The offices of six cargo shipping companies were raided by the Competition Commission in Durban and Cape Town on Wednesday as part of an investigation into suspected collusive behaviour.
The commission simultaneously removed documents and electronic data from the offices of Hamburg Sud South Africa‚ Maersk South Africa‚ Safmarine‚ Mediterranean Shipping Company‚ Pacific International Line South Africa‚ and CMA CGM.
The commission said it carried out the search-and-seizure operation after receiving information from a member of the public that shipping companies were allegedly engaged in collusive practices to fix cargo shipment rates from Asia to South Africa in contravention of the Competition Act.
It said it has reasonable grounds to suspect that these companies were indeed engaged in collusive practices.
The affected shipping lines transport goods such as frozen foods‚ garments and footwear from Asia to South Africa.
Competition commissioner Tembinkosi Bonakele said such behaviour undermined the competitiveness of the Southern African region in the world markets.
“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping liners in this region results in inflated prices for cargo transportation‚” he said.
He added that cartels of such a nature also increased the costs of trading in the region and rendered the region uncompetitive in the world markets.
“Such cartels have the effect of significantly derailing the economic growth of the region‚” said Bonakele.
– TMG Digital/The Times
Six companies raided after being accused of fixing cargo shipment rates
The offices of six cargo shipping companies were raided by the Competition Commission in Durban and Cape Town on Wednesday as part of an investigation into suspected collusive behaviour.
The commission simultaneously removed documents and electronic data from the offices of Hamburg Sud South Africa‚ Maersk South Africa‚ Safmarine‚ Mediterranean Shipping Company‚ Pacific International Line South Africa‚ and CMA CGM.
The commission said it carried out the search-and-seizure operation after receiving information from a member of the public that shipping companies were allegedly engaged in collusive practices to fix cargo shipment rates from Asia to South Africa in contravention of the Competition Act.
It said it has reasonable grounds to suspect that these companies were indeed engaged in collusive practices.
The affected shipping lines transport goods such as frozen foods‚ garments and footwear from Asia to South Africa.
Competition commissioner Tembinkosi Bonakele said such behaviour undermined the competitiveness of the Southern African region in the world markets.
“South Africa is a strategic hub for the trade of goods in and out of the Southern African region. Any cartel by shipping liners in this region results in inflated prices for cargo transportation‚” he said.
He added that cartels of such a nature also increased the costs of trading in the region and rendered the region uncompetitive in the world markets.
“Such cartels have the effect of significantly derailing the economic growth of the region‚” said Bonakele.
– TMG Digital/The Times
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