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Competition Law News

04 Mar 2024

MOL Wraps Up Fairfield Chemical Carriers Acquisition

MOL Chemical Tankers-operated chemical tanker Ensemble (Credit: MOL)

Mitsui O.S.K. Lines (MOL) has, through its subsidiary MOL Chemical Tankers, completed the acquisition of Fairfield Chemical Carriers, creating one of the world’s largest multi-segregated chemical tanker fleets.The acquisition, valued at $400 million, is based on a share transfer agreement signed at the end of September 2023, which has been approved by the relevant authorities under competition law.The transaction is in line with MOL’s plan to proactively invest in chemical tanker business…

11 Dec 2023

Data Collaboration Demands ‘Systemic Shift’ in Shipping

Increased shipboard automation can boost the operational efficiency of shipping. Image: Bureau Veritas

Shipping’s journey of digital transformation is as much about cultural change - from the boardroom to onboard vessels - to adapt to new ways of working with data collaboration at the core as it is about technology adoption, according to a new Bureau Veritas-backed research study.Digital transformation of the industry “demands a systemic shift in how we work together,” Bureau Veritas Marine & Offshore’s VP Digital Solutions & Transformation, Laurent Hentges, said in the foreword to the report by research firm Thetius…

27 Nov 2023

Study Calls for 'Liberation of Data' in Shipping Shift for Decarbonization

Interconnection of disparate shipboard systems is seen as necessary to drive digitalization for enhanced operational efficiency. Image: BV

Siloed data systems represent a “recipe for duplicative and multiplicative cost inside a company and across companies”, an OrbitMI-hosted panel at the recent Shipping Insight event in the US was told, as a Bureau Veritas-backed study highlighted this as a big barrier to data collaboration for digitalization of shipping to cut emissions.Vast amounts of data are generated from ship operations - such as from sensors onboard or vessel performance management systems - as well as from…

04 Oct 2022

Rival of Container Shipper Matson Can Proceed with Antitrust Lawsuit

Two Matson Inc subsidiaries must face claims from rival container shipping company American President Lines LLC that Matson is abusing its market power over service from the United States to Guam, a federal judge ruled in an antitrust lawsuit.The ruling Friday by U.S. District Judge Christopher Cooper in Washington, D.C., declined to dismiss claims against Matson Navigation Company Inc and Matson Logistics Inc brought by American President Lines last year seeking unspecified monetary damages for alleged violations of U.S. competition law.The court dismissed parent company Matson Inc as a defendant.Honolulu-based Matson, a leading U.S. carrier in the Pacific, in 2021 recorded revenue of more than $3.9 billion.

25 Jul 2022

Cargo Shippers Pressure EU for Review of Container Shipping Regulation

Copyright Andrii Yalanskyi/AdobeStock

Ten trade organizations representing the owners and forwarders of cargo, port terminal operators and other parts of the supply chain dependent on container shipping are demanding an immediate review of European Union’s Consortia Block Exemption Regulation for the container shipping industry.The Regulation exempts container shipping lines from many of the checks and balances of EU competition law and permits them to exchange commercially-sensitive information to manage the number…

24 Jan 2022

Planes, Trains and Ships: Criminal Antitrust Enforcement Speeding Up for Transportation Sector

© enanuchit / Adobe Stock

The Biden administration recently issued a sweeping Executive Order [1] aimed at protecting and enhancing competition, and the transportation sector—including air, ocean, and rail—is among the industries specifically identified and likely to see heightened antitrust scrutiny under the new directives. This executive action was soon followed by the long-awaited announcement of Biden’s pick to lead the U.S. Department of Justice’s Antitrust Division (Division), Jonathan Kanter, who…

08 Jun 2020

Ship Operators File Lashing Complaint With EC

© Jevgenijs / Adobe Stock

Six European shortsea and feeder ship operators have filed an official complaint to the European Commission, claiming International Transport Workers’ Federation (ITF) attempts to force ships to use dockers for container lashing violate EU competition law.In a letter to the Directorate-General for Competition dated May 19, 2020, the operators call for an official investigation into the ITF and affiliated Dutch union FNV Bondgnoten, and their campaign to compel operators to stand down seafarers from shipboard container lashing.

27 May 2020

US Sanctions Advisory Raises Hurdles for Global Maritime Industry

© Igor Yu. Groshev/ Adobe Stock

Ship owners and insurers say it may be impossible for the maritime industry to fully comply with the Trump administration’s new guidelines on how to avoid sanctions penalties related to Iran, North Korea and Syria, raising the risk of disruptions in a sector already struggling with the fallout of the coronavirus outbreak.The advisory issued this month marked the first U.S. sanctions guidance for the global maritime sector, and will test Washington’s ability to clamp down on violations without disrupting an industry that handles 90% of the world’s trade.The final version of the U.S.

