News / US supplier follows indictment of 'container cartel' with suit for damages

US supplier Atlantic Coast Container has launched a lawsuit against the four container makers the US Department of Justice has indicted for alleged cartel-like behaviour.

The lawsuit, which may become a class action, claims CIMC, Shanghai Universal (better known as Dong Fang), CXIC, and Singamas collectively reduced output of dry containers to raise prices.

US law firm Cotchett, Pitre & McCarthy said on Friday it had filed the lawsuit in the US District Court of California on behalf of Atlantic Coast, which sells new and used containers throughout the US.

The DoJ, which has also indicted Mai Boliang and Teo Siong Seng, respective chairmen of CIMC and Singamas, claims the cartel-like actions occurred between 2019 and 2024, coinciding with the Covid-induced peak in freight rates. Between them, the four manufacturers produce 95% of all new containers.

Cotchett, Pitre & McCarthy is urging other companies that bought dry containers from the four at the time to join the legal action to also seek damages.

It said: “Shipping containers are indispensable to international commerce and are used to transport goods throughout domestic and international supply chains. The lawsuit alleges that the defendants’ conduct increased costs for businesses throughout the US and harmed competition in a market critical to the global economy.”

Atlantic Coast’s is the second known legal action tied to the indicted container-makers. CA Spalding, a US supplier of automotive and aerospace components, also initiated litigation against them this month.