Singapore shipping magnate Teo Siong Seng has been indicted by the US Justice Department for allegedly colluding to fix dry-container prices in a global cartel case, reports Bloomberg News.

Prosecutors stated that Teo, the chief executive officer of Singamas Container Holdings, entered into an agreement with executives from China International Marine Containers, Dong Fang International Container, and CXIC Group Containers to restrict output and penalize excess production between 2019 and 2024.

The indictment, filed in January and unsealed this week, alleged that the conspiracy affected billions of dollars in trade. Teo was briefed ahead of a December 2019 meeting in Shanghai where plans to curb production were discussed before a formal pact was signed.

This case adds to the scrutiny of Singapore's maritime sector following scandals involving Hin Leong Trading and Seatrium Ltd. Teo will step aside from his roles at the Singapore Business Federation, the Economic Resilience Taskforce, and Enterprise Singapore to address the charges, as stated by the Ministry of Trade and Industry.

Singamas informed the Hong Kong exchange that it had hired external legal advisers and that operations remained normal. The company noted that neither it nor Teo had been served by US authorities. Shares rose by 2 percent on Friday after a 14 percent fall the previous day.

Pacific International Lines, the parent company of Singamas, stated that it could not comment on the matter. PIL received a US$600 million rescue package from Temasek Holdings in 2021. Teo, a prominent figure in Singapore shipping, was recently featured by the Maritime and Port Authority in a video discussing his family's legacy.

Court documents revealed that Teo urged conspirators to 'keep low key' after the 2019 meeting. A Singamas executive warned against being 'high profile' to avoid violations of monopoly law. Another board member described the talks as 'anti-competition' and suggested deleting emails, to which Teo replied, 'Yes, I feel the same.'