SIMIC

Ansheng's holding company, Antong Holdings, announced the move during the recent release of the group's H1 22 results and follows a co-operation agreement with CULines signed in May, reports London's Loadstar,

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.

In H1 22, Ansheng handled 5.86 million TEU from its core coastal routes, down nearly 12 per cent from H1 21 as volumes fell following the Shanghai lockdown from March to June.

However, freight rates were higher, resulting in revenue rising 40 per cent to CNY4.37 billion (US$688.19 million), and net profits more than trebled to CNY1.16 billion.