Image for representation purposes only
The United States has charged seven Chinese executives and four of the world’s biggest shipping container manufacturers with allegedly fixing prices and restricting the global supply of shipping containers during the COVID-19 pandemic.
The U.S. Department of Justice (DOJ) said the companies controlled about 95% of the world’s standard dry shipping container production and worked together between November 2019 and January 2024 to limit output and raise prices.
Prosecutors said the alleged conspiracy increased the cost of shipping containers during the global supply chain crisis, forcing businesses and consumers to pay more for goods shipped worldwide.
The companies named in the indictment are Hong Kong-listed Singamas Container Holdings Ltd., Chinese container manufacturing giant China International Marine Containers (Group) Co., Ltd. (CIMC), Shanghai Universal Logistics Equipment Co., Ltd., also known as Dong Fang International Containers, and CXIC Group Containers Co. Ltd..
The DOJ said executives from the companies met in Shenzhen in November 2019 and agreed to reduce production in order to increase container prices.
According to prosecutors, the companies limited production shifts and factory operating hours, agreed not to build new factories, and created a penalty system for companies that broke the agreement.
Investigators also alleged the companies installed 87 surveillance cameras across 49 production lines to make sure manufacturers followed the agreed production limits.
By September 2020, prosecutors said the alleged cartel expanded the arrangement to limit the number of containers supplied to specific customers, including major U.S.-based shipping lines, logistics companies and container leasing firms.
The DOJ said the conspiracy later evolved into production caps that remained in place until at least late 2023.
Prosecutors cited internal presentations allegedly showing “allowable quota” limits assigned to participating manufacturers and factories.
One executive, Vick Nam Hing Ma, a marketing director at Singamas, was arrested in France in April 2026 and is awaiting extradition to the United States. Six other executives remain at large.
Other executives charged include Siong Seng Teo, Boliang Mai, Tianhua Huang, Yongbo Wan, Qianmin Li and Yuqiang Zhang.
U.S. officials said the alleged cartel operated during one of the worst global shipping disruptions in recent history, when container shortages and port congestion disrupted trade routes and increased freight costs worldwide.
According to the indictment, CIMC’s container manufacturing profits rose from about $19.8 million in 2019 to around $1.75 billion in 2021.
Singamas also moved from a loss of about $110 million in 2019 to profits of around $186.8 million in 2021.
Associate Attorney General Stanley Woodward accused the companies of manipulating markets during the pandemic, while Acting Assistant Attorney General Omeed A. Assefi said the companies “held hostage the world’s supply of ocean shipping containers” during the global supply chain crisis.
The companies and executives were charged under the Sherman Antitrust Act, which carries a maximum sentence of 10 years in prison for individuals and fines of up to $100 million for companies.
Reference: US Department of Justice
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
Disclaimer :
The information on this website is for general purposes only. While efforts are made to ensure accuracy, we make no warranties of any kind regarding completeness, reliability, or suitability. Any reliance you place on such information is at your own risk. We are not liable for any loss or damage arising from the use of this website.
Source link
