US FILES ANTITRUST CASE AGAINST MAJOR CHINESE CONTAINER MANUFACTURERS
A US importer has filed a class action against four of the world's largest shipping container manufacturers and seven senior executives, alleging a long-running conspiracy to restrict container supply and fix prices during and after the COVID-19 pandemic. The case was announced by the U.S. Department of Justice (DOJ) and reported by Reuters.
According to the DOJ, the companies involved account for approximately 95% of global production of standard intermodal shipping containers. Authorities allege that the manufacturers coordinated production levels and pricing between November 2019 and January 2024, reducing the availability of containers at a time when global supply chains were under severe pressure.
The DOJ argues that these practices contributed to higher container prices and increased costs for businesses and consumers. "Around the start of the global pandemic, these manufacturers exploited the crisis and their market power to squeeze the supply chain for profit," Associate Attorney General Stanley Woodward said.
The case highlights renewed scrutiny of competition issues in global logistics markets following the disruptions experienced during the pandemic. Container shortages and unprecedented freight rate increases became a defining feature of international supply chains between 2020 and 2022, prompting calls from governments and industry stakeholders for greater transparency and resilience.
One of the defendants, Vick Ma, Marketing Director of Singamas Container Holdings, was arrested in France in April. The charges against the executives and companies were made public on 21 June. Singamas had not responded to requests for comment at the time of reporting.
Source: Reuters