Photo: Andrew Harnik / Getty Images News / Getty Images
The U.S. Department of Justice (DOJ) has charged seven Chinese executives and four major shipping container companies with conspiring to manipulate the supply and pricing of shipping containers during the COVID-19 pandemic. On Tuesday (May 19), DOJ officials announced the charges, alleging that the companies restricted the output of containers and raised prices, resulting in U.S. consumers paying more and facing longer wait times for products.
According to the DOJ, these companies manufacture approximately 95% of the world's standard dry shipping containers. The alleged conspiracy took place between November 2019 and January 2024, during which time the companies reportedly limited production by reducing shifts and hours and refrained from building new manufacturing facilities. This scheme purportedly led to a doubling of container prices and significantly increased profits for the manufacturers.
One of the executives charged, Vick Ma, a marketing director at Singamas Container Holdings Ltd, was arrested in France in April and is awaiting extradition to the U.S. The other six executives remain at large. The DOJ has stated that this case highlights the need to protect consumers from global price-fixing cartels, which can exploit crises for profit.
Associate Attorney General Stanley Woodward emphasized the DOJ's commitment to holding accountable those who exploit Americans for ill-gotten gains. "Global price-fixing cartels strike at the heart of our economic liberty," he said. Acting Assistant Attorney General Omeed A. Assefi added that the DOJ's Antitrust Division is dedicated to protecting consumers and ensuring that those who manipulate markets face justice.
The DOJ's actions are part of a broader effort to address anticompetitive practices and safeguard the supply chain. The case is being handled by the U.S. District Court for the Northern District of California, with the support of various law enforcement partners, including the FBI and the U.S. Postal Service Office of Inspector General.