Thursday, September 30, 2010

Major Freight Forwarder Pleads Guilty To Cartel Air Cargo Scandal

Kuehne and Nagel Pay Out Almost $10 million Fine
Shipping News Feature

US – Kuehne and Nagel, one of the world’s foremost freight forwarding groups tell us tonight they have entered into a plea agreement with the U.S. Department of Justice to resolve allegations that they colluded with other international freight forwarders with whom they coordinated their activities with respect to establishing certain surcharges for international freight forwarding services to the United States.

Under the agreement, Kuehne + Nagel will plead guilty to violations of the U.S. Sherman Act relating to the conduct of five of its subsidiaries in establishing certain surcharges for international air freight forwarding services and will agree to pay a fine of approx. USD 9.865 million. The logistics and shipping group tell us that the plea agreement closes DOJ’s investigation of Kuehne + Nagel and its subsidiaries regarding international air freight forwarding services. The plea agreement remains subject to court approval.

As reported previously, DOJ and other competition authorities began investigations of international freight forwarding services in 2007. Kuehne and Nagel reiterates at this occasion that it is continuing to cooperate with anti-trust authorities with ongoing investigations.

Karl Gernandt, Executive Vice Chairman of the Board of Kuehne and Nagel International AG released a statement tonight saying:

“Kuehne + Nagel has cooperated intensively with the DOJ throughout the investigation. Kuehne + Nagel takes its obligation and commitment to abide by all laws including the anti-trust laws very seriously. Kuehne and Nagel has reviewed and reinforced its anti-trust compliance program, to always ensure compliance with the highest available standards.”