What's Happening?
Japanese shipping companies NYK and Mitsui OSK have agreed to settle a long-standing UK case alleging that they participated in a cartel to fix prices for vehicle shipping contracts. The case, initiated as a class action on behalf of car buyers, accused the companies of colluding to set global shipping prices, affecting 17 million new vehicles between 2006 and 2015. The settlement, which amounts to £54 million ($72.3 million), comes without any admission of liability. This case is part of a broader series of legal actions against these companies, including a significant fine by the European Union in 2018 for similar activities. The UK’s Competition Appeal Tribunal will review the settlement in January 2026.
Why It's Important?
This settlement is a landmark in the
UK as it represents the first time damages will be distributed to businesses under the opt-out regime, setting a precedent for future class actions. The resolution of this case provides significant compensation to consumers and businesses that paid inflated shipping fees due to the cartel's activities. For NYK and Mitsui OSK, settling the case allows them to avoid further legal costs and potential reputational damage. The case highlights the ongoing global scrutiny of anti-competitive practices in the shipping industry, which could lead to more stringent regulations and oversight.
What's Next?
The UK’s Competition Appeal Tribunal is scheduled to convene on January 15, 2026, to consider and approve the settlement. If approved, the settlement will conclude the litigation, providing financial restitution to affected consumers and businesses. This case may encourage other jurisdictions to pursue similar actions against shipping companies, potentially leading to further settlements or regulatory changes. Companies involved in global shipping may need to reassess their pricing strategies and compliance measures to avoid future legal challenges.
