The US Department of Justice has indicted four Chinese container manufacturers and seven executives for conspiring to restrict output and fix prices of standard dry shipping containers, reported the Hong Kong Trade Development Council.

Indicted are Singamas Container Holdings Ltd, China International Marine Containers (CIMC), Shanghai Universal Logistics Equipment Co. (also known as Dong Fang International Containers), and CXIC Group Containers Co. Ltd.

Prosecutors stated that the alleged conspiracy doubled container prices between 2019 and 2021, significantly boosting profits during the Covid scare and the global supply chain crisis. The indictment claims that the companies agreed to limit production shifts, install surveillance cameras, avoid building new factories, and penalize cheating through a shared fund.

The DOJ indicated that the conspirators later restricted output for specific customers, including container lessors, shipping lines, and logistics firms in the US, Europe, and China. They also capped the total cargo volume of containers produced.

The indictment charges violations of Section 1 of the Sherman Antitrust Act. Corporations face fines of up to US$100 million, while individuals risk 10 years in prison and $1 million in fines. Penalties may be increased to twice the gain from the crime or twice the loss suffered by victims.