US Accuses Shipping Executives of Price-Fixing Conspiracy

US court documents show that shipping executives tried to hide a price-fixing plan.

Seven executives, including Teo Siong Seng, are accused of restricting output and fixing prices of dry containers.

An indictment is a document that lists formal charges against defendants.

Singamas said it has not received any legal documents from the US Justice Department.

The alleged conspiracy lasted over four years, from November 2019 to at least January 2024.

After a meeting in December 2019, a Singamas executive reminded others to keep a low profile.

Mr Teo wrote back, saying they also needed to keep a low profile.

Another Singamas board member felt uneasy about the discussion and suggested deleting the email string.

Mr Teo agreed, saying he felt the same way.

Mr Teo is also the chairman of the Singapore Business Federation.

Singamas makes and sells dry shipping containers to customers in the US and elsewhere.

China International Marine Containers also makes and sells dry shipping containers.

Shanghai Universal Logistics Equipment Co owns and manages a brand of shipping containers called Dong Fang.

CXIC Group Containers Co makes and sells dry shipping containers to customers in the US and elsewhere.

Teo Siong Seng, 71, is the CEO of Singamas.

Vick Ma Nam Hing, 54, is the marketing director of Singamas.

Mai Boliang, 67, has worked in various senior roles at CIMC.

Huang Tianhua, 62, is a vice president at CIMC.

Wan Yongbo, 47, is a general manager at CIMC.

Li Qianmin, 62, is a general manager at Dong Fang.

Zhang Yuqiang, 49, is the CEO of CXIC.

US prosecutors say the alleged conspirators started discussing the scheme in March 2019.

In November 2019, CIMC, Dong Fang, CXIC, and another company met to restrict output of standard dry containers.

The goal was to raise the price of standard dry shipping containers.

A week later, a Singamas executive emailed Mr Teo about a meeting with Dong Fang's general manager.

On December 5, 2019, the Singamas executive updated Mr Teo on the meeting.

The companies discussed limiting production and having each factory submit a deposit.

The executive reminded the others not to be high profile.

By February 2020, a draft contract was circulated to the companies.

The conspirators refined the operation of the output-restriction agreement.

By September 2020, they agreed to restrict production for certain customers.

These customers included major US-based container lessors and shipping lines.

In October 2021, a Singamas executive sent a draft slide deck to another executive.

The receiving executive suggested deleting the word 'alliance' due to anti-trust law.

In March 2022, a CIMC executive circulated a report on Chinese container manufacturers.

Mr Mai told others to pay close attention but not respond or discuss.

A Singamas executive commented on a draft slide deck for Mr Teo's presentation.

The executive suggested not putting 'market discipline' on the slide due to anti-trust issues.

Mr Teo replied that he would make some amendments to the slide.

The US prosecution cited these steps as attempts to conceal the scheme.

In July 2022, Singamas executives, including Mr Teo, met to discuss output-restriction measures.

From September 2022 to November 2023, the conspirators agreed to cap cargo volume.

The conspirators preferred to discuss restrictions in person to avoid suspicion.

Two meetings took place in February 2023 and March 2024, involving Singamas executives.

The group allegedly worked to halt the growth of smaller manufacturers.

They talked about waging 'war' against smaller manufacturers.

A Singamas executive said the agreement was kept confidential at a high level.

In February 2023, an executive raised concerns about anti-trust violations.

From 2019 to 2021, the price of a standard dry container more than doubled.

During the same period, the price of a standard dry 40-foot container more than doubled.

The profits of CIMC's manufacturing business segment increased nearly one hundredfold.

Singamas' net income increased from a loss to profits of about $186.8 million in 2021.

The defendants allegedly held hostage the world's supply of ocean shipping containers.

If found guilty, the defendants face up to 10 years in prison and a $1 million fine.

The fines may be raised to twice the gains from the crime or losses suffered by victims.

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