Tag Archives: roll-off cargo

Second Ocean Shipping Executive Pleads Guilty to Price Fixing on Ocean Shipping Services For Cars and Trucks

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A former executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) pleaded guilty today and was sentenced to 14 months in a U.S. prison for his 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 the one-count felony charge filed in U.S. District Court for the District of Maryland in Baltimore on Dec. 29, 2014, Takashi Yamaguchi, who was a general manager and executive officer in K-Line’s car carrier division, conspired to allocate customers and routes, rig bids and fix 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.  Yamaguchi participated in the conspiracy from at least as early as July 2006 until at least April 2010.

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

“Today’s sentencing is another step in our efforts to hold executives accountable for raising the cost of shipping cars, trucks and other equipment to and from the United States,” said Bill Baer, Assistant Attorney General for the Antitrust Division.  “We will continue to pursue the corporations and executives whose illegal agreements have harmed American consumers.”

Pursuant to the plea agreement, which was accepted by the court today, Yamaguchi was sentenced to serve a 14-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy.  In addition, Yamaguchi has agreed to assist the department in its ongoing investigation into the ocean shipping industry.

Yamaguchi was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual.  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 sentence is the second imposed against an individual in the division’s ocean shipping investigation.  Previously, three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including Yamaguchi’s employer K-Line, which was sentenced to pay a criminal fine of $67.7 million in November 2014.  Another K-Line executive was sentenced one week ago by the court in Baltimore.

Today’s plea agreement 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.

OCEAN SHIPPING EXECUTIVE PLEADS GUILTY TO PRICE FIXING ON

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Executive Agrees to Serve 18 Months in U.S. Prison

WASHINGTON — An executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) pleaded guilty today and was sentenced to 18 months in a U.S. prison for his 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 the one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, Hiroshige Tanioka, who was at various times an assistant manager, team leader and general manager in K-Line’s car carrier division, conspired to allocate customers and routes, rig bids and fix 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. Tanioka participated in the conspiracy from at least as early as April 1998 until at least April 2012.

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

“For more than a decade this conspiracy has raised the cost of importing cars and trucks into the United States,” said Assistant Attorney General Bill Baer for the Department of Justice’s Antitrust Division.  “Today’s sentencing is a first step in our continuing efforts to ensure that the executives responsible for this misconduct are held accountable.”

Today’s sentence was the first to be imposed against an individual in the division’s ocean shipping investigation.  Previously, three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including Tanioka’s employer K-Line, which was sentenced to pay a criminal fine of $67.7 million in November 2014.

Pursuant to the plea agreement, which was accepted by the court today, Tanioka was sentenced to serve an 18-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy.  In addition, Tanioka has agreed to assist the department in its ongoing investigation into the ocean shipping industry.

Tanioka was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual.  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 plea agreement 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.