Subscribe to our free, weekly email newsletter!


Global cargo airlines hit hard for price fixing

This was part of a worldwide investigation into air cargo cartel activities, with airlines pleading guilty and paying fines in the US, Canada, Australia, New Zealand and South Korea
By Patrick Burnson, Executive Editor
November 10, 2010

In a move that was widely anticipated, the European Commission imposed heavy fines on eleven air cargo carriers today for price fixing.

This was part of a worldwide investigation into air cargo cartel activities, with airlines pleading guilty and paying fines in the US, Canada, Australia, New Zealand and South Korea, and ongoing investigations in those countries and others, including South Africa.

Meanwhile the U.S. justice department continues its investigation of freight forwarders guilty of price-fixing. Indeed, they are calling upon shippers to share information on any anticompetitive conduct they may be aware of by calling the Antitrust Division’s National Criminal Enforcement Section.

Each company is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million per offense for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

While the impact on U.S. shippers has yet to be measured, this issue will be among several addressed at the upcoming National Industrial Transportation League confence next week.
“Along with security, this is something that deserves greater scrutiny,” said Richard Macomber, chairman of the NITL air cargo committee.”

The League’s 103rd Annual Meeting/ TransComp Exhibition, will be held November 14-16, 2010 in Ft. Lauderdale, FL.

The EU commission’s four-year investigation into price fixing resulted with fines totaling $1.1 billion. The hardest hit was Air France-KLM, which represents Europe’s biggest cargo airline. Its fine was $476 million. Next to be heavily fined was British Airways ($145.6 million) and Singapore Airlines ($104.7 million).

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA