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Friday, January 31, 2014

Crack down has started on RoRo carriers for alleged unfair practices

It seems that the Japan Fair Trade Commission and the US Federal Maritime Commission have finally acted against carriers alleged to be engaged in unfair practices that have violated antitrust laws.

Personally I am very pleased to see the authorities getting tough. My clients and I have been on the receiving end of these types of practices on the USA to Oceania trade lane where one carrier always tried to force 100% commitments of cargo to them in shipping contracts. This obviously closes out competition and is unfair. My USA based lawyers advised that this practice runs foul of both US and European Union competition law but nonetheless they held their stance.

WW, K Line, Nissan Motor Car Carrier, NYK, Eukor and MOL have all been under scrutiny by regulators.

Wallenius Wilhelmsen(WW) has been fined US$33 million for alleged unfair practices in the Japan to Europe trade lane.


K Line has provisioned for a JPY5.7bn fine from the Japan Fair Trade Commission this year. To put the size of this fine into perspective their forecast profit to March 31 this year is JPY16bn.
Hopefully fairer competition and better rates will result from this crack down on carriers.
All for now,

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