Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Geologistics fined $2.5 mln in air cargo cartel case

Freight-forwarder Geologistics fined $2.5 mln in air cargo cartel case

By Paul McBeth

Dec. 22 (BusinessDesk) – Geologistics International (Bermuda) Ltd., the second American freight company to reach a settlement over an alleged air cargo cartel, has been fined $2.5 million for its role in fixing freight forwarding prices.

The company admitted breaching the Commerce Act by entering into a surcharge agreement with rivals that controlled and maintained prices for freight-forwarding between New Zealand and the U.S. The offending was labelled “hard core cartel behaviour” by Justice Christopher Allan in his decision in the High Court in Auckland today. Texas-based freight company EGL Inc. was fined $1.15 million last week.

“The commission is pleased to have worked constructively with the parties to this anti-competitive behaviour,” Commerce Commission General Manager of Enforcement Kate Morrison said in a statement. “Because of the distance from our biggest markets and sources of supply, it is vital that air freight services are subject to competition between freight forwarders.”

Geologistics had already agreed to pay almost US$690,000 to settle price-fixing allegations with U.S. antitrust regulators.

Both freight companies will also pay $50,000 each to cover the regulator’s costs.

The alleged price-fixing has been the subject of antitrust process worldwide, with big settlements from multi-national airlines in Europe and the U.S. Some of the alleged agreements appear to have been in place since 2001.

In 2006, air freight forwarding services in and out of New Zealand generated $450 million in revenue.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Taxing Multinationals: Next Step To Improve System

New legislation to improve the fairness of the tax system and prevent large multinationals from exploiting rules in order to shift their profits offshore has passed another step closer to becoming law. More>>

A Fuel And His Money: Petrol Prices Hit Records

The cost of 91 octane in Wellington and the South Island hit $2.30 a litre last week, beating the previous high set in 2013. Crude oil prices have been rising globally while the New Zealand dollar has fallen, making the cost of fuel more expensive. More>>

ALSO:

NZentry: EU And NZ To Start Free Trade Talks

A free trade deal between New Zealand and the European Union (EU) has taken a major step forward with the announcement overnight that the EU’s Foreign Affairs Council has approved its negotiating mandate. More>>

ALSO:

You'd Hope: Employers Told To Pay Minimum Wage

Advertisers offering jobs to backpackers are being told they must pay the minimum wage or risk prosecution. Last week, RNZ revealed a job website - Backpackerboard - was advertising roles below the $16.50 per hour minimum wage. More>>

ALSO:

Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>

ALSO: