JFTC Issues Final Orders in Car Carrier Investigation
The Japan Fair Trade Commission (JFTC) today issued cease and desist orders and surcharge payment orders against four international ocean shipping companies.
The JFTC issued orders against Nippon Yusen Kabushiki Kaisha, Kawasaki Kisen Kaisha, Ltd., Wallenius Wilhelmsen Logistics, AS and Nissan Motor Car Carrier Co., Ltd, under Article 7(2) and Article 7-2(1) of the Antimonopoly Act (AMA), finding that they violated Article 3 (prohibition of unreasonable restraint of trade) of the AMA with regard to international ocean shipping services for transporting cars and trucks by roll-on, roll-off vessels.
The JFTC’s investigation showed that the freight rates were decided through bilateral negotiation between consignors and the shipping companies on the North American route, the Middle and Near Eastern route and the Oceanian route, hence the tariffs (freight rate tables which are uniformly applied to all consignors) stipulated in the exempted cartels were rarely or never applied to the actual transactions.
As a result of the above-mentioned facts, the JFTC made a request to the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) to take necessary measures on exempted cartels related to the international ocean shipping services, including abolishing the existing exempted cartels for the North American route, the Middle and Near Eastern route and the Oceanian route.
Amount of charges to be paid
- Nippon Yusen Kabushiki Kaisha (NYK LINE) – approx $129.1 million
- Kawasaki Kisen Kaisha, Ltd. (“K” LINE) – approx $56 million
- Wallenius Wilhelmsen Logistics, AS (WWL) – approx $34.3 million
- Nissan Motor Car Carrier Co., Ltd. (NMCC) – approx $4.1 million
Payment deadline is June 19, 2014.
jftc, March 18, 2014