The Competition Commission of South Africa has referred a case of alleged price fixing, market division and collusive tendering against Kawasaki Kisen Kaisha to the Competition Tribunal for prosecution.
The commission alleged that the Japanese company, operating in South Africa, along with Mitsui OSK Lines (MOL), Nippon Yusen Kabushiki Kaisha (NYK) and Wallenius Wilhelmsen Logistics (WWL), had fixed prices, divided markets and tendered collusively in respect of shipment of Toyota vehicles from South Africa to Europe, North Africa, the Mediterranean coast and the Caribbean Islands through Europe, West Africa, East Africa and the Red Sea.
Between 2002 to 2013, the companies allegedly colluded on a tender issued by Toyota South Africa Motors (TSAM) to export vehicles.
The companies agreed on the number of vessels that they were to operate on the South Africa to Europe routes at agreed intervals or frequencies, while agreeing on the freight rates that they were to charge TSAM for the shipment of vehicles.
In 2015, NYK and WWL admitted to colluding on this tender and settled with the commission. NYK, also a Japanese company, paid an administrative penalty of R103-million, while Norwegian company WWL paid an administrative penalty of R95-million.
MOL, another Japanese company, was not fined as it was the first to approach the commission.
“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.
“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 Competition Commission commissioner Tembinkosi Bonakele.