The Competition Commission has accused eight major global shipping lines of operating a decade-long price-fixing cartel that allegedly pushed up the cost of moving goods in and out of South Africa.
The commission alleges that the companies ― Maersk South Africa, Mediterranean Shipping Company (MSC), CMA-CGM Shipping Agencies South Africa, Pacific International Lines South Africa, Mitsui OSK Lines South Africa, Evergreen Agency South Africa, Cosco and K Line Shipping South Africa ― collectively fixed a shipping charge known as the general rate increase (GRI) on routes between South Africa and Asia, as well as between South Africa and West Africa in 2008-18.
The companies are accused of co-ordinating the timing and level of GRIs, resulting in identical rate increases for customers across multiple routes.
“The Competition Commission has referred a complaint against eight cargo shipping companies to the Competition Tribunal for prosecution,” it said.
“The respondents are global container shipping liners involved in shipping cargo for import and export purposes across the globe, including South Africa.”
Investigators found evidence that the shipping lines charged the same GRIs on routes linking Durban with Shanghai, Ningbo, Shekou, Hong Kong and Qingdao. This conduct, according to the commission, contravened a section) of the Competition Act, which prohibits price-fixing.
Commissioner Doris Tshepe said dismantling the alleged cartel would lower import costs for consumers and improve the competitiveness of South African exports.
“The dismantling of the cartel will reduce the price of goods imported to South Africa for the benefit of consumers and will also reduce the costs of exports out of South Africa, which will, in turn, render South African exports competitive in the world markets,” she said.
The referral comes at a time when the country’s shipping and logistics systems are already under pressure. According to freight forwarding company Turners Shipping, the country’s shipping and logistics industry has entered one of its most turbulent periods in years, as a combination of global conflict, economic shocks and local infrastructure failures push freight costs higher and strain supply chains across the country.
Turners Shipping’s South Africa business development & transformation manager, Gregory Marks, said the pressure intensified after the US imposed a 31% tariff on South African imports. The move triggered a rush to move goods before higher costs took effect, contributing to soaring freight rates, vessel delays and overcrowded warehouses.
At the same time, attacks in the Red Sea have forced ships to reroute around the Cape of Good Hope, adding up to 10 days to transit times and increasing costs on Asia-South Africa routes by up to 45% for larger containers.
Locally, ports are struggling to absorb the extra traffic. Marks said Durban and Ngqura, already hampered by congestion, equipment shortages and maintenance backlogs, are facing longer queues and growing vessel bypasses as carriers try to recover lost time. Inland, warehousing space is stretched, road networks are under pressure and power cuts continue to disrupt storage and handling operations.
Air freight has become a critical alternative, particularly for perishable and high-value goods, but limited flight capacity and volatile fuel prices have pushed rates up by as much as 30%. Many importers and exporters are now adopting hybrid strategies, shifting cargo through smaller regional ports or using air–sea combinations to avoid the worst bottlenecks.
“At Turners Shipping, we’ve been preparing for this kind of disruption since 2018. With more than 125 years of freight forwarding expertise, our strategy is as much about anticipating change as reacting to it,” he said.
According to Marks, industry forecasts suggest that freight rates may stabilise towards the end of 2025 though they are expected to remain higher than before the pandemic.
Continued instability in the Red Sea means vessels are likely to continue routing around the Cape, placing strain on South African ports. Uncertainty about the African Growth & Opportunity Act, the continent-wide African Continental Free Trade Area arrangement, and rising demands for digital visibility and cleaner shipping further complicate the outlook.
The maximum penalty the Competition Tribunal can impose is 10% of a firm’s annual turnover. If the firms are found guilty of price fixing, the affected parties can claim damages.
The commission explained the process, saying after it has filed the referral affidavit, “the respondent firms have 20 days to file their answering affidavits. The commission will then file its replying affidavit, then the pleadings are closed. Pre-trial steps, including discovery and filing of witness statements, will follow. And then trial. It takes some time to complete all the stages of litigation before the actual hearing takes place.”
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