The ACCC will investigate a series of price increases announced by companies carrying cargo by ship from North East Asia to Australia. These companies operate as the Asia Australia Discussion Agreement (AADA).
Price increases announced for July, August and October suggest increases of 100 per cent over market rates that existed in June.
“If implemented, these price increases could represent a substantial hike in costs to Australian businesses importing goods from China, Hong Kong and Taiwan”, ACCC Chairman Graeme Samuel said today.
“While Part X of the Trade Practices Act allows international liner cargo operators a special exemption from several laws that prohibit anti-competitive conduct, the ACCC has a responsibility to investigate situations where that special treatment may have been used to unreasonably raise prices.”
“In commencing this investigation the ACCC is responding to numerous complaints received from importers, freight forwarders and business associations. The ACCC will conduct its investigation publicly so that all interested parties, including the AADA, will have an opportunity to put across their point of view.”
“If the ACCC finds the actions of the AADA to be unreasonable then it can recommend to the Minister for Transport and Regional Services that the AADA be deregistered. Deregistration could expose future activities of the AADA members to all of the prohibitions on anti-competitive conduct contained in the Trade Practices Act.”
The ACCC understands that the current membership of the AADA comprises the following shipping lines:
- ANL Container Line Pty Limited (ANLCL)
- China Shipping Container Lines Co Ltd (CSCL)
- COSCO
- FESCO
- Evergreen Marine Corporation
- Hamburg Sudamerikanische Dampschiffahrts – Gesellschaft KG (Columbus Line)
- Hanjin Shipping Co Ltd
- Hyundai Merchant Marine, Seoul (HMM)
- Kawasaki Kisen Kaisha Ltd (K Line)
- Maersk Sealand
- Mitsui OSK Lines Ltd (MOL)
- MSC Mediterranean Shipping Company S.A.
- NYK Line
- Orient Overseas Container Line Ltd (OOCL)
- P&O Swire Containers Ltd
- Zim Israel Navigation Co Ltd
The ACCC will be releasing an issues paper in due course before the end of the year to which interested parties can make submissions and comment.