BRUSSELS (Dow Jones) The European Commission fined 14
air-freight-forwarding companies, including United Parcel Services
Inc. (UPS), Switzerland-based Panalpina Welttransport (Holding) AG
(PWTN.EB) and local rival Kuehne + Nagel International AG, a total
of EUR169 million for operating a cartel on several routes.
However, the EU's antitrust unit said it would exempt Deutsche
Post AG (DPW.XE) unit DHL Global Forwarding and Exel from fines
because it informed the regulator about the collusion.
Most big operators were fined over the case. The probe concerned
price-fixing in four separate cartel infringements, including
freight-forwarding services from the U.K. to outside the European
Economic Area; from the EEA to the U.S.; from China to the EEA; and
from southern China and Hong Kong to the EEA.
The Commission launched surprise raids of the companies in
October 2007.
Kuehne + Nagel were fined about EUR54 million in total.
Panalpina were fined just under EUR50 million. UPS was fined about
EUR10 million.
EU antitrust commissioner Joaquin Almunia said the companies
involved were "fully aware" of the illegal activities they were
engaged in. "These cartels affected individuals and companies
shipping goods on important trade lanes," he said. "Many European
exporters and consumers of imported goods may have been harmed as a
result."
German logistics and mailing company Deutsche Post AG had always
said its DHL Global Forwarding division had immunity from any
antitrust fines that the commission may impose on guilty companies
as it was the first one to reveal the existence of the cartel to
the Brussels-based antitrust authority in 2007.
Freight-forwarding consists of organizing the transport of goods
including customs clearance, warehousing and ground services. It is
traditionally a low-margin, equipment and labor-intensive industry,
where friendly rivals have enabled smoother global services.
The cartel investigation launched in 2007 could fundamentally
change the way these companies cooperate, industry officials have
said.
-By Laurence Norman, Dow Jones Newswires; +32 (0)2 741 1481;
laurence.norman@dowjones.com