The US Justice Department has filed charges against four major shipping container manufacturers and seven executives for an alleged global conspiracy to manipulate supply and prices amid the Covid-19 pandemic. The conspiracy, which ran from November 2019 to January 2024, aimed to restrict production and inflate prices of standard dry shipping containers crucial for global trade.
Among the companies implicated are Singamas Container Holdings Ltd., China International Marine Containers (CIMC), Shanghai Universal Logistics Equipment Co. Ltd. operating under the Dong Fang brand, and CXIC Group Containers Co. Ltd. The scheme reportedly led to a significant price hike in containers between 2019 and 2021, with soaring profits for the companies during the pandemic-induced global supply chain crisis.
One of the executives, Vick Nam Hing Ma from Singamas, was apprehended in France on April 14, with US authorities pursuing his extradition while six others remain at large. Prosecutors revealed that the executives convened in Shenzhen in November 2019 to strategize on elevating shipping container prices, agreeing to curtail production shifts, factory hours, and abstain from constructing new facilities.
The indictment further disclosed that the companies installed surveillance cameras across production lines to enforce compliance with the agreement and established penalties for violators. The conspiracy reportedly expanded to include production restrictions for specific customers, encompassing US-based shipping lines, container lessors, and logistics companies, with agreements to cap cargo volume production from September 2022 to November 2023.
Acting Assistant Attorney General Omeed A. Assefi condemned the global price-fixing cartels, emphasizing the severe impact on economic freedom during the pandemic. Associate Attorney General Stanley Woodward underscored the department’s focus on holding accountable those who exploit markets for gains during a global crisis. The accused individuals are facing charges under the Sherman Antitrust Act, with potential prison sentences of up to 10 years for individuals and fines exceeding $100 million for companies.
