TACA firms get huge fine

Date: 17/09/1998

By Chris Johnstone

SOME of the world's biggest shipping companies have been stung by an all-time record fine from the European Commission for fixing prices and sharing the market for transporting goods between the EU and US.

Fines totalling 273 million ecu were imposed on 15 container shipping firms this week, with the Commission warning that further penalties could be in the pipeline for collusion on the prices charged for transporting cargoes across land to their final destination.

Anglo-Dutch shipping firm P&O Nedlloyd was targeted for the biggest punishment, with a fine of 41.26 million ecu. Denmark's Maersk, Germany's Hapag Lloyd and DSR, Sweden's ACL and Poland's Pol face smaller penalties.

Shipping companies in the Trans-Atlantic Conference Agreement (TACA) shared a 60&percent; share of the EU-US market. The Commission launched its investigation after complaints from some European exporters that they were being priced out of markets without having anywhere else to turn.

The TACA alliance criticised the Commission decision and promised an immediate appeal to the European Court of Justice to try to get it suspended and reversed. “The TACA lines have received firm legal advice that the decision will be overturned on appeal,” it said.