Monday, April 22, 2019

SHIPPING RACKET UNRAVELS

One of  the many vessels in the  ghost fleet  which  passed through  Townsville  in recent weeks   was   the  stand  out  vehicle carrier  Talia , 199.95metres long x 32.5  metres , flying  under the  Bahamas  flag . A considerable number of  vehicle carriers    pass   through   Townsville ,  some  of  them proven to have belonged to   a  criminal   shipping    cartel ,  which   meant  Australia was    being  slugged   by   price  fixing   of   roll-on roll  off   transport   costs  .
 
 As a matter of fact, the  Norwegian  line  Wallenius  Willhelmsen  Logistics   was  fined   $US 98.9 million  , $130 million Australian ,when it pleaded  guilty to   cartel  price  fixing . The US Department of Justice  reported  four companies , including  NYK ( Nippon Yusen Kabushiki Kaisha ) , the   world's  fourth biggest shipping group , seen in Townsville ,   had  pleaded guilty  to participating in a  roll-n roll-off    cartel   and    fined  a  total  of  $230 million .
 
 An NYK  executive was jailed for  15 months  and the  Japan Fair Trade Commission  ordered the company  pay  a  fine of   13 billion yen ( $160 million )   for  fixing prices on routes which included between  Japan and Australia .  In 2017 the Australian Federal Court  fined  NYK $25 million  for  its involvement in   fixing  the   price of  car  transport  to Australia .
 
With information supplied by America , the Australian  Competition and Consumer  Commission (ACCC)  a second Japanese  company in the cartel , the K-Line, has pleaded guilty  and   will be  sentenced  in  the  near  future .  
 
Other   cartels  are  under   investigation  in  Australia with much  information flooding  into  the  ACCC, its  operations  to  be  extended.