English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

“Nod and a wink” costs Kuehne + Nagel over NZ$3.1 million

AUCKLAND: Kuehne + Nagel International has been fined NZ$3.1 million plus costs of up to NZ$100,000 for its role in a New Zealand-based airfreight cartel.

The Swiss-based logistics giant was the holdout defendant in cartel case brought by the New Zealand Commerce Commission in 2007 against six forwarders who have now been fined a total of NZ$11.95 million. The other five were DB Schenker; Bax Global (now part of DB Schenker); Panalpina World Transport (Holdings) Ltd; EGL (now part of CEVA Logistics) and Geologistics International (Bermuda) Limited.

KN AucklandFollowing a whistleblower filing, the other defendants admitted their roles and paid fines totaling NZ$8.85 million in 2010 and 2011. However Kuehne + Nagel challenged the Commission's jurisdiction over its role in the self-described 'Gardening Club' cartel that hit customers with a 'security' surcharge on airfreight shipments between the UK and New Zealand.

"The Gardening Club was a classic hard-core cartel. Members attended covert, off-site meetings outside of business hours and used code words to describe the agreed surcharges," explained Commission chairman Mark Berry. "Our investigation uncovered emails in which Gardening Club members referred to the agreed surcharges as '...the new price for asparagus for the forthcoming season...,' and 'the price of marrows.'

"When members lacked confidence that cartel members were performing the illegal agreement, they emailed [each other] in terms like, 'I hear... concerns about the price of produce from the garden of Velcro, which appears to be operating as a charitable cooperative for the benevolence of vegetable eaters rather than growers...'" he added.

In December 2010, EGL settled with the Commission and was ordered to pay a penalty of NZ$1.15 million. In the same month, Geologistics International (Bermuda) Limited also settled and paid NZ$2.5 million. In June the following year, BAX Global, Schenker AG and Panalpina World Transport (Holdings) Ltd agreed to pay fines of NZ$1.4 million, NZ$1.1 million and NZ$2.7 million respectively.

"This case involves deliberate and secretive conduct by the freight forwarding companies, but it's important for businesses to recognise that cartels can also take on a less obvious form, like a conversation about pricing at a trade association meeting or a 'nod and a wink' agreement between competitors not to discount a certain product." said Berry.

News

Written on 24/05/2017, 20:42
hapag-lloyd-takes-a-big-step-with-uascHAMBURG: May 24, 2017. Hapag-Lloyd and the United Arab Shipping Company (UASC) have completed their merger. Shareholders at the annual general meeting on...
Written on 23/05/2017, 21:03
dhl-adds-rail-link-between-shenzhen-and-belarusSHENZHEN: May 22, 2017. DHL Global Forwarding has launched the first regular LCL and FCL rail service that connects Shenzhen to Minsk in Belarus in less...
Written on 22/05/2017, 19:48
cathay-pacific-launches-restructuring-with-layoffsHONG KONG: May 22, 2017. Cathay Pacific is making 600 head office staff redundant following the announcement in March of a three-year business...
Written on 18/05/2017, 21:59
air-zimbabwe-banned-from-europeBRUSSELS: May 17, 2017. In an update to its Air Safety List, the European Commission has banned Air Zimbabwe from flying to the 28 EU Member States "due...
Written on 17/05/2017, 22:43
russian-logistics-network-signs-development-agreementMUNICH: May 17, 2017. Meeting at the transport logistic trade fair last week, members of Russia's Associated Cargo Experts Alliance (ACEX) and the...
Written on 17/05/2017, 19:41
oman-to-adopt-tir-conventionMUSCAT: May 17, 2017. The International Road Transport Union (IRU) is to support the Oman Global Logistics Group (OGLG) in developing Oman as a major...
Written on 15/05/2017, 21:56
record-port-call-for-savannahSAVANNAH, GA: MAY 15, 2017. COSCO Development, at 13,000 TEU the largest box ship to call at an U.S. East Coast port, moved a record 10,000 containers...
Written on 11/05/2017, 14:24
lufthansa-cargo-still-caring-for-humansMUNICH: May 10, 2017. Lufthansa Cargo has celebrated the 10th anniversary of its employee-inspired humanitarian logistics program Cargo Human Care (CHC)...
Written on 10/05/2017, 20:34
renewed-b-logistics-rebrands-as-lineasMUNICH: May 10, 2017. Less than two weeks after it re-launched itself as Lineas, rail logistics company B Logistics has come to transport logistic in...
Written on 09/05/2017, 21:52
cranes-get-a-lift-from-hansaHAMBURG: May 09, 2017 – Hansa Heavy Lift (HHL) has moved two 870 tonnes cranes from a decommissioned power station at London's port of Tilbury to...
Written on 09/05/2017, 18:49
ups-to-handle-dubai-expo-logisticsDUBAI: May 09, 2017. UPS is to sponsor the logistics for World Expo 2020 Dubai, to be held between October 2020 and April 2021. The company has also...
Written on 09/05/2017, 16:51
cargolux-carrier-of-choice-emirates-skycargoMUNICH: May 09, 2017. Emirates SkyCargo and Cargolux are to share aircraft capacity, networks and respective hubs in Dubai and Luxembourg in a new...
Written on 05/05/2017, 20:30
new-multipurpose-service-links-u-s-and-mediterraneanLEER, Germany: May 03, 2017. Multipurpose vessel operator BBC Chartering is adding ocean capacity between the Mediterranean and the US- East Coast, with...
Written on 04/05/2017, 20:42
royal-schiphol-group-costs-klm-millions-claimAMSTERDAM: May 04, 2017. KLM reported Q1 2017 revenue of €2.2 billion - a 3.3 percent rise over the same period last year. EBITDA increased €14 million to...
Written on 04/05/2017, 19:06
bmw-to-increase-rail-link-to-chinaMUNICH: May 03. China's news agency Xinhua reports BMW plans to increase its use of 'Silk Road' rail networks to ship components from Europe. According...
Written on 03/05/2017, 20:21
ethiopian-provides-support-for-drought-reliefTOULOUSE: May 02, 2017. German NGO humedica e.V and UK non-profit Aviation without Borders have used an Ethiopian Airlines A350 XWB delivery flight to...
Written on 28/04/2017, 19:13
amazon-3rd-party-fulfillment-revenue-up-34-percentSEATTLE: April 28, 2017. Amazon has reported net income of US$724 million on sales of US$35.71 billion for the first quarter of 2017. Results for the...
Written on 27/04/2017, 19:19
ai-to-feature-at-transport-logistic-in-munichMUNICH: April 27, 2017. A survey of German logistics executives says 70 percent of respondents are investigating the use of artificial intelligence...
Written on 27/04/2017, 17:28
hapag-lloyd-best-shipping-line-brandBERLIN: April 26, 2017. Readers of "Logistik Heute" magazine and a panel of experts from the German Logistics Association (BVL), have recognized...
Written on 27/04/2017, 15:54
british-brands-hit-by-brexitLONDON: April 27, 2017. Valuation and strategy consultant Brand Finance says British brands have lost 6.0 percent of their value since the Brexit vote...

- powered by Quickchilli.com -