GRABAR LAW OFFICE INVESTIGATES PRICE-FIXING CLAIMS ON BEHALF OF PERSONS AND ENTITIES WHO SHIPPED GOODS BETWEEN KOREA AND OTHER ASIAN COUNTRIES
In January 2022, the Korea Fair Trade Commission fined 23 shipping companies a total of $81 million for conspiring to fix freight rates on sea routes between Korea and other Asian countries from 2003 to 2018.
The shipping companies fined by the Korean FTC:
- Korea Shipping
- Namseong Shipping
- Dongyeong Shipping
- Dongjin Merchant Marine
- Beomju Shipping
- SM Merchant Marine
- HMM
- Janggeum Merchant Marine (Sinokor)
- Cheonkyung Shipping
- Pan Ocean
- Heung-A Line
- Heung-A Shipping
- Cheongri Navigation
- Evergreen Marine Corporation
- Wan Hai Lines
- Yangming Marine Transport Corporation
- Sealand Maersk Asia
- Pacific International Lines
- New Golden Sea Shipping
- Gold Star Line
- Orient Overseas Container Lines
- SITC
- TS Lines
The shipping routes impacted include:
- Korea-Southeast Asia
- Korea-China
- Korea-Japan
According to the Korean FTC, the shipping cartel conducted 541 meetings between December 2003 and December 2018 in which they agreed on a total of 120 freight rates on import and export routes. The cartel engaged in the following anticompetitive conduct, among others:
- They agreed on various freight rates, including the lowest basic rates, rate charts;
- They introduced and increased various incidental freight rates;
- They agreed on biding prices for large shippers;
- They agreed not to “rob each other of cargo”;
- They set volume agreements;
- They jointly refused to ship cargoes of companies that did not accept the agreed freight rates;
- They closely inspected whether the agreement was being implemented through follow-up meetings and audits; and
- They recognized that their actions were illegal and sought to cover up their actions.
If you are a freight forwarder, manufacturer or other U.S. based person or entity who purchased ocean shipping between Korea and other Asian Countries between 2003 and 2018, you may have been overcharged, and could be eligible to bring a claim to receive a return of your overcharges as well as potentially a court approved incentive award if appropriate.
If you would like to learn more about this matter at no cost to you, contact us at jgrabar@grabarlaw.com or call 267-507-6085.