US firms sue Teo Siong Seng and container makers over alleged global shipping container price-fixing scheme
Two US companies have filed class-action lawsuits against Singamas, major container manufacturers and executives including Teo Siong Seng, seeking damages over an alleged conspiracy to restrict output and inflate dry shipping container prices worldwide.
- Two US companies have sued major container manufacturers and executives over alleged price-fixing.
- The lawsuits follow a US Department of Justice criminal antitrust indictment.
- Plaintiffs claim container output restrictions led to higher shipping costs and financial losses.
CALIFORNIA, UNITED STATES: Two United States companies have filed class-action lawsuits against shipping veteran Teo Siong Seng, several container manufacturing executives and three major container producers, alleging a conspiracy to restrict production and inflate the prices of dry shipping containers.
The lawsuits, brought separately by manufacturer CA Spalding Company and shipping company Daybreak Express, follow criminal antitrust charges filed by the US Department of Justice.
The civil actions were lodged on 2 June 2026 and 9 June 2026 respectively.
Seeking damages over alleged overcharges
Both lawsuits name Singamas, China International Marine Containers, CXIC Group Containers and a group of executives, including Teo, who serves as chairman and chief executive of Singamas.
The plaintiffs are seeking monetary compensation for losses allegedly caused by the conduct outlined in the federal indictment.
CA Spalding, a supplier of components to the aerospace, automotive and other industries, said it was forced to pay higher costs to transport goods because of the alleged scheme.
According to its court filing, the company is seeking “multiple or treble damages” as monetary relief.
The lawsuits are separate from the criminal proceedings initiated by federal prosecutors, although civil actions commonly follow antitrust prosecutions in the United States.
Justice Department alleges coordinated output restrictions
The US Department of Justice has accused the defendant companies of orchestrating a price-fixing conspiracy involving standard dry shipping containers.
Federal prosecutors said the companies collectively manufacture about 95 per cent of the world’s standard dry shipping containers, giving them significant influence over global supply.
Standard dry shipping containers, which are unrefrigerated, are used to transport billions of dollars worth of goods across international shipping routes each year, including products destined for households throughout the United States.
According to the indictment, the companies allegedly increased prices by deliberately restricting output through a range of coordinated measures.
Prosecutors alleged these measures included limiting the operating hours of container production lines, installing video surveillance systems to monitor compliance and agreeing not to build new manufacturing facilities.
The alleged conspiracy is said to have operated for more than four years, from November 2019 until at least January 2024.
Price surge and profit growth alleged
Federal prosecutors alleged the production restrictions significantly affected market prices.
According to the indictment, the price of standard dry shipping containers roughly doubled between 2019 and 2021.
The Justice Department further alleged that the higher prices resulted in container manufacturers increasing their profits by approximately one hundredfold during the period.
Prosecutors said the defendants' customers included “major US-based container lessors, shipping lines, and logistics companies”.
They alleged that the conduct ultimately resulted in delays and higher costs that were passed on to American consumers.
Court documents cite internal communications
US court documents also reference communications involving executives linked to the alleged conspiracy.
According to the indictment, following a December 2019 meeting involving the alleged conspirators, a Singamas executive reported to Teo that participants had been reminded “not to be high profile since it might violate the monopoly law or being accused of price manipulation by our customers”.
Court documents state that Teo allegedly responded: “We also need to keep low key.”
The communications were cited by prosecutors as part of the broader case against the defendants.
Teo steps back from public roles
Since being named in the Justice Department's indictment in late May, Teo has taken leave from several prominent positions.
These include his roles with the Singapore Business Federation, the Singapore Economic Resilience Taskforce, the National University of Singapore and shipping company Pacific International Lines.
Teo also announced that he would not seek re-election as chairman of the Singapore Business Federation when his term expires on 24 June.
In a statement issued after the indictment became public, Teo said: “I have proactively decided to take these leaves of absence to afford myself sufficient time to attend to this matter, and for the best interests of the aforementioned organisations.”
