On May 17, 2011, the European Union antitrust officials conducted several unannounced raids on the European offices of a few Asian carriers and European ocean shipping lines. This was a probe to address suspected price fixing , as reported by the lines raided. According to an article on the JOC Sailings website, the European Union raided companies including Maersk Line, CMA CGM, and Hapag-Lloyd.
Other companies reportedly included in the raid were Neptune Orient Lines, OOCL, Evergreen Marine and Hanjin Shipping. The European Commission reports that they have "reason to believe the companies concerned may have violated the antitrust rules that prohibit cartels and restrictive practices and/or abuse of a dominant market position."
Antitrust rules in place since 2008 have taken away large carrier lines' former exemption from antitrust enforcement.
Antitrust laws prohibit anti-competitive behavior, punishing those who participate in unfair business practices or monopoly-like behaviors. Antitrust laws encourage competition in the sector and make it illegal to use tactics that are detrimental to other businesses or consumers. The antitrust laws cover many areas of unfair practice and keep companies from violating accepted standards of ethical behavior.
Companies involved in the raid and investigation seem to be compliant and open to fully disclosing information of interest. "NOL understands that the intent of the inspection is to identify the existence of any evidence of infringement of anti-competition rules relating to the liner shipping industry." Stanley Shen, spokesperson for OOCL said "We can confirm that the EC raided our office in the UK's Levington. It's a very general raid and not carrier-specific, it seems." Stanley Shen also stated that he believes that they are in "compliance with the anti-competition regulations and is cooperating fully with the European Union."
A spokesperson for Evergreen also said that "Evergreen will continue to fully cooperate with the EC agents in their efforts." Hanjin Shipping reported that their Hamburg office was inspected by EU officials and said that they would also comply and fully cooperate with the investigation.
Many <a href="http://www.shiplilly.com/"title="Ocean Shipping">ocean shipping</a> lines have prospered because of the antitrust laws and are happy to comply with EU officials. Everyone seems to understand that the laws are in place to prevent eventual market failure and unfair advantages in the marketplace. The term "antitrust" was originally used to combat business trusts, now more commonly termed as cartels. In this case, the activity being scrutinized by the EU under the antitrust agreement was price fixing. There has been no official report released at this time regarding the findings of the EU, but ocean freight shippers seem to be more than willing to comply.
About the Author: Nelson Cabrera is the Business Development Manager of Lilly & Associates International, a transportaion and logistics company specializing in ocean freight and ocean shipping services. For more information, please visit http://www.shiplilly.com/.
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