Jail Forwarder Price Fixers
While the price fixing investigation
of fuel and security surcharges to forwarders from their "partners,"
the world's airlines, strongly indicates that the big consolidators are
either wholly forgiven the amounts charged or are heavily discounted,
small and mid-sized forwarders must pay the surcharges in full.
Julian Keeling, President & CEO at Consolidators
International (CII), the Los Angeles-based wholesaler, doesn’t like
that deal one bit.
In fact the outspoken Keeling is calling
for heavy fines and even jail terms for the most egregious offenders.
"Fines levied against a few airlines
are not sufficient," stated Keeling.
"Doing time in prison by the executives
involved is the only effective remedy to stop this nefarious collusion
between airlines and the big, international forwarders.
“We're not talking pennies but millions
of dollars in unfair, illegal subsidies to those forwarders who most easily
can afford to pay the full costs."
An industry source Air Cargo News/FlyingTypers
spoke to told us:: “I do auditing for some large shippers who in
fact have no idea about charges.
“In this atmosphere there is plenty
of room for transportation to set rates any way they please.
“Europe and USA flags set fuel and
shipping based on actual weight.
But at the same time it is common practice
of some forwarders to base the rate on a shipment.
“A shipment often cubes out before
weighing out, with some forwarders pocketing the difference.
“I saved one company over $180,000
in overcharges connected to volumetric prices.
“It’s not surprising that investigators,
while looking for other things might miss these overcharges to the shipping
public.
“Rates are often quoted in one currency
and billed in another currency.
“Some shippers in our audits were
quoted in dollars, but ended up paying in Euro value where one to one
in today’s currency exchange just doesn’t work.”
Keeling is calling for the opening of forwarder
and airline books by CASS, the official cargo collection agency for the
world's carriers.
"Their records would show clearly what
the real facts are," he stated.
The CII executive chastised CNS, the cargo
arm of the airlines' trade association, IATA, "for being tight-lipped
about the situation and, in effect, protecting the big forwarders who
sit side by side on CNS' advisory panel with the airlines.
“CNS is acting in typical trade association
fashion; refusing to take a stand when the facts clearly warrant strong,
decisive action.
"We have to clean house," affirmed
Keeling.
"This latest example of hypocrisy by
the airlines in bewailing supposed onerous fuel and security costs while
turning around and rebating either all or most of these costs to a few,
preferred customers, must come to a halt. Ironically, it is the carriers'
largest customers who most easily can afford the surcharges while the
smaller forwarder who often cannot, must pay the full rate.
"Let's hope the authorities in Europe
and the U.S. get to the bottom of this mess and prosecute accordingly,"
concluded Keeling.
Shura Bary/Geoffrey
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