[240317.EN.BIZ] FBI Seeks Documents From Hong Kong's OOCL, Maersk, MSC, Evergreen

THE US Department of Justice (DoJ) has ordered top executives from several container shipping lines to testify in an antitrust investigation, Reuters reports.

A happy Hong Kong Shippers' Council chairman Willy Lin said: "We look forward to hearing their result."

Among those subpoenaed at a San Francisco meeting of the International Council of Containership Operators, known as the Box Club, were Denmark's Maersk Line, Geneva's Mediterranean Shipping Co (MSC), Germany's Hapag-Lloyd, Taiwan's Evergreen and Hong Kong's Orient Overseas Container Line (OOCL).

None offered details on what exactly was being sought by the authorities, although OOCL said its subpoena called for the production of documents.

Said OOCL trades director Stephen Ng: "OOCL has received a subpoena from the Department of Justice Antitrust Division calling for the production of documents. OOCL intends to comply fully with the subpoena."

Said an Evergreen spokesman: "We are cooperating with the authorities in this matter. Evergreen's policy is to conduct business in compliance with applicable competition laws."

Said an FBI spokesman: "We conducted an operation, part of an ongoing investigation and we are unable to release any additional details at this point."

The FBI probe follows ones by other jurisdictions including South Africa and the European Union. These have examined pricing practices by the sector, which is still struggling with its worst slump due to a glut of ships and sluggish global demand.

Last July, EU antitrust regulators accepted an offer from Maersk and 13 competitors to change their pricing practices in order to stave off possible fines.

Last September South African authorities raided some of the world's biggest container lines on suspicion of colluding to inflate rates on shipping routes.

The Hapag-Lloyd spokesman said its planned merger with United Arab Shipping Company would not be affected by the inquiry.

The DoJ has raised concerns over possible anti-competitive behaviour by container shipping lines with the US Federal Maritime Commission (FMC) after they sought approval to form alliances.

The proposed Ocean Alliance involves CMA CGM with APL, China Cosco Shipping, Evergreen and Orient Overseas Container Lines while THE alliance is planned between Hapag Lloyd-UASC, Yang Ming Marine, Mitsui OSK Lines, Kawasaki Kisen Kaisha and NYK Lines.

DoJ acting assistant attorney general Renata Hesse urged the FMC to prohibit or insist on changes to the Ocean Alliance agreement.

"The parties to the proposed agreement are seeking to undertake joint activities that are likely to reduce competition and also may be inconsistent" with the US Shipping Act, she said in her letter published on the DoJ website.

Source : HKSG.