• CP Ships will withdraw from slot charter

    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
    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 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.

    Sign up for our free eNewsletters

    Voice Your Opinion!

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