Competition Commission raids cargo shipping companies

The Competition Commission on Wednesday conducted a search and seizure operation at the premises of six cargo shipping companies in the Western Cape and KwaZulu-Natal.
 
The commission said it suspects that Hamburg Sud South Africa, Maersk South Africa, Safmarine, Mediterranean Shipping Company, Pacific International Line South Africa and CMA CGM Shipping Agencies South Africa have engaged in collusive practices to fix the incremental rates for the shipment of cargo from Asia to South Africa in contravention of the Competition Act.
 
The search and seizure operation was conducted as part of an ongoing investigation that was initiated by the commission based on information from a member of the public.

During the search, the commission seized documents and electronic data, which would be analysed, together with other information gathered, to determine whether these companies have contravened the Act.
 
The companies under investigation are involved in the transportation of cargo for import and export purposes across the globe, including South Africa. They use large metal containers as packaging crates and in-transit warehouses to store and transport general cargo such as frozen foods, garments and footwear.

The customers of these companies are mainly clearing and freight forward agents.  
 
“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 Commissioner Tembinkosi Bonakele.

MSC Mediterranean Shipping Company confirmed that its South African premises were among those searched. It commented that the company was assisting the relevant authorities in their investigations.