By: Richard L. Smith
A Cinnaminson-based corporation that designs, modifies, and manufactures shipping containers has agreed to pay $2.6 million to resolve federal allegations that it violated U.S. cargo transportation laws tied to military contracts.
According to a statement released by the U.S. Department of Justice, SEA BOX entered into a settlement agreement with the United States to resolve claims that it failed to comply with the Cargo Preference Act and related defense contract requirements.
Federal officials contended that under long-standing law — dating back more than a century — supplies purchased for Department of Defense agencies must be transported by sea on U.S.-flagged vessels.
The requirement, incorporated into defense contracts through federal acquisition regulations, is intended to protect American shipping interests and maintain a merchant marine capable of supporting both commercial and military operations.
Between late 2017 and late 2021, SEA BOX was awarded approximately 35 contracts to provide International Organization for Standardization (ISO)-compliant shipping containers for the Department of the Army and Department of the Air Force, primarily through the Defense Logistics Agency.
Authorities alleged that despite contractual obligations, the company arranged for the containers to be shipped on lower-cost, foreign-flagged vessels.
The government further asserted that this practice reduced SEA BOX’s costs and allowed it to underbid competitors that complied with U.S.-flag shipping requirements.
Officials also alleged the company provided inaccurate and misleading information when questioned by military authorities.
The matter was resolved under the civil False Claims Act, with SEA BOX agreeing to pay $2.6 million plus interest over a three-year period. 
The settlement resolves the allegations without a determination of liability.
Federal authorities emphasized that enforcement actions remain a priority in protecting the integrity of the Department of Defense procurement system and supporting American maritime industry requirements.