Forwarders face South African fines

KUEHNE + Nagel and Schenker’s South African businesses have agreed to pay cargo price-fixing penalties.

The two firms each paid an administrative penalty just short of R1 million (US$133,472) for price-fixing in contravention of South Africa’s Competition Act.

The penalties constitute five per cent of each firm’s relevant turnover in 2007.

Competing freight forwarders including affiliated firms in the Bax and Kuehne + Nagel groups in China, Germany and the UK conspired a few years before 2007, court documents show.

In two instances the collusion involved discussions between the competitors on the introduction of a fee to cover additional costs arising from the pre-clearance systems required by the UK for shipments outside the country, and by US customs for certain shipments originating in Germany.