DOJ Charges Chinese Shipping Giants in $35 Billion Global Price-Fixing Scheme
By Jin Yan, Vision Times
On May 19, the U.S. Department of Justice (DOJ) unsealed a sweeping indictment accusing four of the world’s largest container manufacturers and seven Chinese executives of orchestrating a global price-fixing and supply manipulation scheme during the COVID-19 pandemic.
Prosecutors described the case as one of the most significant international antitrust investigations in recent years, involving an estimated $35 billion in affected commerce tied to the global shipping and logistics industry.
At the center of the case is the dramatic arrest of Vick Nam Hing Ma, a senior executive at Singamas, who was detained at Paris Charles de Gaulle Airport as part of a multinational law enforcement operation coordinated between French authorities and the Federal Bureau of Investigation.
RELATED: Deadly Hunan Factory Blast Raises Questions Over Military-Grade Materials
Exploiting a pandemic
SIGN UP FOR OUR FREE NEWSLETTER
You are now signed up for our newsletter
Check your email to complete sign up
According to the DOJ, the arrest operation, dubbed “Operation Midnight in Paris,” was carried out in coordination with French authorities and the FBI after Singamas executive Vick Nam Hing Ma traveled to France. U.S. officials said Ma was arrested at Paris Charles de Gaulle Airport and is currently awaiting extradition proceedings to the U.S.
“Global price-fixing cartels strike at the heart of our economic liberty,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The defendants held hostage the world’s supply of ocean shipping containers during the Covid pandemic when our supply chains needed it the most. They stole from everyday Americans who paid more and waited longer for vital goods as a result.”
“These defendants, as alleged, sought to exploit a global pandemic to increase their own profits,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “Their illegal agreement to fix prices and limit supply of these shipping containers resulted in the American consumer paying more and waiting longer for critical goods.”
Market manipulation
The indictment alleges that four Chinese-linked container manufacturing giants secretly coordinated production levels and pricing beginning in 2019 in order to dominate the global shipping container market. The companies named include:
According to prosecutors, the companies collectively controlled between 87 and 95 percent of the global dry cargo container market. The DOJ noted that senior executives from several firms met secretly at a CIMC facility in Shenzhen in November 2019 and agreed to restrict production levels.
Investigators further claimed the companies installed dozens of covert monitoring cameras across manufacturing facilities to monitor competitors’ production output, work shifts, and operating schedules in order to enforce the cartel agreement.
Internal communications cited in the indictment suggest executives were aware of potential antitrust violations. In one email referenced by prosecutors, a Singamas executive reportedly warned colleagues after a 2019 meeting to “keep a low profile” to avoid accusations of price manipulation.
Pandemic supply crisis fueled soaring profits
The conspiracy became especially consequential during the COVID-19 pandemic, when global shipping networks faced severe supply chain disruptions and container shortages. Prosecutors argue that instead of maximizing production during the crisis, the companies deliberately restricted output, worsening the shortage and driving container prices sharply higher.
According to DOJ figures:
The other companies named in the indictment also allegedly experienced dramatic financial reversals during the pandemic period.
Deputy Assistant Attorney General Stanley Woodward said the Justice Department intends to aggressively pursue companies accused of exploiting global economic disruption for profit. “Cheaters never prosper,” said Woodward. “This Department of Justice is ensuring that when American pocketbooks are pilfered, accountability will follow.”
Six executives now face international warrants
Following Ma’s arrest, U.S. authorities issued international warrants targeting six additional executives believed to remain inside China. Among those named are:
The case has already sent shockwaves through the international shipping industry and business community in Singapore and Hong Kong. Singapore authorities announced that Teo Siong Seng would step down from several influential business and advisory positions, while Singamas disclosed that it had retained legal counsel in response to the U.S. charges.
Legal analysts noted that because China and the U.S. do not have an extradition treaty, the remaining executives may avoid direct arrest so long as they remain inside China. However, the international warrants could effectively restrict their ability to travel abroad indefinitely, particularly to countries that maintain extradition agreements with Washington.
One legal expert, speaking anonymously, described Ma’s arrest in Paris as a warning to global executives who believe they are beyond the reach of American law enforcement. “As the Justice Department made clear,” the expert said, “if you cross the line, the next airport gate may be where justice is waiting.”