Cartel Digest

Freight Forwarders

Freight Forwarders
  Overall Cartel Period 2002-2007
  Participants EGL Inc.; Kuhne + Nagel International AG; Geologistics International Management; Panalpina World Transport Ltd.; Schenker AG; BAX Global Inc.; Kintetsu World Express Inc.; Hankyu Hanshin Express Co., Ltd; Nippon Express Co., Ltd.; Nissin Corporation; Nishi-Nippon Railroad Co., Ltd.; Vantec Corporation; MOL Logistics Co., Ltd.; CEVA Freight (UK) Limited, and EGL, Inc.; DHL Global Forwarding (UK) Limited & Deutsche Post AG; Exel Freight Management (UK) Limited & Exel Limited; Schenker Limited; UPS Supply Chain Solutions, Inc.
  Total Fines (DOJ) $120 million
  Total Fines (EC) €169 million

Since 2011, sixteen companies agreed to plead guilty as a result of a U.S. Department of Justice (“DOJ”) investigation into price-fixing in the freight forwarding industry.  Freight forwarders receive, package, prepare and warehouse cargo freight for their customers and arrange for shipment of the cargo.  The companies engaged in the conspiracy agreed to fix certain service fees and charges on their freight forwarding customers for cargo shipped by air from Japan to the United States from about September 2002 until at least November 2007.
 
On February 10, 2010, the European Commission (“EC”) acknowledged sending a Statement of Objections to numerous companies concerning their alleged participation in price-fixing cartels in the air freight forwarding business.  Surprise inspections were carried out in October 2007.
 
Enforcement Highlights:

  • The DOJ investigation has resulted in over $100 million in fines.
  • The Japan Fair Trade Commission issued cease and desist orders and surcharge payment orders to twelve companies.  The surcharge payments totaled over 9 billion yen.  Two additional companies were found to have committed violations but were subject to neither a cease and desist order nor a surcharge payment order.
     

New Export System Cartel (PDF)

Advanced Manifest System Cartel (PDF)

Currency Adjustment Factor Cartel (PDF)

Peak Season Surcharge Cartel (PDF)

