4 warehouse operators suspected of price fixing
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Four warehouse operators at Keppel Distripark have been issued a proposed infringement decision for price-fixing by the Competition and Consumer Commission of Singapore (CCCS).
The competition watchdog yesterday said its investigations found the operators had colluded to implement an identically named and priced surcharge for warehousing services, in breach of the Competition Act.
The four are CNL Logistic Solutions, Gilmon Transportation & Warehousing, Mac-Nels (KD) Terminal and Penanshin (PSA KD).
The CCCS started its investigations in August 2018 following a complaint about possible price fixing at Keppel Distripark, a cargo distribution complex in Kampong Bahru Road.
It found that between June 15 and 16 of 2017, the operators had discussed their respective plans to implement an identically named and priced "FTZ Surcharge" for the warehousing of import cargo.
The companies applied this pricing in their operations from June 2017 to November 2019. They colluded to avoid the risks of competitive pricing, the commission said.
The CCCS said it considers the price fixing to be "by its very nature, harmful to competition".
It added: "Businesses should independently determine their prices or pricing strategies, including whether to impose any surcharge and the quantum of such surcharge."
The four companies have six weeks to make a formal response and provide any other information for the CCCS' consideration before it makes its decision.
This includes operators that choose to provide information about the cartel's activities in exchange for immunity or a reduction in financial penalties under CCCS' leniency programme.
