Four Takeaways From The Ongoing Air Cargo Price-Fixing Litigation

Nippon Cargo Airlines Co. Ltd last week agreed to pay $36.55 million to settle claims that it conspired with other airlines to fix rates for air cargo services in the early 2000s. Two dozen airlines have settled in the long-running multi-district litigation (MDL), bringing the settlement fund to more than $900 million.

The case commenced in 2006, when consumers of air cargo services brought more than 90 law suits against dozens of air cargo carriers. These cases were later consolidated in the Eastern District of New York MDL titled In re: Air Cargo Shipping Services Antitrust Litigation.

The MDL concerns claims that air cargo carriers agreed in secret meetings, conversations, and other communications on cargo rates to and from the United States. The conspirators allegedly carried out the conspiracy by enforcing the agreed-upon rates and engaging in subsequent communications to monitor enforcement.