower the price of goods imported into South Africa and reduce export costs -- helping local products compete more effectively on the global market.
Find us on social media
Follow the ECR Newswatch WhatsApp channel here
MORE ON ECR:
