The US Department of Justice accuses major Chinese shipping container manufacturers of conspiring to restrict supply and fix prices during the COVID-19 pandemic, impacting global supply chains.
The United States Department of Justice (DOJ) has formally charged seven Chinese executives and four leading shipping container companies with participating in an illegal cartel that manipulated the global shipping container market. The companies, which together account for approximately 95% of the world’s standard dry shipping containers, are accused of conspiring to limit supply and fix prices from November 2019 through January 2024. DOJ officials state that during the COVID-19 pandemic, these manufacturers exploited their dominant market position to restrict container output, leading to increased costs and longer waiting times for US consumers and businesses relying on global supply chains. One of the executives, Vick Ma, marketing director at Singamas Container Holdings Ltd, was arrested in France in April as part of the ongoing investigation. This cartel allegedly contributed to supply chain disruptions and higher prices during a critical period of global economic stress. Singamas Container Holdings Ltd has yet to publicly respond to the allegations. The DOJ’s announcement highlights the risks of anti-competitive practices in essential global industries and underscores efforts to protect consumers and maintain fair market competition.
Sources referenced:
- https://www.gmanetwork.com/news/topstories/world/988259/us-charges-seven-chinese-executives-and-four-firms-with-illegal-shipping-container-cartel/story/