FAS exposed a cartel on the market of container transportation involving foreign companies

The Federal Antimonopoly Service (FAS Russia) found that five largest marine container carriers, that controls over 20% share of Russian market, took part in a cartel, said Deputy Head of FAS Alexander Kinev.

At a press-conference on 21 December he stated: "FAS found that A.P. Moller-Maersk A/S (Denmark), CMA CGM SA (France), Hyundai Merchant Marine Co. Ltd (Korea), Orient Overseas Container Line Limited (Hong Kong) и Evergreen Marine Corp (Taiwan) violated the Federal Law “On Competition” by exercising concerted actions that led to fixing mark-ups to freight rates on the market of liner container shipping on the Far East / Southeast Asia – the Russian Federation (St Petersburg, Ust-Luga) routes in 2012-2013".

The antimonopoly body established that information about mark-ups was published on a web-site of a particular carrier while other market participants fixed the same mark-ups simultaneously and in a relatively uniform manner.

According to the Head of FAS Anti-Cartel Department, Andrey Tenischev, the costs of shipping a single container at that period reached US% 1300. "He added: “It should be pointed out that already in the course of investigating the case, companies cut it down by 20%. We expect further reductions”.

Alexander Kinev also pointed out that FAS has not decided yet on the size of the fines upon the companies – the issue will be solved in 2016. FAS will not issue determinations, however, because the carriers terminated the violations during the investigation.

FAS representatives also pointed out that as far back as in 2013, simultaneously with Russian antimonopoly authority, the European Commission initiated a similar investigation against the companies upon similar grounds. The Commission, however, has not announced the results of its investigation yet. Alexander Kinev stated that before economic sanctions FAS and the European Commission cooperated and exchanged information on the case.