International Trade and Customs

Debarment of Several Major Freight Forwarders May Disrupt International Sales

By: Jahna M. Hartwig
Williams Mullen (North Carolina and Virginia, USA)

The General Services Administration (GSA) added several freight forwarding companies to its Excluded Parties List System on February 16, 2012.  BAX Global Inc.,

Kuhne and Nagel International AG, Panalpina Welttransport (Holding) AG, Panalpina, Inc., and Schenker AG were debarred from Federal contracting based on their recent plea agreements on charges that they engaged in conspiracies to fix fees in connection with international air cargo shipment services.[1]  The companies were charged with carrying out various price-fixing conspiracies “by, among other things, agreeing during meetings and discussions to coordinate various charges and fees on customers purchasing international freight forwarding services for cargo freight destined for air shipment to the United States.”[2]  As a result of the debarments, those companies are ineligible to receive contracts from Federal agencies and may also be ineligible to act as subcontractors to Government prime contractors, absent a compelling reason to allow the contract. Click here to read entire article.

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