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CP Ships to Withdraw from Asia-Europe Slot Charter
| 17.12.02 London, UK (17 December 2002) - CP Ships Limited announced today that it has given notice to withdraw from its slot charter agreement with CMA CGM in the Asia-Europe trades effective 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 CP Ships CEO Ray Miles. "We entered the trade just as it took a downturn, which made for a difficult start. 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. -ends- |
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