16 Feb 2020

WFW Advises TUI on $1.3Bn Take Over

London-based international law firm Watson Farley & Williams has advised TUI Cruises GmbH on its acquisition of Hapag-Lloyd Cruises from TUI AG for US$1.3bn, excluding net debt.According to the the transaction is subject to customary closing conditions and regulatory approvals and is expected to close in summer 2020. The deal includes the acquisition of HL Cruises’ luxury and expedition fleet, consisting of two five-star plus luxury vessels and three expedition cruise ships, by TUI Cruises. This expands TUI Cruises’ existing fleet to twelve cruise ships, which will enable it to participate in the growth of the cruise industry as the…

26 Feb 2019

Maersk: Firm Cleared in U.S. Shipping Investigation

File Image (CREDIT: Maersk)

A.P. Moller Maersk said on Tuesday a U.S. Department of Justice (DoJ) investigation into the practices of container shipping companies had closed and the group was released from any obligations.In 2017, the DoJ ordered top executives from several container shipping lines including Maersk to testify in an antitrust investigation over practices by an industry that is the backbone of world trade."We are pleased to confirm that the United States Department of Justice has closed its…

20 Nov 2018

India to Probe Alleged Antitrust Behavior by Maersk, DP World at Mumbai Port

India's antitrust regulator has ordered a probe into alleged anti-competitive practices by Denmark's A.P. Moller-Maersk and Dubai's DP World at the terminals they operate at the country's largest container port in Mumbai, five sources familiar with the matter told Reuters.The decision by the Competition Commission of India (CCI) to investigate follows a complaint by Singapore's PSA International Pte Ltd, which alleged that Maersk and DP World created entry barriers to hinder the growth of PSA's terminal by colluding on certain charges they levy at the state-owned Jawaharlal Nehru Port Trust (JNPT).Handling 66 million tonnes of cargo in the last fiscal year to March, JNPT is critical to India's international trade.

05 Apr 2018

Second Japanese Shipping Firm Admits to Cartel Conduct

Cartel conduct in cars transported to Australia from 2009-12-ACCC; Nippon Yusen was fined $20 mln in 2017 over cartel conduct. Kawasaki Kisen Kaisha (K-Line) has pleaded guilty to criminal cartel conduct in the transport of vehicles, Australia's competition regulator said on Thursday, the second Japanese shipping company to make such an admission. The conduct relates to the shipping of cars, trucks and buses to Australia between 2009 and 2012, according to the Australian Competition and Consumer Commision (ACCC). Nippon Yusen Kabushiki Kaisha (NYK) was convicted last year by Australia's Federal Court and fined A$25 million ($20 million) for its part in the activity. The ACCC on Thursday declined to disclose details relating to the K-Line complaint.

21 Feb 2018

European Commission Exempts Mitsui O.S.K. Lines from Penalty

The DG Competition of European Commission (EC) announced that several companies including MOL breached European competition law with respect to car carrier services. Mitsui O.S.K. Lines  (MOL) and other shipping companies have been investigated by the EC due to the suspicion of competition law violation. MOL has fully cooperated with the EC during the investigation. Though the EC announced that they found the violation of European competition law and imposed fines, MOL and its subsidiary companies were exempted from all penalty including the fine because EC granted MOL an immunity. "MOL received full immunity for revealing the existence of the cartel, thereby avoiding a fine of ca. €203 million," said a communication from EC.

18 Jan 2018

Ocean Network Express Completes Merger Approvals

South Africa’s competition watchdog becomes final signatory allowing Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL ),  Nippon Yusen Kabushiki Kaisha (NYK ) merger, so that Joint venture (JV) can start operations on April 1. "K Line, MOL and NYK have  announced that their new joint venture company, Ocean Network Express Pte. Ltd., established in July 2017, has received all necessary merger approvals from local competition authorities in regions and countries where such approvals are required for the launch of service by the newly established joint venture company," said a press statement. The green light makes ONE the sixth-largest ocean carrier.

14 Nov 2017

Odfjell, Sinochem Form Chemical Tanker Pool

Kristian Mørch, CEO of Odfjell SE (Photo: Odfjell SE)

Odfjell SE said it has signed Framework Agreement with Sinochem Shipping Singapore Pte. Ltd whereby the Norwegian ship owner will take four vessels on long-term bareboat charter and together form a pool of eight 40,900 dwt chemical tankers. The four chemical tankers are part of Sinochem’s series of eight ordered from Hantong Wing Shipyard in China. Sinochem will retain ownership of the series’ four other vessels, which together with the bareboat vessels will form a pool managed by Odfjell SE and trading as part of the Odfjell Tankers fleet.

