High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
WASHINGTON, June 25 (Reuters) – Two executives of a freight forwarding company have been sentenced to prison for fixing the prices of freight forwarding services, the Justice Department said on Tuesday.
Roberto Dip was sentenced to 18 months while Jason Handal was sentenced to 15 months for fixing the prices of freight forwarding from about 2010 to 2015, the department said. Freight forwarders organize shipments and contract with carriers to get goods from one point to another.
Dip is president and CEO of Dip Shipping Co and Handal is a sales manager.
“These defendants’ conduct raised freight-forwarding prices by as much (as) 20 percent, victimizing vulnerable consumers and individuals sending gifts and household goods to family members,” said Makan Delrahim, head of the Justice Department’s Antitrust Division, in a statement.
Joel Denaro, who represented Dip, said: “Mr. Dip is very remorseful. He accepted full responsibility for his actions and hopes in the future that his sentence will be reduced.
A lawyer for Handal did not immediately respond to a request for comment. (Reporting by Diane Bartz; Editing by Sandra Maler)
(c) Copyright Thomson Reuters 2019.
Join the 67,504 members that receive our newsletter.
Have a news tip? Let us know.