The price-fixing allegations only add to the list of recent legal issues faced by Maersk. (Photo: Supplied) 
The shipping companies named in the Competition Commission statement are:
- Mediterranean Shipping Company;
- CMA CGM Shipping Agencies South Africa;
- Pacific International Lines South Africa;
- Mitsui OSK Lines South Africa;
- Evergreen Agency South Africa;
- COSCO Shipping Lines South Africa; and
- K Line Shipping South Africa.
The companies allegedly colluded to fix the General Rate Increase (GRI) – an increase on the base shipping rate charged to customers – on trade routes over a 10-year period between 2008 and 2018.
The scheme targeted shipping lanes which connect South Africa with Asia and West Africa, with the commission’s investigation revealing that the shipping companies charged the same GRI for trade routes from Shanghai, Ningbo and Shekou to Durban, from Durban to Hong Kong, as well as from Qingdao to Durban.
This is in direct contravention of the Competition Act, as it eliminates competition and artificially inflates costs for both businesses and consumers. Commissioner Doris Tshepe emphasised the broader impact of putting an end to the alleged shipping cartel.
“The dismantling of the cartel will reduce the price of goods imported to South Africa for the benefit of consumers and will also reduce the costs of exports out of South Africa, which will, in turn, render the South African exports competitive in the world markets,” said Tshepe.
Maersk’s ongoing legal troubles
The price-fixing allegations only add to the list of recent legal issues faced by Maersk, the Danish-based multinational, which has operations in more than 130 countries. The company was embroiled in a high-profile battle during the past year over a Port of Durban concession.
In October, the high court in Durban dismissed a legal challenge by Maersk’s APM Terminals unit, a Maersk subsidiary and network of inland terminals around the world, against Transnet’s decision to award a 25-year concession to run the Durban Container Terminal (DCT) Pier 2 to the Philippines-based International Container Terminal Services (ICTSI).
The Durban port, one of the busiest in the country, handles more than 86 million tons of cargo annually, with about 60% of all imports and exports into the country passing through.
The public-private partnership comes as part of a move by Transnet to modernise the container terminal, which handles almost half of the country’s container volumes, after years of inefficiency. Maersk and ICTSI were the main bidders. ICTSI secured the partnership after submitting an offer of R11.1-billion, which exceeded Maersk’s bid of R9.2-billion.
Maersk challenged Transnet’s decision in March 2024 and also argued against a solvency calculation method used by ICTSI in the tender process. However, the court ruling, delivered by Judge Mahendra Chetty, found that Maersk delayed bringing forth its challenge and upheld Transnet’s decision to award ICTSI the 25-year contract.
“This ruling reaffirms our confidence in the legality of the bidding process and validates our commitment to operating with integrity and in full compliance with the law,” Hans-Ole Madsen, ICTSI regional head, said at the time.
“We have always believed in the strength of our position, and we are pleased that the court has agreed,” said Madsen.
Maersk South Africa told Freight News South Africa in October that its APM Terminals division had filed the challenge in good faith, and that the company remained a committed partner in the country’s development. DM