CADE fines maritime vehicle shipping providers for participation in cartel

On 23 March, the Tribunal of the Administrative Council for Economic Defense (CADE) found the company Hoegh Autoliners Holdings AS and an individual guilty of participating in an international cartel with effects on Brazil. The practice involved automobile shipping companies that operate Roll-on/roll-off (RORO) ships. Their fines amount to BRL 26.4 million.

A RORO ship transports vehicles that roll on and off the vessel via ramps. These automobiles can be rolled on by themselves (cars, buses, trucks, tractors, etc.) or through platform vehicles.

In February 2016, CADE's Office of the Superintendent General launched an administrative proceeding to investigative the anticompetitive practice. The unit found signs of a collusive practice that employed market allocation methods to keep each shipping company with its main customer. This allowed shipping companies to maintain or raise prices and resist to customers' pressure for price cuts.

According to Commissioner Luiz Braido, rapporteur of the case, there was sufficient proof that the conduct affected private tenders and contract negotiations and renewals between shipping companies and automobile manufacturers. In his vote, Mr Braido stated the cartel had an impact on trading lines that involved Brazil.

"The cartel lead to market allocation, price fixing and the imposition of trading conditions. Automobile manufacturers would negotiate or renew contracts with shipping companies that, in turn, shared sensitive information to fix prices and divide the market. The practice had an influence on manufacturers' private tenders for maritime transport in routes in which Brazil was the origin, destination, or intermediate stop".

Agreements

The Tribunal of CADE unanimously agreed to dismiss the case against companies and individuals that executed agreements with the authority, namely Mitsui OSK Lines, Nissan Motor Car Carriers, Nippon Yusen Kabushiki Kaisha, Compañia Sud Americana de Vapores, Kawasaki Kisen Kaisha, Wallenius Wilhelmsen Logistics, Eukor Car Carriers and 54 individuals.

The cease and desist agreements commit the investigated parties to stop participating in the anticompetitive practices and to pay over BRL 29 million in financial contributions to the Ministry of Justices' Fund for De Facto Joint Rights.

Access Case no. 08700.001094/2016-24.