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