Cartel Digest

Ocean Freight Industry

Ocean Freight Industry
  Overall Cartel Period 2005-2011
  Participants ECU Line Canada Inc. Overseas Container Forwarding, Inc.
  Total Fines (DOJ) No fines imposed
  Total Fines (EC) No fines imposed
In December 2009, Canada’s Competition Bureau (“CCB”) launched its investigation into the price-fixing cartel in ocean freight industry.   Non -vessel operating common carriers(“NVOCC”) arrange the consolidation of less-than-container load shipments into containers, the shipment of these containers by ocean, and the deconsolidation of the containers at the destination.  According to the CCB, between January 1, 2005 and March 6, 2011, the participants of the cartel allegedly entered into collusive agreement or arrangement related to surcharges for the supply of NVOCC export consolidation services from Canada to various foreign destinations.  The CCB became aware of the cartel by way of its immunity program. 
 
Enforcement Highlights:
  • To date, two carriers have pled guilty in Canada, resulting in criminal fines of approximately $1.7 million (CAD).  In addition, two executives of one of the carriers pled guilty and were each sentenced to concurrent conditional sentences ranging from three to four months.
Individual Company Prison Sentence Fine (USD) Plea Date Plea Agreement
Elvio Lancione, Executive Vice President ECU Line Canada Inc. 4 months No fines imposed  
Michael Teixeira, Vice President ECU Line Canada Inc. community service">3 months No fines imposed  
Canada
Company Fine Date
Overseas Container Forwarding, Inc. $ 68,000 04/09/2014
ECU Line Canada Inc. $ 1 million 04/15/2014
Canada
Individual Company Prison Sentence Fine Date
Elvio Lancione, Executive Vice President ECU Line Canada Inc. $ 1 million 04/08/2014
Michael Teixeira, Vice President ECU Line Canada Inc. No fines imposed