A powerful shippers group in Brazil is calling on the national government to investigate suspected price fixing by liner shipping companies
A powerful shippers group in Brazil is calling on the national government to investigate suspected price fixing by liner shipping companies operating in the South American country. The Centre for Industries for the State of Sao Paulo (Ciesp) wants the investigative arm of the Secretariat for Economic Law in Brasilia, part of the Ministry of Justice, to look into allegations that a “suspected cartel” is operating in Brazil, and this is working against the interests of shippers. Ciesp has made similar claims in the past but this one refers to the price increase of $200 per container on the Brazil-US and Brazil-Europe trade that had been scheduled for 1 October, and the association says it has evidence of price fixing. Ciesp VP Maurice Costin told Fairplay: “Four shipping lines all tried to increase their freight rates by the same amount and on the same day. Under Brazilian law and under international rules, this is not allowed. It looks very much like a cartel to me.” The four lines are MSC, Hapag Lloyd, CSAV and Hamburg Süd, with its Brazilian subsidiary Alianca Navegacao e Logistica. A spokesman for Hamburg Süd said that the increases were needed because of "high port costs" in Brazil this year. After a first meeting with the shipping lines two weeks ago, Ciesp is holding a second meeting this week and the lines have postponed their “much-needed” rate restroration increase, “at least for the time being”.