Tribunal approves settlements for car shipping cartel claim

Two multi-million pound settlements have been approved by the Competition Appeal Tribunal 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.

The Competition Appeal Tribunal has now approved a £24.5m settlement with WWL/EUKOR and a £13.25m a settlement with “K” Line, previously agreed by McLaren.

He said: “We are thrilled that the Tribunal has approved these two settlements, underscoring that they are in the best interests of the class members that I represent.

“I have spent much of my career working in consumer protection and feel strongly that consumers and businesses harmed by unlawful conduct should be compensated.  

“Achieving these two further settlements brings the total compensation for UK businesses and consumers affected by the shipping cartel to nearly £40m.”

Belinda Hollway, partner and head of Scott+Scott London, added: “The approval of these settlements is a very positive development for class members and demonstrate the claim’s momentum ahead of the nine week trial against the remaining two defendants in January. Scott+Scott is proud to be advising the class representative and this is an important achievement for the claimants that Mark represents, providing access to justice and securing redress to victims of the cartel.”

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.