Tag Archives: Port of Baltimore

JAPANESE COMPANY AGREES TO PLEAD GUILTY TO PRICE FIXING ON

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WASHINGTON — Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, K-Line conspired to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore.  K-Line participated in the conspiracy from at least as early as February 1997 until at least September 2012.  K-Line has agreed to cooperate with the Department’s ongoing antitrust investigation.  The plea agreement is subject to court approval.

Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel.  Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.

“Our efforts exposed a long-running global conspiracy that operated globally, affecting the shipping costs of staggering numbers of cars, into and out of the Port of Baltimore, and other ports in the United States and across the globe. Today’s announcement demonstrates our continuing resolve to bring the members of this conspiracy to justice.” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “We are continuing our efforts to ensure that both the corporations and individuals involved in this cartel are held accountable for their acts and the harm they inflicted on American consumers.”

According to the charge, K-Line and its co-conspirators conspired by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information. The department said the companies then charged rates in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.

K-Line is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit.  Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Baltimore Field Office at 410-265-8080.

SOUTH AMERICAN COMPANY AGREES TO PLEAD GUILTY TO PRICE FIXING ON OCEAN SHIPPING SERVICES FOR CARS AND TRUCKS

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WASHINGTON — Compañía Sud Americana de Vapores S.A.  (CSAV), a Chilean corporation,  has agreed to plead guilty and to pay an $8.9 million criminal fine for its  involvement in a conspiracy to fix prices, allocate customers and rig bids of  international ocean shipping services for roll-on, roll-off cargo, such as cars  and trucks, to and from the United States and elsewhere, the Department of  Justice announced today.

According to a one-count felony charge filed today in U.S. District Court  for the District of Maryland in Baltimore, CSAV engaged in a conspiracy to  suppress and eliminate competition by allocating customers and routes, rigging  bids and fixing prices for the sale of international ocean shipping services of  roll-on, roll-off cargo to and from the United States and elsewhere, including  the Port of Baltimore.  CSAV participated  in the conspiracy from at least January 2000 to September 2012.  CSAV has also agreed to cooperate with the department’s  ongoing antitrust investigation.  The  plea agreement is subject to court approval.

Roll-on, roll-off cargo is non-containerized cargo that can be both  rolled onto and rolled off of an ocean-going vessel.  Examples of this cargo include new and used cars  and trucks, as well as construction, mining and agricultural equipment.

“Today’s charges  are the first to be filed in the Antitrust Division’s investigation into bid  rigging and price fixing of ocean shipping services,” said Bill Baer, Assistant  Attorney General in charge of the Department of Justice’s Antitrust Division.  “Because of the growth in the automobile ocean  shipping industry over the past 40 years, the conspiracy substantially affected  interstate and foreign commerce.  Prosecuting international price-fixing  conspiracies remains a top priority for the division.”

According to the  charge, CSAV and its co-conspirators carried out the conspiracy by, among other  things, agreeing – during meetings and communications – on prices, allocating  customers, agreeing to refrain from bidding against one another and exchanging  customer pricing information.  The  department said the companies then charged fees in accordance with those  agreements for international ocean shipping services for certain roll-on,  roll-off cargo to and from the United States and elsewhere at collusive and  non-competitive prices.

CSAV is charged with price fixing in violation of the Sherman Act,  which carries a maximum penalty of a $100 million criminal fine for  corporations.  The maximum fine may be  increased to twice the gain derived from the crime or twice the loss suffered  by the victims of the crime, if either of those amounts is greater than the  statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust  investigation into price fixing, bid rigging, and other anticompetitive conduct  in the international ocean shipping industry, which is being conducted by the  Antitrust Division’s National Criminal Enforcement Section and the FBI’s  Baltimore Field Office, along with assistance from the U.S. Customs and Border  Protection, Office of Internal Affairs, Washington Field Office/Special  Investigations Unit.   Anyone with information in connection with  this investigation is urged to call the Antitrust Division’s National Criminal  Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html,  or call the FBI’s Baltimore Field Office at 410-265-8080.