Freight Charge Investigation

A collection of companies involved in the importation of goods from North East Asia to Australia by ship, known as the Asia Australia Discussion Agreement (AADA), are being investigated by the Australian Competition and Consumer Commission after several increases in international freight charges.

Price increases have been announced by the AADA for July, August and October which adds up to be an increase of 100 per cent over the market rates that existed in June. The implementation of these price increases could mean bad news for Australian businesses who import goods from China, Hong Kong and Taiwan, making freight costs significantly higher.

Although Part X of the Trade Practices Act 1974 (Cth) does allow for special exemptions from several anti-competitive laws for international liner cargo companies, the ACCC still has a responsibility to investigate such situations.

The ACCC will conduct a public investigation after receiving a number of complaints from importers, freight forwarders and business associates. If it is found that the AADA's price increases are in fact unreasonable, it can then be recommended to the Minister for Transport and Regional Services that the AADA be deregistered.