The Commerce Commission has issued warnings to eight international freight forwarding companies alleged to have entered into cartel agreements.
The ComCom says in its view it’s likely the companies entered into cartel agreements with Mondiale Freight Services Limited or Oceanbridge Shipping Limited, and in some cases with both, to not compete for customers.
In June this year, the High Court imposed penalties totalling over $9.7 million to Mondiale and Oceanbridge which were found to have engaged in longstanding cartel agreements with their competitors.
The warnings conclude the ComCom’s investigation which began in 2018 into allegations of anti-competitive conduct in New Zealand’s international freight forwarding industry.
The companies who received warnings are 360 Logistics Group Limited, Aqua Air Freight Services Limited, C. H. Robinson Worldwide (NZ) Limited, Go Logistics Limited, Kerry Logistics (Oceania) Limited, Mainstream Global Limited, Ryders Customs and Forwarding Limited, and Stellar International Limited.
Mondiale and Oceanbridge were both suppliers to and competitors of the warned companies.
The ComCom considered that the cartel agreements had the effect of removing competition, making it possible that customers were charged more for retail freight forwarding services than they would have if these companies had actively competed for those customers’ business.
“The warnings are not legal findings that a breach of the Commerce Act has occurred, but reflect the Commission’s view of the conduct,” it says.
“The warnings make it clear to the businesses that their directors and staff should be aware that entering into these kinds of anti-competitive agreements is likely to be cartel conduct, which may breach the Commerce Act. They also suggest changes in each recipient’s behaviour to comply with the law.
“The international freight forwarding industry is an important sector of the New Zealand economy. We will continue to focus on identifying potential cartel conduct in global supply chains,” the ComCom says.
