Shipping lines accused of collusion

The complaint arises from surcharges levied by the shipping lines on the fruit umbrella body during the recent Transnet strike.

Same surcharge

Stuart Symington, CEO of the Fresh Produce Exporters' Forum - a member of Fruit SA - says all the shipping lines announced the same surcharge (US$150) on each fruit container at the same time.

"This smacks of collusion," Symington says. "It appears they are all working together and behaving in an anticompetitive manner."

Agriculture, forestry & fisheries minister Tina Joemat-Pettersson estimates the crippling three-week strike by Transnet workers last month cost the agriculture sector more than R1bn.

Symington says the surcharge by the shipping lines cost the fruit industry about R12,5m/month and about R100m in total.

He says the ships were kept in bay and could not be loaded because of the strike.

"We believe Transnet, rather than the fruit exporters, should be liable for any charges incurred, but the shipping lines instead imposed the charges on us.

"Apparently the small print in the contracts seems to make the exporter liable," Symington says.

Damages

The fruit exporters have also suffered damages because contracts with foreign buyers could not be met and they were forced to downgrade fruit stored for too long.

"Growers were forced to leave fruit on the trees because it could not be exported," Symington says.

The competition commission confirms that a charge involving the "imposition of a congestion recovery surcharge" had been submitted by Fruit SA.

Shipping lines involved are Mediterranean Shipping Company, Safmarine, Maersk, Pacific International, CSAV SA, DAL Deutsche SA, MISC Berhad and Mitsui OSK Lines.

Maersk spokesman Fred Jacobs said the company had no knowledge of the complaint and had not been informed by the commission.

Source: Financial Mail