LAHORE – Competition Commission Pakistan (CCP) officials have wrapped up an inquiry into allegations of collusive practices by shipping agents. The enquiry was authorised by CCP after receipt of information regarding possible price fixing in the industry. To gather information, a search and inspection of the premises of the Pakistan Ships Agents Association (PSAA) at Karachi was conducted on January 7, 2011.
The report observed that ship agents provide valuable services such as documentation, insurance, security and other services to importers and exporters at various sea ports. The report lists important evidence which shows that PSAA, after consulting members, routinely issues a recommended range of ancillary charges that are to be levied for the services provided by the ship agents.
The report states that recommending prices is beyond the mandate of an association and is, prima facie, in violation of Section 4 of the Competition Act 2010. The enquiry report has recommended that CCP initiate proceedings against PSAA and its members for prima facie violation of Section 4 of the Competition Act 2010. CCP will now review the report and take further action in light of the law.
