Japanese shipping companies Nippon Yusen Kabushiki Kaisha (NYK) and Kawasaki Kisen Kaisha, Ltd. ("K" Line) were respectively fined $1.5 million and $460,000 by the Ontario Superior Court today for their role in an international conspiracy that reduced competition for the shipment of vehicles to Canada.
NYK and "K" Line both pleaded guilty to one count of conspiracy under the Competition Act. The companies admitted to agreeing with certain suppliers to increase the base freight rates they proposed to certain vehicle manufacturers in Japan for the supply of "roll-on/roll-off" services for shipments to Canada, in relation to fiscal year 2008 contract negotiations.
In addition, "K" Line pleaded guilty to one count of bid-rigging under the Competition Act. The company admitted to entering into a bid-rigging agreement for a General Motors Company tender for "roll-on/roll-off" shipping services, including routes from South Korea to Canada, for contracts covering the period of 2011 to 2012.
The companies received leniency in sentencing for their cooperation with the Competition Bureau's investigation.
