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

French fine logistics companies €672 million

PARIS: December 15, 2015. L'Autorité de la concurrence, France's Competition Authority (FCA) has fined 20 logistics companies and their trade association, L'Union des Entreprises de Transport et de Logistique de France (TLF), a total of €672 million for alleged price fixing between September 2004 and 2010.

Express finesIn announcing its decision, the FCA claimed the companies met regularly at the TLF to agree prices they would charge their customers: "The discussions were secret and were not subject to any official record," it said, adding that "instead of playing its role of vigilance in compliance with competition rules, [the TLF was] actively involved in the organization of illicit trade and the protection of confidentiality."

The companies fined by the FCA are: Alloin, BMVirolle, Chronopost, Exapaq (now France DPD) Ciblex Dachser France, DHL Express France, FedEx Express France, Gefco, Geodis, GLS France, Heppner, Lambert and Valletta XP France, Norbert Dentressangle Distribution, Normatrans, Jewel-Schenker, TNT Express France, Transport Henri Ducros and Ziegler France.

Geodis topped the list of fines at over €196 million followed by Chronopost with €99 million and DHL Express France at €81 million.

In calculating penalties, the FCA said it had taken into account behavior duration, severity and the damage caused to the French economy - particularly SMEs which it said were the main "victims" of the alleged price fixing.

The TLF responded saying the fines, 10 years after the fact, were "particularly heavy" and didn't reflect the possible damage done to the market. It added that because of declining prices and revenue over the past 15 years, bankruptcies in the logistics sector have multiplied with more than 15,000 jobs lost.

Noting that large companies will be able to survive the fines and the two unnamed whistleblowers will gain a competitive advantage, the TLF concluded "SME's will come out very weakened [and] penalties imposed today will further exacerbate the structural crisis facing the industry."

In a statement, TNT said it had been ordered to pay €58 million for "alleged anti-competitive behaviour in the French parcel delivery sector". The company, which is due to merge with FedEx Corp. next year, said the case relates to activities that took place before 2010 and it had cooperated with the FCA to reach a settlement during the third quarter of 2014. TNT added it would review the merits of today's decision.

Kuehne + Nagel (K+N) has also responded to the FCA fine of the Alloin Group, a groupage operation it acquired in 2009. K+N said €31 million of the €32 million penalty (see table) is attributable to the period before it purchased Alloin: "Kuehne + Nagel dissociates itself from such business practises, has a comprehensive compliance programme in place, which is continuously improving, and has been cooperating with the French Competition Authority since 2010," it declared. The company added it is considering an appeal and possible action against the Alloin family, the previous owners.

News

Written on 24/03/2017, 19:32
malaysia-and-alibaba-to-build-digital-trade-platformKUALA LUMPUR: March 23, 2017. Alibaba is to partner with the state-run Malaysia Digital Economy Corporation (MDEC) to host what company executive chairman...
Written on 24/03/2017, 16:31
ai-becomes-truckload-matchmakerHAMBURG: March 24, 2017. As PwC releases a report suggesting 950,000 jobs will be lost in the UK transport sector from the use of artificial intelligence...
Written on 24/03/2017, 15:49
dp-world-eyes-panama-as-net-profit-jumpsDUBAI: March 22, 2017. DP World has reported a 29.9 percent rise in net profit for 2016 to US$1.26 billion, on a 4.9 percent increase in revenue to total...
Written on 22/03/2017, 22:12
new-ocean-carrier-alliances-to-shake-things-upGENEVA/BRUSSELS: March 22, 2017. The impending operation of three ocean box alliances on April 01 has prompted fears of capacity constraints and rising...
Written on 20/03/2017, 19:53
volga-dnepr-paid-former-u-s-national-security-advisorWASHINGTON, DC: March 20, 2017. As Congressional hearings begin on possible connections between the Trump presidential election bid and Russia, evidence...
Written on 17/03/2017, 20:55
lufthansa-group-reports-rise-in-net-profitFRANKFURT: March 16, 2017. The Lufthansa Group has reported a 4.6 rise in net profit to €1.77 billion in 2016 on a 1.2 percent drop in revenue to €31.66...
Written on 17/03/2017, 19:19
another-airline-level-for-iagBARCELONA: March 17, 2017. International Airlines Group (IAG) will begin flights from Barcelona to Los Angeles, Oakland, Punta Cana in the Dominican...
Written on 17/03/2017, 17:39
european-commission-re-imposes-cargo-finesBRUSSELS: March 17, 2017. The European Commission has renewed its decision to fine 11 airlines €776.46 million for operating an air cargo cartel between...
Written on 15/03/2017, 20:15
ups-continues-to-reduce-ghg-emissionsATLANTA, GA: March 15, 2017. UPS is to spend an additional US$90 million on expanding its U.S. natural gas fueling infrastructure and acquiring more...
Written on 14/03/2017, 21:13
air-cargo-stuck-in-the-16th-centuryABU DHABI: March 14, 2017. Speaking at the opening of the 11th World Cargo Symposium, IATA director general and CEO Alexandre de Juniac warned air cargo...
Written on 09/03/2017, 20:41
u-s-infrastructure-strong-risk-of-failureRESTON, VA: March 09, 2017. The American Society of Civil Engineers (ASCE) says restoring U.S. infrastructure to its competitive position will cost the...
Written on 08/03/2017, 19:52
zte-fined-over-a-us-1-billionDALLAS/ SHENZHEN: March 07, 2017. ZTE, a provider of telecommunications systems, mobile devices and enterprise technology solutions, has been fined...
Written on 07/03/2017, 22:51
no-additional-trade-tariffs-warns-mexicoDETROIT, MI: March 06, 2017. Addressing executives from the U.S. auto industry, Mexico Secretary of Commerce Ildefonso Guajardo Villarreal has reiterated...
Written on 07/03/2017, 20:38
maersk-and-ibm-to-launch-digital-trade-solutionARMONK, NY: March 06, 2017. Following ratification of the WTO's Trade Facilitation Agreement, IBM and Maersk are developing the use of blockchain...
Written on 06/03/2017, 20:36
dsv-signs-red-cross-agreementCOPENHAGEN: March 07, 2017. DSV and Denmark's Red Cross have signed a global logistics agreement that includes the donation of two warehouses. With a...
Written on 06/03/2017, 19:07
good-start-for-air-cargo-in-2017GENEVA: March 07, 2017. Noting an increase in the shipment of silicon materials, IATA reported a 9.0 percent year-on-year jump in airfreight...
Written on 03/03/2017, 21:33
iata-repeats-trump-warningWASHINGTON, DC: March 03, 2017. IATA has reiterated its warning to the Trump Administration about a future of restricted borders and protectionism. "Our...
Written on 02/03/2017, 22:52
america-first-for-tradeWASHINGTON, DC: March 02, 2017. With the confirmation of Trump's billionaire Florida neighbor Wilbur Ross as U.S. Commerce secretary, a recent Gallup poll...
Written on 27/02/2017, 22:24
us-400-billion-exposure-for-shipping-industryLONDON: February 27, 2017. New research suggests financial institutions supporting the global shipping industry have a US$400 billion exposure to future...
Written on 27/02/2017, 20:23
new-box-terminal-to-help-mexico-tradeLAZARO CARDENAS, MEXICO: February 27, 2017. The APM Terminals' facility at Lazaro Cardenas on Mexico's Pacific Coast has officially opened for business...

- powered by Quickchilli.com -