Singapore shipping tycoon Teo Siong Seng has been accused by the US of working with others to increase prices for dry shipping containers. This places him at the heart of a major antitrust case involving one of Singapo...
Singapore shipping tycoon Teo Siong Seng has been accused by the US of working with others to increase prices for dry shipping containers. This places him at the heart of a major antitrust case involving one of Singapore's top business figures.
Teo, along with several executives from four of the world’s largest shipping container manufacturers, was charged by the US Justice Department in what they are calling a "global conspiracy impacting billions of dollars in commerce." The charges were filed in January and made public earlier this week.
Teo, whose role is CEO of Singamas Container Holdings Ltd., is alleged to have taken part in an agreement to limit production via quotas and impose penalties for exceeding these limits from 2019 until at least 2024, according to court documents. Other companies and executives, including China International Marine Containers Co., Dong Fang International Container Co., and CXIC Group Containers Co., are also part of the investigation.
This case has sparked increased attention on Singapore’s maritime industry, which has already faced scrutiny due to several major corporate scandals over the last decade. For instance, the founder of Hin Leong Trading Pte was imprisoned after hiding significant losses from more than 20 banks, while Seatrium Ltd. paid $241 million to resolve a lengthy corruption investigation in Brazil.
Teo will temporarily step back from his positions at the Singapore Business Federation, the Singapore Economic Resilience Taskforce, and the government agency Enterprise Singapore to focus on the legal issues he is facing, according to the Ministry of Trade and Industry’s announcement on Friday. His role as chairman of the business federation runs until June.
Teo did not reply to a request for comments via email. Singamas stated in a filing on Wednesday that it has hired outside legal experts and that its operations continue as usual. The company also mentioned that neither it nor Teo has been formally served with the US Justice Department charges.
Following a 14% drop on Thursday, Singamas shares rose by 2% on Friday.
Pacific International Lines Pte., the parent company of Singamas, responded to a Bloomberg News inquiry by saying they cannot comment on the situation or on Teo's role at the company. In 2021, PIL received a $600 million bailout from a branch of Singapore's state investor Temasek Holdings Pte.
Teo, who is a major figure in Singapore's business community, was recently highlighted in a social media video by the Maritime and Port Authority of Singapore, discussing his family’s shipping legacy.
According to US prosecutors, Teo was informed before a December 2019 meeting in Shanghai about plans to discuss the “healthy development” of the container industry. He was allegedly briefed about efforts to intentionally restrict production before a formal agreement was made with other accused co-conspirators.
The indictment alleges that steps were taken to hide the collusion. After the 2019 meeting, Teo is said to have remarked that “we also need to keep low key.” A Singamas executive had warned the group not to be too high profile as they could violate antitrust laws or face accusations of price manipulation.
Another board member from Singamas noted that the discussions seemed “anti-competition” and suggested deleting the email chain after going through it. Teo responded, “Yes I feel the same.”