New Zealand continues the price-fixing cash grab
22 / 12 / 2010
NEW Zealand has fined a freight forwarder NZ$2.5 million (US$1.8 million) for its part in an air cargo price fixing cartel.
The Commerce Commission’s win in the New Zealand High Court now heralds further proceedings against the other companies involved.
Geologistics International (Bermuda) agreed to pay the fine and
NZ$50,000 ($37,000) legal fees for agreeing airfreight surcharges with other freight forwarders for cargo between the US and New Zealand.
The judge presiding at Geologistics case described the crime as
“hard-core cartel behaviour”.
Kate Morrison, the commission’s enforcement general manager, said: “The cost of airfreight is very important to New Zealand exporters and importers. Because of the distance from our biggest markets and sources of supply, it is vital that airfreight services are subject to competition between freight forwarders.”
Geologistics agreed in October to pay the US almost $690,000 to settle almost exactly the same price-fixing allegations made against it by the Department of Justice.