US fines Japanese forwarder US$2.3 million in probe into air cargo cartel

THE United States Department of Justice (DOJ) has indicted Japanese forwarder Yamato Global Logistics Japan Co Ltd in its ongoing investigation into price fixing on air freight shipments from Japan to the US from September 2002 until November 2007.

The Japanese forwarder was one of 14 companies in Japan charged by the DOJ with price fixing and as part of a plea deal, Yamato Global Logistics Japan will pay a fine of US$2.3 million for conspiring to fix fees.

According to Scott Hammond, deputy assistant attorney general for the Antitrust Division's criminal enforcement programme, the companies didn't just violate the Sherman Act but also impeded US commerce, reported Atlanta-area Air Cargo World.

"Consumers ultimately were forced to pay higher prices on the goods they buy every day as a result of the non-competitive and collusive service fees charged by these companies," Mr Hammond said in a statement.

The DOJ has made more than $100 million in criminal fines since it launched its price fixing investigation in early 2006. Last year, the department slapped six other Japanese freight forwarders with fees totalling $46.8 million for their participation in an air freight cartel.

The DOJ hasn't been the only government agency doling out fines for price fixing, however. In June, the High Court of New Zealand ordered Japan Airlines to pay NZD2.28 million (US$1.9 million) for participating in an air freight cartel. One month later, Korean Air became the latest carrier to settle with Canada's Competition Bureau for conspiring to fix cargo surcharges from April 2002 to February 2006.