Company Conspiracy Period Fine (USD) Plea Date No. of Excluded Individuals Plea Agreement
EGL Inc. 1/02-1/07 $4.5 million 09/30/2010 N/A  
Kuhne + Nagel International AG 1/02-1/07 $9.9 million 09/30/2010 N/A  
Geologistics International Management 1/03-1/07 $700,000 09/30/2010 N/A  
Panalpina World Transport Ltd. 1/03-1/07 $11.9 million 09/30/2010 N/A  
Schenker AG 1/04-1/07 $3.5 million 09/30/2010 N/A  
BAX Global Inc. 1/02-1/07 $19.7 million 09/30/2010 N/A  
Kintetsu World Express Inc. 1/02-1/07 $10.5 million 09/28/2011 N/A  
Hankyu Hanshin Express Co., Ltd. 1/02-1/07 $4.5 million 09/28/2011 N/A  
Nippon Express Co., Ltd. 1/02-1/02 $21.1 million 09/28/2011 N/A  
Nissin Corporation 1/02-1/07 $2.6 million 09/28/2011 N/A  
Nishi-Nippon Railroad Co., Ltd. 1/02-1/07 $4.7 million 09/28/2011 N/A  
Vantec Corporation 1/02-1/07 $3.3 million 09/28/2011 N/A  
MOL Logistics Co., Ltd. 1/02-1/07 $1.8 million 09/30/2011 N/A  
Yamato Global Logistics Japan Co. Ltd. 9/00-11/07 $2.3 million 09/19/2012 N/A  
K Line Logistics Ltd. 9/02-11/07 $3.5 million 03/08/2013 N/A  
Yusen Logistics Co. Ltd. 9/02-11/07 $15.4 million 03/08/2013 N/A  
Japan
Company Fine Date
Nippon Express Co., Ltd. ¥ 2.4 billion 03/18/2009
Kintetsu World Express Inc. ¥ 1.7 billion 03/18/2009
Yusen Air & Sea Service Co. Ltd. ¥ 1.4 billion 03/18/2009
Nishi-Nippon Railroad Co., Ltd. ¥ 851 million 03/18/2009
Hankyu Hanshin Express Co., Ltd. ¥ 674 million 03/18/2009
Nissin Corporation ¥ 525 million 03/18/2009
Vantec World Transport Co. Ltd. ¥ 417 million 03/18/2009
K Line Logistics ¥ 320 million 03/18/2009
Yamato Global Logistics Japan Co. Ltd ¥ 277 million 03/18/2009
MOL Logistics Co., Ltd. ¥ 165 million 03/18/2009
Hanshin Air Cargo Co. Ltd. ¥ 90 million 03/18/2009
United Aircargo Consolidators, Inc. ¥ 11 million 03/18/2009
Europe
Company Fine Date
(NES Cartel) Kuehne, Nagel Ltd. & Nagel International Ltd. € 5.3 million 03/28/2012
(NES Cartel) Schenker Limited (as an economic successor of Bax Global Ltd. (UK)) € 3.6 million 03/28/2012
(NES Cartel) UPS Supply Chain Solutions, Inc. (as economic successor of Menlo Worldwide Forwarding Inc.) € 2.2 million 03/28/2012
(NES Cartel) CEVA Freight (UK) Limited, and EGL, Inc. € 2 million 03/28/2012
(NES Cartel) DHL Global Forwarding (UK) Limited & Deutsche Post AG Immunity 03/28/2012
(NES Cartel) Exel Freight Management (UK) Limited & Exel Limited Immunity 03/28/2012
(AMS Cartel) Kuehne, Nagel Management AG and Kuehne, Nagel International AG € 36.6 million 03/30/2012
(AMS Cartel) Panalpina Management AG and Panalpina World Transport (Holding) LTD € 23.6 million 03/30/2012
(AMS Cartel) Schenker AG and Deutsche Bahn AG € 23 million 03/30/2012
(AMS Cartel) UPS Supply Chain Solutions, Inc. and United Parcel Service, Inc. € 3.5 million 03/30/2012
(AMS Cartel) UTi Worldwide, Inc., UTi Worldwide (UK) Ltd and UTi Nederland B.V.2 € 3 million 03/30/2012
(AMS Cartel) Agility Logistics Limited € 2.2 million 03/30/2012
(AMS Cartel) DSV Air & Sea SAS € 379,000 03/30/2012
(AMS Cartel) DHL Management (Schweiz) AG and Deutsche Post AG Immunity 03/30/2012
(AMS Cartel) Exel Limited, Exel Freight Management (UK) Limited and Exel Group Holdings (Nederland) B.V. Immunity 03/30/2012
(CAF Cartel) UPS SCS (China) Ltd. and United Parcel Service, Inc. € 3.9 million 03/30/2012
(CAF Cartel) Panalpina China Ltd and Panalpina World Transport (Holding) Ltd € 3.2 million 03/30/2012
(CAF Cartel) Schenker China Ltd. and Deutsche Bahn AG € 3 million 03/30/2012
(CAF Cartel) Schenker China Ltd. (as an economic successor of BAX Global (China) Co. Ltd.) € 2.4 million 03/30/2012
(CAF Cartel) CEVA Freight Shanghai Limited and EGL, Inc. € 935,000 03/30/2012
(CAF Cartel) Nippon Express (China) Co., Ltd. € 812,000 03/30/2012
(CAF Cartel) Beijing Kintetsu World Express Co., Ltd. € 623,000 03/30/2012
(CAF Cartel) Kuehne, Nagel Ltd. and Kuehne, Nagel International AG (Shanghai) € 451,000 03/30/2012
(CAF Cartel) Yusen Shenda Air & Sea Service (Shanghai) Ltd. € 319,000 03/30/2012
(CAF Cartel) DHL Global Forwarding (China) Co. Ltd. Immunity 03/30/2012
(CAF Cartel) DHL Logistics (China) Co., Ltd. Immunity 03/30/2012
(PSS Cartel) Panalpina China Ltd and Panalpina World Transport (Holding) Ltd € 19.5 million 03/30/2012
(PSS Cartel) Kuehne, Nagel Ltd. and Kuehne, Nagel International AG (Hong Kong) € 11.2 million 03/30/2012
(PSS Cartel) Hellmann Worldwide Logistics Ltd. Hong Kong and Hellmann Worldwide Logistics GmbH & Co. KG € 4.2 million 03/30/2012
(PSS Cartel) Expeditors Hong Kong Ltd. and Expeditors International of Washington, Inc € 4.1 million 03/30/2012
(PSS Cartel) Toll Global Forwarding (Hong Kong) Limited and Toll Global Forwarding Limited € 2.9 million 03/30/2012
(PSS Cartel) Agility Logistics Limited (Hong Kong) € 2.6 million 03/30/2012
(PSS Cartel) Schenker International (H.K.) Ltd. and Deutsche Bahn AG € 2.6 million 03/30/2012
(PSS Cartel) DHL Global Forwarding (Hong Kong) Limited and Deutsche Post AG Immunity 03/30/2012
(PSS Cartel) DHL Supply Chain (Hong Kong) Limited and Exel Limited Immunity 03/30/2012