High charter termination rates force some liner operators to run at a loss
Severe early termination penalties on charters have seen a number of smaller carriers continue to ...
China’s second-largest domestic liner operator, Quanzhou Ansheng Shipping, has assigned 12 ships of over 20,000 teu to the transpacific and Asia-Europe trades, in collaboration with compatriot China United Lines (CULines).
Ansheng’s holding company, Antong Holdings, announced the move during the release of the group’s H1 22 results on Friday and follows a co-operation agreement with CULines signed in May.
Antong became state-controlled after a government-led bailout in 2020, after unauthorised guarantees issued by the previous management plunged the group into a financial crisis.
On its entry into the long-haul trades, Antong said: “CULines has more experience in overseas shipping routes and, by co-operating and integrating our resources, the Antong group can improve its operational efficiency and profitability.”
Originally an NVOCC, CULines began intra-Asia liner services on chartered vessels, but expanded its fleet with two second-hand ships and ventured into the transpacific and Asia-Europe tradelanes last year, as freight rates soared.
Antong’s relatively higher proportion of owned ships benefits CULines as it means both can manage charter costs, which remain high.
Ansheng, the 21st-ranked liner operator, has shipping capacity of 88,039 teu, including 42 owned ships of 59,507 teu. In comparison, CULines, ranked 23rd, owns just six vessels of 11,355 teu, chartering 27 others of 71,718 teu.
In H1 22, Ansheng handled 5.86m teu from its core coastal routes, down nearly 12% from H1 21 as volumes fell following the Shanghai lockdown from March to June.
However, freight rates were higher, resulting in revenue rising 40% to Rmb4.37bn ($688.19m), and net profits more than trebled to Rmb1.16bn ($182.68m).
Container shipping can see ‘green shoots’ of freight demand recovery
B: China, Brazil strike deal to ditch dollar for trade
Supply chains 'finally beginning to stabilise', says Maersk
Maersk 'on a journey' as it snaps up frozen foods logistics specialist
ONE becomes joint-owner of Seaspan Corp in $11bn takeover
DB Schenker sale – storm clouds gathering
Shippers reject carriers' opposition to ending anti-trust rules
AirBridgeCargo to relaunch with Russian aircraft, amid legal wrangles
Winning the race to 2026: Kuehne vs DSV vs DHL Global Forwarding
Marshall Islands in urgent talks with carriers after cargo is stranded by ban
Yang Ming says shippers taking time to commit to contracts as rates fall
Comment on this article