Parcel Tanker Shipping
|Parcel Tanker Shipping|
|Overall Cartel Period||1998-2002|
|Participants||Odfjell Seachem AS; Jo Tankers BV; Stolt-Nielsen|
|Total Fines (DOJ)||$62.3 million|
|Total Fines (EC)||No fines imposed|
In 2003, the U.S. Department of Justice (“DOJ”) launched probes into companies operating in the parcel tanker shipping industry, which includes the transportation by sea of bulk chemicals, edible oils, acids and other specialty liquids by sea. When parcel tanker companies transport bulk liquids from one port to another, they sign “contracts of affreightment” with customers, which typically cover multiple shipments and specify the price, cargo destinations, and other terms and conditions. According to the DOJ, between August 1998 and November 2002, three companies participated in a cartel to allocate customers and limit competition for contracts of affreightment.
- The DOJ imposed fines totaling $62 million on two of the three cartel members.
- In March 2004, the DOJ revoked the conditional leniency previously granted to the third cartel member, Stolt-Nielsen. But, after three years of litigation in the federal courts, a federal court reinstated Stolt-Nielsen's amnesty. The DOJ decided not to pursue further legal action against the company after the ruling.
|Individual||Company||Prison Sentence||Fine (USD)||Plea Date||Plea Agreement|
|Erik Nilsen, Vice President||Odfjell Seachem AS||3 months||$25,000||10/24/2003||
|Bjorn Sjaastad, CEO||Odfjell Seachem AS||4 months||$250,000||10/24/2003||
|Hendrikus van Westenbrugge, Co-Managing Director||Jo Tankers BV||3 months||$75,000||01/08/2004|
|Samuel Cooperman, Chairman||Stolt-Nielsen||Immunity|
|Richard Wingfield, Managing Director of Tanker Trading||Stolt-Nielsen||Immunity|