[170910.EN.LOG] NZ Commerce Commission Files Proceeding Against Freight Forwarders

New Zealand's Commerce Commission has filed proceedings in the High Court in Auckland against a number of multi-national companies accused of anti-competitive conduct in the freight forwarding market, and has reached settlement agreements with two others.
In 2007, the Commission began investigating alleged collusion by a number of companies involved in the supply of international freight forwarding services to the New Zealand market. This followed a confidential application for leniency by one of the companies involved in the conduct.


The anti-competitive conduct related to alleged agreements about the implementation and application of certain surcharges and fees on airfreight forwarding services to and from New Zealand.

These agreements are alleged to have had the effect or likely effect of controlling or maintaining the price of airfreight forwarding services in breach of the Commerce Act. Some of the alleged agreements appeared to have been in place since 2001.


Cartel investigations into this conduct are also continuing in Europe and the US.


The New Zealand Commerce Commission has filed proceedings against the following companies:


- A number of companies forming part of the Deutsche Bahn Group that provide freight forwarding services under the DB Schenker brand


- The Brinks Company and Bax Global, having been part of the BAX Group of companies before it was acquired by the Deutsche Bahn Group


- Kuehne + Nagel International


- Panalpina World Transport


- EGL (part of CEVA Logistics)


- Geologistics International (Bermuda)


Prior to filing the proceedings, the Commission was approached by a number of the companies under investigation who wished to engage in settlement negotiations.


As a result, the Commission has already reached agreement to resolve the proceedings in respect of EGL and Geologistics International (Bermuda). In both instances, the local New Zealand subsidiaries (Eagle Global Logistics (New Zealand) and Agility Logistics were not implicated.


These settlements are subject to review by the Court.


The Commission points out that these proceedings should be distinguished from the separate proceedings instituted against a number of airlines for alleged contraventions of Part 2 of the Commerce Act in relation to security and fuel surcharges applied to the international carriage of air cargo in the air cargo industry.


Source : EFT, 13.09.10.