Anti-graft agency raids six cargo companies
Price-gouging cartel suspected
South Africa’s Competition Commission said it was conducting a search-and-seizure operation at the premises of Hamburg Sud South Africa, Maersk South Africa, Safmarine, Mediterranean Shipping Company, Pacific International Line South Africa and CMA CGM Shipping Agencies South Africa.
The commission said it had reasonable grounds to suspect that the companies had engaged in collusive practices to, among other things, fix the incremental rates for the shipment of cargo from Asia to South Africa in contravention of the Competition Act.
It said the search-and-seizure operation was conducted as part of an ongoing investigation that it initiated based on information from a member of the public.
Commission investigators seized documents and electronic data, which will be analysed together with other information gathered to determine whether these companies have contravened the Competition Act.
Maersk spokesman Michael Christian Storgaard confirmed the raid and said the company had offered its cooperation with the commission.
“We can confirm that the South African Competition Commission is carrying out an unannounced inspection in our Maersk Line and Safmarine offices in South Africa.
“The fact that such inspections are carried out does not mean that a company has engaged in anti-competitive behaviour, nor does it prejudge the outcome of the investigation itself. Unannounced inspections are often a preliminary step in investigations into suspected infringements of competition rules. As the investigation is ongoing, we cannot share further details at this point,” said Storgaard.
Attempts to get comment from the other companies were unsuccessful while Allan Botha, finance general manager at Pacific International Line South Africa, declined to comment.
The companies under investigation were involved in the transportation of cargo for import and export purposes across the globe, including South Africa.
“They use large metal containers as packaging crates and in-transit warehouses to store and transport general cargo such as frozen foods, garments and footwear. The customers of these companies are mainly clearing and freight-forwarding agents,” the commission said.
It said it had obtained warrants authorising it to search the premises at the Western Cape High Court and Pietermaritzburg High Court as it suspected collusion among the companies.
The operation was conducted with due regard to the rights of all the affected persons.
“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping lines in this region results in inflated prices for cargo transportation. Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region,” said the commissioner of the Competition Commission, Tembinkosi Bonakele.
The operation was conducted with due regard to the rights of all the affected persons, Bonakele said.
The commission said it had reasonable grounds to suspect that the companies had engaged in collusive practices to, among other things, fix the incremental rates for the shipment of cargo from Asia to South Africa in contravention of the Competition Act.
It said the search-and-seizure operation was conducted as part of an ongoing investigation that it initiated based on information from a member of the public.
Commission investigators seized documents and electronic data, which will be analysed together with other information gathered to determine whether these companies have contravened the Competition Act.
Maersk spokesman Michael Christian Storgaard confirmed the raid and said the company had offered its cooperation with the commission.
“We can confirm that the South African Competition Commission is carrying out an unannounced inspection in our Maersk Line and Safmarine offices in South Africa.
“The fact that such inspections are carried out does not mean that a company has engaged in anti-competitive behaviour, nor does it prejudge the outcome of the investigation itself. Unannounced inspections are often a preliminary step in investigations into suspected infringements of competition rules. As the investigation is ongoing, we cannot share further details at this point,” said Storgaard.
Attempts to get comment from the other companies were unsuccessful while Allan Botha, finance general manager at Pacific International Line South Africa, declined to comment.
The companies under investigation were involved in the transportation of cargo for import and export purposes across the globe, including South Africa.
“They use large metal containers as packaging crates and in-transit warehouses to store and transport general cargo such as frozen foods, garments and footwear. The customers of these companies are mainly clearing and freight-forwarding agents,” the commission said.
It said it had obtained warrants authorising it to search the premises at the Western Cape High Court and Pietermaritzburg High Court as it suspected collusion among the companies.
The operation was conducted with due regard to the rights of all the affected persons.
“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping lines in this region results in inflated prices for cargo transportation. Cartels of this nature increase the costs of trading in the region and render the region uncompetitive in the world markets. Such cartels have the effect of significantly derailing the economic growth of the region,” said the commissioner of the Competition Commission, Tembinkosi Bonakele.
The operation was conducted with due regard to the rights of all the affected persons, Bonakele said.
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