US shipping company Horizon Lines has confirmed that officers from the US Department of Justice's antitrust division have raided its head office in Charlotte, North Carolina on suspicion that the company engaged in illegal pricing infractions.
An announcement published in Lloyd's List from Matson Navigation parent Alexander & Baldwin indicated the probe might be extended to include Hawaii, where Matson is active. Alexander & Baldwin said it was preparing to receive a Department of Justice subpoena related to "domestic ocean carriage."
Furthermore, Sea Star Lines and Crowley Liner Services, two other shipping companies serving the Puerto Rico trade, have also confirmed that they were in the hot seat. Both these two firms and Matson said they were fully cooperating with the investigation launched by antitrust officials.
Horizon Lines said in a statement that federal agents had on April 17 served search warrants and a grand jury subpoena relating to an investigation of the pricing practices of ocean carriers operating in the Puerto Rico trade.
Sources cited in a Lloyd's List report said the federal agents seized computers and boxes from Horizon Line's head office and that its Puerto Rico office was also visited by the antitrust officers.
The US domestic ocean shipping and integrated logistics company said it had not been informed of the specific subject matter of the inquiry that was being conducted, but claimed to be cooperating fully with the US government officials, adding that the probe was not expected to impact its services.
The report said subpoenas have been served on at least three other shipping companies. They are all engaged in the Jones Act liner services in the US, with the Puerto Rico trade lane featuring prominently in the investigation.
Horizon Lines was said to be heading the list of companies under investigation by the US Department of Justice's antitrust division for suspected pricing infractions. It is active in all major Jones Act liner lanes, including Puerto Rico, Hawaii and Alaska.
Horizon has a 34.6 per cent market share of the Puerto Rico trade, followed by Crowley with 30.6 per cent, Sea Star with 20.8 per cent and Trailer Bridge with 14 per cent. The report noted that competition between these four players on the trade has been stiff over the past year.
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