Sharechat Logo

Commission settles with second freight forwarding company

Wednesday 22nd December 2010

Text too small?

The Commerce Commission is signalling further proceedings against freight forwarders after a second settlement resulted in a $2.5 million penalty against a company.

On December 16, EGL Inc was ordered to pay a penalty of $1.15 million and costs of $50,000 for anti-competitive conduct relating to a security surcharge.

The commission today said the High Court at Auckland had endorsed a settlement with Geologistics International (Bermuda) Ltd, imposing a penalty of $2.5 million and ordering payment of the commission's litigation costs of $50,000.

Geologistics was found to have contravened the Commerce Act by entering into and giving effect to the Air AMS surcharge agreement together with other freight forwarders. The surcharge related to customs clearance in the United States for goods air freighted between New Zealand and the US.

The commission began an investigation in 2007 into alleged collusion by a number of multinational companies in the international freight forwarding market. This followed a confidential application for leniency by one of the companies involved in the conduct.

The judgment issued today said there had been hard core cartel behaviour.

"The cost of airfreight is very important to New Zealand exporters and importers. Because of the distance from our biggest markets and sources of supply, it is vital that air freight services are subject to competition between freight forwarders," said Kate Morrison, the commission enforcement general manager.

The commission is hopeful of settling proceedings with further parties in the near future.

 

NZPA



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

CHATHAM ADVISES EXTENDED CLOSING DATE OF 9 AUGUST FOR SPP
Acceleration of expressway will be transformative for Northland economy says EMA
The Warehouse Group - Proposed Scheme of Arrangement
The Warehouse Group - Proposed Scheme of Arrangement
Winton announces timing of its Annual Results
Fletcher Building Announces Director Appointment
Meridian issues new demand response exercise notice to NZAS
CRP - Chatham Closes Private Placement of Shares
General Finance - Olympic Term Deposit Promotion featuring a Special Bonus of 0.1%
July 22nd Morning Report