CP Ships will withdraw from slot charter

April 1, 2003
CP Ships Ltd has given notice to withdraw from its slot charter agreement with CMA CGM in the Asia-Europe trades effective in early March 2003. Under

CP Ships Ltd has given notice to withdraw from its slot charter agreement with CMA CGM in the Asia-Europe trades effective in early March 2003.

Under the agreement, two CP Ships brands, Contship Containerlines and Lykes Lines, offer services in the Asia-North Europe and Asia-Mediterranean trades. Neither brand deploys its own ships in these trades.

“After nearly two years in Asia-Europe it has become clear that being a relatively small newcomer in a large, highly competitive market and doing so using a ship network we do not manage ourselves is not a profitable long-term business model,” said Ray Miles, chief executive officer of CP Ships.

“We entered the trade just as it took a downturn, which made for a difficult start,” said Miles. “And despite recent signs of freight rate improvement, we do not anticipate a substantial enough recovery to justify continuation of the slot charter. However, we are reviewing options to provide other services in these and related trades in a way which gives us greater control over costs and service.”

CP Ships began the slot charter in March 2001.

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...

Fleet Industry Benchmarks: How does your fleet stack up?

Discover how your fleet compares to industry benchmarks and gain insights from a 2024 Benchmarking Report on maintenance spend, turnaround time, and more. Join us to identify ...

Build a Tolling Program to Manage Toll Fees and Risks

Fleets looking to effectively manage their operational costs should consider their tolling costs. Download the PrePass whitepaper, “Build a Tolling Program to Manage Toll Fees...

Reducing CSA Violations & Increasing Safety With Advanced Trailer Telematics

Keep the roads safer with advanced trailer telematics. In this whitepaper, see how you can gain insights that lead to increased safety and reduced roadside incidents—keeping drivers...