Seven shipping companies operating in Mexico have been fined for causing a rise in prices after colluding on routes in the auto transport services market. The companies conducted monopolistic practices, by agreeing and executing agreements to segment the market for motor vehicle shipping services, according to the Federal Commission of Economic Competition of Mexico (COFECE).
The companies fined are South American Vapor Company (CSAV), Kawasaki Kisen Kaisha (K-Line), K Line America, Mitsui OSK Lines (MOL), Mitsui OSK Bulk Shipping (MOBUSA), Nippon Yusen Kabushiki Kaisha (NYK) and Wallenius Wilhlmsen Logistics (WWL). The fines imposed are totaling 581.660.000 pesos.
As COFECE denounced, the companies colluded by assigning transport routes to specific shippers between five Mexican ports and Argentina, Brazil, Chile, Japan, Thailand, Indonesia, and Belgium, in order to segment the maritime transport market for motor vehicles and rolling stock for construction and agriculture in the national territory. This reduced the competitive pressure and increased the costs of services provided to companies in the automotive sector.
“The automotive industry is one of the most important sectors of the economy for our country, both for its growth and for attracting foreign direct investment. Mexico is the seventh largest producer in the world and the fourth exporter of automobiles” said COFECE.