EU declares ferry firms fixed prices
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by Karen Miles • The prospect of hundreds of hauliers suing the major ferry companies came closer this week as the European Commission accused five ferry operators of breaking community law by fixing freight rates.
In a formal statement of objection from the Commission—the EU body responsible for policing Community competition lawP&O, Stena Sealink, North Sea Ferries, the French company SNAT and Brittany Ferries and its freight subsidiary Truckline are accused of working together illegally in November 1992 when they imposed a 10% freight surcharge. It followed a devaluation of the pound.
If found guilty the ferries could be fined millions of pounds—up to 10% of their turnover—and hauliers will be free to pursue compensation claims through UK courts. Operators this week welcomed the Commission's move. The Road Haulage Association's international group chairman and managing director of Ipswich-based Capel Express, Geoffrey Simms says: "I'm pleased that someone as powerful as the European Union has finally got its teeth into the matter. While we could never prove it, we felt something was going on among the ferries."
Stena Sealink was the first company to bring in the surcharge and the Freight Transport Association complained to the Commission when the other ferry companies followed suit.
The Commission raided premises for evidence of collusion on the size of the increase and its timing. Sally Line, Olau Line and Tor Line have been cleared of any complicity.
The Commission was unavailable for comment. It is the first time it has taken anti-competitive action against the ferries. The companies can ask for a Commission hearing to defend themselves or can wait for a final verdict and probable fines. They can appeal against the decision and only if the matter is eventually settled against the ferry companies will hauliers be able to ask for compensation.
P&O said this week it would be responding to the Commission and North Sea Ferries said it was studying its options; Stena Sealink and SNAT had not yet received the statement of objection; and Brittany Ferries and Truckline were unavailable for comment.