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Jan 21,2022

A fine of 96.2 billion won, 23 shipping companies including Evergreen and HMM plummeted

A few days ago, the Korea Fair Trade Commission issued a statement that it will impose a fine of 96.2 billion won (about RMB 96.2 billion) on 23 Ocean freight services container liner companies (12 local shipping companies and 11 foreign shipping companies) for driving up the shipping costs of South Korea's export routes to Southeast Asia. 500 million) fine.

 

According to Yonhap News Agency, the 12 local Korean shipping companies fined include Koryo Shipping, Changjin Merchant Shipping, SM Line, HMM and other internationally renowned container liner giants, and the remaining 11 foreign shipping companies are CNC, Evergreen Shipping, Wan Hai Shipping, Yang Ming Shipping, Sealand Maersk Asia, PIL, New Golden Sea Shipping, Gold Star Lines, OOCL, SITC Container Lines, TS Lines.

 

Since 2018, Korea's Fair Trade Commission (FTC) has been investigating allegations that HMM, the country's largest container liner, and 22 local and foreign shipping lines colluded to drive up freight rates on routes to Southeast Asia.

 

According to the Korea Fair Trade Commission, between December 2003 and December 2018, the shipping companies met 541 times and reached 120 agreements on freight rates for import and export routes between South Korea and Southeast Asian countries to increase minimum freight and other costs .

 

Ocean freight services

 

According to Yonhap News Agency, South Korean carrier Koryo Shipping has the highest provisional fine of 29.6 billion won; HMM will face a fine of 3.6 billion won; while Singapore-based Sealand Maersk Asia is expected to face a fine of 2.37 billion won.

 

The Justice Committee also decided to issue a corrective order to the Association of Southeast Asian Liner Companies (hereinafter referred to as the Association), which helped these ship owners collude with each other, and imposed a fine of 165 million won.

 

It is worth mentioning that the scope of this penalty is that Ocean freight services companies colluded to increase freight rates from South Korea to the Philippines, Vietnam, Indonesia and other regions. The Korean anti-monopoly department is investigating whether these companies also colluded to increase the minimum shipping fee for routes from South Korea to other regions. freight.

 

The fines announced on Tuesday are also far lower than the 800 billion won that the ministry mentioned in its investigation report last May, because the ministry did not punish shipping companies for colluding to raise prices on import routes.

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