Commission raids 6 cargo firms

Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, is seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China. Picture: Aly Song

Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, is seen at the Yangshan Deep Water Port, part of the Shanghai Free Trade Zone, in Shanghai, China. Picture: Aly Song

Published Sep 28, 2016

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Johannesburg - The Competition Commission will on Wednesday raid 6 cargo shipping companies operating in the Western Cape and Kwazulu-Natal.

It says in a statement that it has reasonable grounds to suspect 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, among other things, fix the incremental rates for the shipment of cargo from Asia to South Africa.

This, it says, is in contravention of the Competition Act.

The search and seizure operation is conducted as part of an ongoing investigation which was initiated by the commission based on information from a member the public. During the search the commission will seize documents and electronic data, which will be analysed together with other information gathered to determine whether these companies have contravened the Competition Act.

Read also:  It’s the end of an era for Maersk

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.

The commission notes it is authorised to do the search and seize documents which have a bearing on its investigation.

It has obtained warrants authorising it to search the premises of these companies at the Western Cape High Court and Pietermaritzburg High Court. The operation is conducted with due regard to the rights of all the affected persons.

“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 the Commissioner Tembinkosi Bonakele.

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