UPDATE
Puerto rico trade antitrust case goes on
JapaN’s first hyBriD tuG enters into service Japan’s first hybrid tug, the Tsubasa, has entered into service for the NYK Group. Developed and manufactured with support from ClassNK, the tug is equipped with a motor generator, high-performance batteries and conventional diesel engines. Depending on what power is needed, the tug can operate solely on its diesel engines or electric-motors, making it fuel efficient and lowering CO2 emission. CO2 emissions are expected to drop by 20% in port. The tug is performing ship assist towing operations at the Port of Yokohama and Kawasaki.
LeSt you Forget about the Puerto Rico trade antitrust case, the Department of Justice served the world a reminder that it is still very much ongoing. Last month, a federal grand jury in San Juan, Puerto Rico, indicted former Crowley Liner Services executive, Thomas Farmer. The Department of Justice says, Farmer stands accused of participating in a conspiracy to fix rates and surcharges for freight transported by water between the continental U.S. and Puerto Rico. Farmer, who is the former VP of Price and Yield Management at Crowley, was charged with conspiring with co-conspirators to suppress and eliminate competition by agreeing to fix rates and surcharges for Puerto Rico freight service between as early as mid-2005 until at least April 2008. According to the allegations, Farmer violated the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The indictment alleges that Farmer and co-conspirators at tended meetings and engaged in conversations and
communications to: stabilize and maintain rates and surcharge for Puerto Rico freight services; to allocate customers of Puerto Rico freight services between and among the conspirators; and to rig bids submitted to customers of Puerto Rico freight services. At the time of the indictment, Bill Baer, Assistant Attorney General, Department of Justice, Antitrust Division, said, “the division will continue to vigorously pursue individuals who engage in anticompetitive behavior.” The ongoing investigation into price fixing, bid rigging and other anti-competitive conduct in coast water freight transportation industry has resulted in three companies—Crowley, Horizon Lines LLC and Star Line LLC—and six individuals pleading guilty and being convicted at trial. All parties, except for one individual —Frank Peake, who awaits sentencing this May 2013—have been ordered to serve sentences ranging from seven months to four years in prison and to pay more than $46 million in criminal fines.
Don’t Navigate Your Finances Alone. With $28 billion in assets, experienced maritime bankers and the capacity to lend, BOK Financial has the resources you need to help navigate your finances. We offer competitive structures and terms to meet your growing capital needs. As a trusted name in marine financing and a committed partner to the maritime industry, let us chart you a course for success. Give us a call, or better yet, let us come see you.
Vessel Financing | Lines of Credit | Leasing Real Estate & Terminal Expansion 832.803.0843 | www.bokfinancial.com/marinefinance
© 2013 Services provided by Bank of Albuquerque, Bank of Arizona, Bank of Arkansas, Bank of Kansas City, Bank of Oklahoma, Bank of Texas, Colorado State Bank and Trust, divisions of BOKF, NA. Member FDIC. Equal Housing Lender
14 MARINE LOG April 2013