Many South Korean liner companies will be sanctioned for allegedly driving up freight!
According to Yonhap News Agency’s report on May 10, the country’s antitrust regulator, the Korea Fair Trade Commission (KFTC), is reviewing the suspected actions of HMM, Xingya Shipping, and other liner companies in the country for allegedly raising freight charges, and plans to make customized rulings. Measures.
Many South Korean liner companies will be sanctioned for allegedly driving up freight!
Yonhap news agency related reports
According to the report, in July 2018, South Korean timber importers filed a complaint with the Korean Fair Trade Commission because of the fact that domestic liner companies jointly increased freight rates on Southeast Asian routes and suspected of collusion.
After receiving the complaint, the Korea Fair Trade Commission conducted on-site investigations on liner companies such as HMM and Xingya Shipping. In the course of the investigation, in addition to the evidence of price collusion in Southeast Asia routes, clues of price collusion were also found on other routes, and the subjects of investigation were also expanded to more liner companies.
In addition, the Korea Fair Trade Commission also plans to conduct an in-depth investigation into suspected price collusion on routes outside Southeast Asia.
Many South Korean liner companies will be sanctioned for allegedly driving up freight!
In response to the aforementioned investigation, the South Korean shipping industry retorted that, in accordance with South Korea's "Maritime Law", shipowners are allowed to take joint actions.
It is understood that Article 29 of the South Korean Maritime Law stipulates that liner companies can sign contracts related to freight, ship configuration, cargo loading and other transportation conditions, or take joint actions.
However, the Korean Fair Trade Commission believes that if the joint conduct of the business operator complies with the Maritime Transport Act, the application of the law can be exempted, but the premise is that it must meet the requirements of prior written consultations with the cargo owner, declaration of the content of the joint conduct to the Ministry of Oceans and Fisheries of Korea, and no restrictions on compliance. Conditions such as withdrawal in common behavior. The joint behavior of the liner company does not meet the above conditions and is an improper joint behavior.
The agency further stated that the specific sanctions will be decided after the South Korean liner company provides written feedback.