04 Aug 2017

NYK to Pay $20 Mln for Cartel Conviction

Australia has fined and convicted Japanese shipping firm Nippon Yusen Kabushiki Kaisha (NYK) for operating as a cartel in relation to the transport of vehicles into the country, its competition regulator said on Thursday. The charges relate to the transportation of motor vehicles to Australia between 2009 and 2012, the Australian Competition and Consumer Commision (ACCC) said in a statement. A new law in Australia criminalised cartel behaviour in 2009, although the activity had been going on since at least February 1997, the ACCC said. "The cartel ... affected vehicles transported to Australia by NYK and other shipping lines from locations in Asia, the U.S. and Europe on behalf of major car manufacturers including Nissan, Suzuki, Honda, Toyota and Mazda," it said.

03 Jul 2017

K Line, MOL, NYK Announce Container Business Merger

Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kabushiki Kaisha (NYK)  announced the establishment of a holding company and an operating company, for the integration of the three companies' container shipping businesses, including terminal operation businesses outside Japan. "The new company to be established has received all necessary approvals for compliance with local competition laws in regions and countries where compliance is required for the new company's establishment, and progress is being made towards completing the establishment of the new integrated container shipping business," said a press release from MOL. Further details will be announced upon completion of all establishment procedures.

28 Dec 2015

China Fines Shippers $63 mln for Price Fixing

China has fined seven shipping companies, including Japan's Kawasaki Kisen Kaisha, a total of 407 million yuan ($62.85 million) for price-fixing, the country's state economic planner said in a statement on Monday. The National Development and Reform Commission (NDRC) said the companies colluded to raise rates on shipments of cars, trucks, and construction machinery across five shipping routes, including between China and Europe, for at least four years, violating the country's anti-monopoly laws. The other six companies fined were Japan's Mitsui OSK Lines and Eastern Car Liner Ltd., South Korea's Eukor Car Carriers, Norway's Wallenius Wilhelmsen Logistics AS, Chile's Compania Sud Americana de Vapores, and a separate shipping subsidiary within CSAV, the NDRC said.

14 May 2015

Glencore Calls for Price Regulation in Newcastle Port

Coal mining giant Glencore has now applied to have the competition watchdog oversee pricing in the  newly privatised Port of Newcastle, reports  The Sydney Morning Herald. The NSW port is hiking some shipping charges up to 60 percent after its $1.75 billion privatisation last year. Glencore has made the application to the National Competition Council, describing the shipping channels in the Port of Newcastle as a natural 'bottleneck' monopoly. This pitch for Australian Competition and Consumer Commission (ACCC) protection comes as management of Victoria's Port of Melbourne stares down a similar threat of declaration under national competition law…

06 Nov 2014

Imtech: Investigating Fraud Allegations

Dutch engineering and construction firm Imtech is investigating allegations it operated a cartel to overcharge German energy company RWE for the building of a power plant in the Netherlands. The allegations, detailed in Dutch newspaper De Telegraaf and German newspaper Handelsblatt on Thursday, follow earlier allegations of accounting fraud at its German and Polish operations. The company put out a statement late on Tuesday in response to questions put to it by the two newspapers in which it mentioned "allegations of possible competition law violations" on "two projects in the energy sector" between 2008 and 2010 without going into further detail.

09 Oct 2014

Maersk: 2M Alliance at 32 pct Asia-Europe Share

An alliance between A.P. Moller-Maersk and MSC Mediterranean Shipping would give the two top container shipping companies a 32 percent market share on Asia-Europe trade routes, the Danish company said on Thursday. Maersk said that in its self-assessment to EU regulators it had concluded the alliance complied with EU competition law. A market share above 30 percent would trigger a regulatory review. But, although the Asia-Europe routes are by far the world's busiest, vessels leaving EU waters on transatlantic routes would also be counted into the overall 30 percent mark. Reporting by Sabina Zawadzki

05 Oct 2014

Russia Going Ahead with South Stream Gas Pipeline

The Russia-led South Stream undersea gas pipeline is still going ahead, Energy Minister Alexander Novak was quoted as saying on Saturday, following concerns the European Union might be losing enthusiasm for the project. The natural gas pipeline, which will cost an estimated $40 billion, is designed to carry Russian gas to the centre of Europe on a route that bypasses crisis-hit Ukraine. The project has yet to be approved by the EU, which is trying to become less dependent on Russian gas. Supplies from Russia currently account for about a third of EU gas imports. "The South Stream project has not been stopped," Novak was quoted as saying by the Interfax news agency. "The agreements which were signed remain in force.

02 Jul 2014

China M&A Rulings Create Hot Competition for Antitrust Lawyers

China's increasing regulatory influence over international mergers and acquisitions has helped to create the hottest new commodity in its legal industry: anti-trust lawyers. Six years ago, China did not even have a legal system for regulating the impact of M&A on competition. Today, its Ministry of Commerce is the biggest wildcard for dealmakers trying to get a major cross-border deal past anti-trust regulators. The ministry's decision last month to reject Danish shipping group A.P. Moller-Maersk's planned alliance with Swiss and French rivals came as a "big surprise" to Maersk Chief Executive Nils Smedegaard Anderson, whose team had been in close contact with the regulator until days earlier.