Liner newcomer China United Lines (CUL) will cough up CNY 470m ($67m) to terminate long-term charters on up to a dozen boxships. The payment of a penalty will enable the company to end a long-term arrangement with Shanghai-listed Antong Holdings.

CUL was on the hook for charters of 12 panamax ships of 4,100 teu to 4,700 teu that had been taken for $52,000 per day, as well as the lease of containers. The charters were concluded last year and still had another two years to run. The vessels were initially chartered in March 2021 for a new Asia-Europe service, which was extended to the transpacific in July 2021, according to analyst Linerlytica.

The agreement took effect from 1 June 2022 and was supposed to expire in 34 months, on 1 April 2025. However, Antong told the Shanghai Stock Exchange on 28 November 2022 that CUL was seeking to terminate the agreement. A settlement announced on 9 December, if approved by Antong shareholders, will also include an additional payment for unpaid charters and lease payments. The deal will then terminate the Long-Term Cooperation Agreement between Antong and CUL.

CUL is one of several newcomers that have been forced to adapt to the dramatic falls in the container shipping market. Earlier this month it emerged that the company planned to abandon the Asia-Europe trades, where it operated a service jointly together with Taiwanese operator TS Lines. The company will continue to operate a transpacific service, but with smaller ships, according to Linerlytica.