The U.S. Department of Justice has charged four major shipping container manufacturers and seven top executives in what they call a large-scale conspiracy to limit container production and raise prices during the COVID-...
The U.S. Department of Justice has charged four major shipping container manufacturers and seven top executives in what they call a large-scale conspiracy to limit container production and raise prices during the COVID-related supply chain crisis.
A new indictment was revealed on Tuesday in the Northern District of California, claiming that the companies worked together from late 2019 until early 2024 to decrease output and fix prices for standard dry shipping containers — the steel boxes that are essential for most global trade.
Prosecutors state that this conspiracy caused container prices to nearly double from 2019 to 2021, leading to large profits as global supply chains struggled due to pandemic disruptions. The indictment shows that profits for China International Marine Containers (CIMC) rose dramatically from around $19.8 million in 2019 to about $1.75 billion by 2021.
The indictment focuses on four major Chinese firms: China International Marine Containers, Singamas Container Holdings, Shanghai Universal Logistics Equipment, and CXIC Group Containers. These companies produce over 90% of the world's shipping containers.
One executive, Vick Nam Hing Ma, the marketing director of Singamas, was arrested in France on April 14 and is now waiting to be sent back to the U.S. Six other executives are still on the run, according to the Justice Department.
Prosecutors allege that executives from these companies met at CIMC's headquarters in Shenzhen in November 2019, where they agreed to limit production using a coordinated system of factory controls and quotas.
The indictment describes how the alleged cartel set strict production limits, which included reducing factory shifts and hours, installing 87 surveillance cameras across 49 production lines to ensure compliance, not building new container factories, and creating penalties for companies that exceeded agreed output levels.
As the conspiracy continued, it expanded to limit customers and cargo volumes, impacting major container leasing companies, shipping lines, and logistics providers both in the U.S. and globally, according to prosecutors.
“Global price-fixing cartels threaten our economic freedom,” Acting Assistant Attorney General Omeed Assefi said in a statement. “The defendants held the world’s supply of shipping containers hostage during the COVID pandemic when our supply chains were most in need.”
This case highlights a vulnerability in the maritime supply chain that became painfully clear during the pandemic, when container shortages led to severe port congestion, skyrocketing freight rates, and significant disruptions in global trade.
China leads the global container manufacturing industry, making over 90% of the world's supply. During the pandemic, container prices more than doubled as carriers and shippers raced to obtain equipment.
The situation also adds to the growing U.S. concern about China's dominance in maritime supply chains, which includes shipbuilding, port equipment, intermodal chassis, and container manufacturing.
A 2025 investigation by the Office of the U.S. Trade Representative suggested that China's maritime strategy poses important economic and national security risks to the U.S., citing Beijing's strong control over container production and other essential shipping infrastructures.
Charges under the Sherman Act can lead to severe penalties, including maximum prison sentences of 10 years and fines of $1 million for individuals, while companies could face fines up to $100 million or twice the profits gained from the alleged activities.