Chinese Carrier Sues Amazon For $96.4 Million Over Breach Of Contract

China United Lines (CULines), a Chinese shipping company, has filed a complaint against Amazon, seeking $96.4 million in damages.

The lawsuit, submitted to the Federal Maritime Commission (FMC) on January 9, alleges that Amazon wrongfully terminated a two-year contract and failed to pay $31.5 million owed at the time of termination.

CULines and Amazon entered into a contract in early 2022. The two-year deal, which started on May 1, 2022, included a clause that allowed for renegotiation after the first year, with a second year beginning on May 1, 2023.

The contract included a minimum quantity commitment (MQC) that Amazon was expected to meet. However, when Amazon decided to terminate the contract in April 2023, they initially agreed to pay the balance owed for cargo carried and for failing to meet their MQC, which was announced to be $31.5 million.

CULines claims that after initially agreeing to pay the $31.5 million, Amazon later changed the terms of termination, calling it a “for cause” termination instead of the “convenience” clause they originally agreed on.

This reclassification allowed Amazon to avoid p…

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