NYK Line has launched an internal investigation into possible illicit financial practices at its Shanghai-based subsidiary NYK Car Carrier (China) co Ltd.
According to the Tokyo-headquartered shipping line, enquiries are centred on the “the former locally-hired management team” and relate to unlawful expenditures and embezzlements. NYK Car Carrier (China) is engaged in the finished automobile logistics business and transports cars into and out of the country.
Initial investigations by NYK suggests that management practices at the China group could result in a charge of JYN2B (US$19M) having to be made against the company’s end of year results.
Tadaaki Naito, president, representative director and presidential corporate officer, has been appointed as the chairman of the investigative commission, with Yoshiyuki Yoshida, director, chief compliance officer and managing corporate officer, Yutaka Higurashi, corporate officer, and Yuichi Sakata, an attorney at Abe & Sakata Legal Professional Corporation, supporting him.
This is the latest incident in a catalogue of illicit freight pricing and anti-competitive scheduling and capacity practices that have affected NYK and the car carrying sector in general in recent years. And further penalties are about to be issued with anti-trust regulators in Europe about to fine several operators, including NYK for rigging prices on car shipment contracts.