Did You Purchase Dry Shipping Containers Between 2019 and 2024?

Grabar Law Office is investigating potential antitrust claims on behalf of businesses and entities that purchased or leased standard dry shipping containers (“DSCs”) directly from manufacturers or their subsidiaries during the period from at least 2019 through 2024.

According to a superseding indictment filed by the United States Department of Justice in the Northern District of California, four of the world’s largest shipping container manufacturing companies and several senior executives were indicted for allegedly conspiring to restrict output and fix the prices of standard dry shipping containers sold throughout the United States and worldwide.

The DOJ alleges that the conspiracy lasted from at least November 2019 through January 2024 and affected billions of dollars in commerce.

THE INVESTIGATION

The DOJ alleges that the defendants and co-conspirators collectively controlled approximately 95% of the worldwide market for standard dry shipping containers.

The indicted companies include:

• China International Marine Containers (Group) Co., Ltd. (“CIMC”)
• Singamas Container Holdings Ltd.
• Shanghai Universal Logistics Equipment Co., Ltd. (“Dong Fang”)
• CXIC Group Containers Co. Ltd.

According to the indictment, these companies allegedly agreed to:

• Limit the number of production shifts and operating hours on container production lines;
• Install surveillance cameras across production facilities to monitor compliance with agreed production limits;
• Avoid building new container manufacturing factories; and
• Establish financial penalties for companies that exceeded agreed production quotas.

The DOJ further alleges that the conspiracy artificially constrained the global supply of DSCs during the COVID-19 pandemic and global supply chain crisis, causing prices for standard containers to more than double between 2019 and 2021.

For example:

• Prices for standard 20-foot dry containers allegedly increased from approximately $1,600 to more than $3,500;
• Prices for standard 40-foot dry containers allegedly increased from approximately $2,800 to more than $5,900; and
• Prices for 40-foot high-cube containers allegedly increased from approximately $3,000 to more than $6,000.

The indictment also alleges that the conspirators coordinated production quotas for major U.S.-based container lessors, shipping lines, and logistics companies.

The indictment can be viewed here: Shipping Container Indictment - 439928_0

WHO MAY HAVE BEEN IMPACTED?

Potentially affected purchasers may include:

• Shipping and logistics companies;
• Intermodal transportation providers;
• Container leasing companies;
• Importers and exporters;
• Retailers and wholesalers;
• Chemical distributors and industrial suppliers;
• Agricultural and food distributors;
• Manufacturers relying on containerized freight; and
• Other businesses that purchased standard dry shipping containers directly from manufacturers or affiliated sellers.

The DOJ alleges that the conspiracy affected “billions of dollars of goods across the oceans to American households each year.”

WHAT ARE STANDARD DRY SHIPPING CONTAINERS?

Standard dry shipping containers are non-refrigerated steel shipping containers used to transport goods worldwide. According to the indictment, the most common standard sizes include:

• 20-foot containers;
• 40-foot containers;
• 40-foot “high cube” containers; and
• 45-foot high cube containers.

These containers are widely used throughout global supply chains to transport consumer products, industrial materials, electronics, medical supplies, chemicals, food products, and retail merchandise.

WHY CONTACT GRABAR LAW OFFICE?

Grabar Law Office has decades of experience in prosecuting antitrust and price-fixing litigation on behalf of businesses, institutional purchasers, and other direct purchasers harmed by unlawful conspiracies.

If your company purchased dry shipping containers directly from any of the manufacturers identified above, your business may have claims for damages and additional court approved service awards under the federal antitrust laws.

CONTACT US

If you purchased standard dry shipping containers between 2019 and 2024 and would like additional information regarding this investigation, please contact:

Joshua Grabar, Esq.

Grabar Law Office
One Liberty Place
1650 Market Street, Suite 3600
Philadelphia, PA 19103

Email: jgrabar@grabarlaw.com
Phone: (267) 507-6085