Business
South Africa Takes On Shipping Cartel Over Alleged Price Fixing
A heavy freight bill may get lighter
Imagine importing furniture, electronics, or clothes from Asia and paying more than you should, all because shipping companies quietly agreed to raise prices in lockstep. That is exactly what the Competition Commission (CompCom) now claims happened over a decade on key trade routes to and from South Africa.
Late in 2025, CompCom referred eight of the world’s largest shipping lines to the Competition Tribunal. Among them are Maersk, Mediterranean Shipping Company (MSC), CMA CGM, Pacific International Lines, Mitsui O.S.K. Lines (MOL), Evergreen, COSCO Shipping Lines, and K Line Shipping. These carriers are accused of colluding to artificially inflate freight costs for goods shipped between South Africa and Asia and on routes connecting South Africa and West Africa.
What exactly did CompCom uncover
The alleged misconduct centres on something called a “General Rate Increase,” or GRI. That’s an across-the-board fee increase that shipping firms impose on cargo shipments. CompCom’s investigation, which began in 2016 after a customer complained, concluded that over the period 2008 to 2018, these carriers synchronised their GRIs so that they all charged the same rate hikes on the same trade lanes.
Routes most affected include shipments from Chinese ports such as Shanghai, Ningbo, and Shekou to Durban; from Durban to Hong Kong; and from Qingdao in China to Durban. CompCom says this identical pricing pattern wasn’t a coincidence. Alongside matching rates, it discovered documentary and electronic evidence suggesting deliberate coordination.
That kind of uniformity, regulators argue, isn’t simply business as usual, especially when competing firms all refuse discounts to the same customer.
Why South Africans should care
If the allegations hold up, the implications could be far-reaching. For ordinary consumers, inflated freight charges mean higher prices on imported goods, whether electronics, fashion items, or household products. For South African exporters, especially manufacturers and producers who rely on shipping to reach international markets, inflated shipping costs can erode competitiveness, affecting jobs and the trade balance.
CompCom believes dismantling the cartel would help reduce the cost of imports and make South African exports more price-competitive overseas.
It comes at a particularly challenging time for South Africa’s logistics sector. Ports like Durban and Ngqura are already beset by congestion, outdated infrastructure, and backlogs. Meanwhile, global disruptions, such as the rerouting of ships around the Cape of Good Hope after Red Sea instability, have driven shipping costs even higher. If these alleged price-fixing practices are proven, they could explain a fair chunk of the rising freight bills consumers have seen over recent years.
Why the case took so long
Cartel investigations are rarely quick. CompCom points out that these matters involve large volumes of documents and data spanning years, which must be carefully analysed. After the original complaint in 2016, the process included dawn raids, seizure of physical and electronic documents, and painstaking review of communications, pricing sheets, and emails.
The scale and complexity of global shipping networks, plus limited investigative resources, meant it took time to build a robust case. CompCom is now confident it has sufficient evidence to bring charges.
Could this be the tip of the iceberg?
What happened on South Asia trade routes might not be unique to them. CompCom itself suspects similar collusion could be happening in other parts of the world where these shipping giants operate. Global firms sometimes decide which jurisdictions to respect and which to ignore. South Africa’s case may set a precedent for other countries watching closely.
If the Tribunal finds against the shipping lines, affected businesses and importers might even be able to claim damages, offering a rare chance at reparations for inflated costs.
What happens next
The matter now moves before the Competition Tribunal. The shipping companies will have a chance to respond, typically filing answering affidavits, and then CompCom will reply. After pre-trial procedures such as discovery and witness statements, a hearing would follow. The penalties could be substantial, up to 10 percent of a firm’s annual turnover for first-time cartel offences, though proving such collusion in court remains a challenge.
For South Africa, the outcome is about more than shipping charges. It is about fairness in global trade, protection for consumers and businesses, and ensuring that logistics costs do not unfairly burden local industries.
Also read: South Africa’s Economy Shows Quiet Strength with Another Quarter of Growth in 2025
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Source: Business Tech
Featured Image: SABC News
