politics
U.S. Justice Department Indicts Chinese Container Firms for Price Fixing
The U.S. Department of Justice indicted four Chinese container manufacturers and seven executives on May 19 for alleged price fixing and output restrictions. The companies control about 87 percent of global dry shipping container production.
May 22, 1:09 PM·1m read1 source
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U.S. Department of Justice indicted four Chinese container manufacturing companies and seven executives on May 19 for a global conspiracy to fix prices and restrict output of standard dry shipping containers. The indictment alleges the companies coordinated price cuts from at least 2019 to 2024 to eliminate outside competitors before raising prices.
Internal company emails and meeting records reportedly expressed concern that the scheme could violate antitrust laws.
The United States invented the shipping container in the 1950s. China now produces approximately 95 percent of the world's dry shipping containers. The indicted companies include one wholly owned subsidiary of China state-owned shipping line COSCO. The firms together control roughly 87 percent of global container manufacturing.
China controls 62 to 69 percent of new shipbuilding orders, operates or holds stakes in 129 ports across six continents, and supplies about 80 percent of the world's ship-to-shore cranes. The indictment states the companies doubled container prices during the COVID-19 period when supply chains were already strained.
Company profit margins reportedly increased one hundredfold during that time. U.S. Department of Justice said the alleged cartel operated during a period of severe supply chain strain.
