Chinese Carrier Sues Amazon for $96.4 Million – Here’s Why

Chinese shipping company CULines has filed a $96.4 million lawsuit against Amazon, accusing the e-commerce giant of wrongful contract termination and unpaid dues.

Amazon signed a two-year deal in 2022, agreeing to a minimum cargo volume. But in April 2023, it abruptly ended the contract, initially agreeing to pay $31.5 million in penalties.

Later, Amazon reclassified the termination as “for cause,” avoiding payment. CULines argues this was a deliberate move to sidestep financial obligations.

The dispute also involves a confidentiality breach. CULines claims Amazon shared private contract details on WeChat and with trade media, violating a non-disclosure agreement.

Falling shipping rates may have played a role. When the contract began, rates were $8,564 per container. By termination, they had plunged 79% to just $1,775.

CULines believes Amazon ended the contract to escape higher costs. The case, filed with the Federal Maritime Commission, could set a major precedent.

The ruling is expected within a year. If CULines wins, this could reshape how major corporations handle shipping contracts. Amazon has 25 days to respond.