Two multi-million pound settlements agreed in car shipping cartel claim

Two multi-million pound settlements have been agreed in principle in a long-running car shipping legal action.

More than 17 million cars are said to have been affected by the price fixing scheme, run by international shipping firms MOL, K Line, NYK, WWL/EUKOR and CSAV.

Those affected are consumers and businesses who bought new vehicles from many of the leading brands including Ford, Vauxhall, Volkswagen, Peugeot, BMW, Mercedes-Benz, Nissan, Toyota, Citroen and Renault, between October 2006 and September 2015.

Legal action followed the European Commission’s decision in 2018 to fine these shipping companies €395 million for fixed prices and rigged bids for roll-on, roll-off (RoRo) transport of vehicles.

The Commission found that the shippers had coordinated rates, allocated tenders, coordinated reductions of capacity in the market and exchanged commercially sensitive information to maintain or increase the price of intercontinental shipping of new vehicles.

Mark McLaren, class representative acting on behalf of UK consumers and businesses who purchased or leased new cars and vans between October 2006 and September 2015, has agreed settlements with WWL/EUKOR and “K” Line, two of the four remaining defendant shipping groups who made up the cartel.

McLaren has agreed a £24.5m in principle settlement with WWL/EUKOR and a £13.25m in principle settlement with “K” Line.

There will be hearing at the Competition Appeal Tribunal (CAT) tomorrow (Thursday, December 5) to seek approval for the settlements.

McLaren said: “These settlements are a major milestone in the claim and if approved, will secure significant compensation for the class. 

“I am looking forward to the settlement hearing during which we will demonstrate to the Tribunal why these in principle settlements are in the best interest of class members.  

“I have spent much of my career working in consumer protection and strongly believe in compensation for consumers and businesses harmed by unlawful conduct. It is encouraging to see that the UK opt out regime is facilitating this.”

CSAV proposed a settlement of £1.5m in October 2023, which was approved at a hearing at the CAT in December, last year. 

A trial will start on January 13, 2025, against the two remaining defendants MOL and NYK.

Belinda Hollway, partner and head of Scott+Scott London, said: “These in-principle settlements are a very positive development for class members and demonstrate the claim’s momentum ahead of the trial against the remaining defendants in January. 

“Scott+Scott is proud to be advising the class representative and this is an important achievement, not just for the claimants that Mark represents, but for the collective proceedings regime in the UK as a whole.”