The Justice Department unsealed a historic superseding indictment charging four of the world’s largest shipping container manufacturers — CIMC, Singamas, Dong Fang, and CXIC — and seven senior executives for conspiring to restrict global container output and fix prices from November 2019 through at least January 2024, covering an estimated $35 billion in commerce and generating near-hundredfold profit increases during the COVID pandemic. In this episode, Michael Volkov examines the mechanics of the cartel, including factory See more +
The Justice Department unsealed a historic superseding indictment charging four of the world’s largest shipping container manufacturers — CIMC, Singamas, Dong Fang, and CXIC — and seven senior executives for conspiring to restrict global container output and fix prices from November 2019 through at least January 2024, covering an estimated $35 billion in commerce and generating near-hundredfold profit increases during the COVID pandemic. In this episode, Michael Volkov examines the mechanics of the cartel, including factory surveillance cameras used to police production quotas, the dramatic “Operation Midnight in Paris” arrest of Singamas executive Vick Ma at Charles de Gaulle Airport, and the critical governance failure at the center of the case — that the cartel was built and operated by the companies’ own CEOs and chairmen. Michael also discusses the essential elements of an effective antitrust cartel compliance program, including tone at the top, scenario-based antitrust training, competitor interaction policies, internal reporting mechanisms, communication hygiene, industry risk assessments, and the strategic importance of DOJ’s Corporate Leniency Program as a first-mover immunity opportunity for companies that detect cartel conduct early. See less –