Swiss fine freight groups for price cartel

The Swiss competition authority, Weko, has fined four leading freight and transport companies – Panalpina Welttransport, Kühne + Nagel International, Deutsche Bahn AG/Schenker and Agility Logistics International – for taking part in an air freight price cartel.

The fines levied come to a total of SFr6.2m. Panalpina will pay a fine of SFr3.1m, while Kühne + Nagel must pay SFr1.17m. Deutsche Bahn/Schenker and Agility Logistics received reductions in their fines for co-operating with the authorities, and will pay SFr1m and SFr0.9m respectively.

The move by the Swiss authorities comes in the wake of far heavier fines levied by the European Commission in March on several logistics companies following its own investigation into the cartel, which was co-ordinated through meetings at an Italian restaurant near London

As a result of the EU’s probe, Basel-based Panalpina was fined €46.5m, while its Swiss peer Kühne + Nagel was ordered to pay €53.7m. The US Department of Justice has also investigated the cartel.

The Swiss investigation began in 2007 after Deutsche Post, which was also involved in the cartel, reported itself to Weko – a move for which the German company was exempted from any fines relating to the affair.

Weko found that between 2003 and 2007, the cartel members co-ordinated fees and surcharges for international air freight customers. “Such horizontal price-fixing agreements are a serious infringement of . . . cartel law,” Weko said in a statement.

A spokesman for Panalpina said “The case has ended as we expected and the fine levied today is in line with what we agreed with Weko in March.”

A spokeswoman for Kühne + Nagel said “We consider the fine as high, but finally we will (subject to a final review of its rationale) probably accept it as this will enable us to close this chapter of the past.”

Deutsche Bahn/Schenker declined to comment, while Agility Logistics did not respond to requests for comment.