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CONTSHIP/FANAL AGREEMENT HITS A SNAG

CONTSHIP/FANAL AGREEMENT HITS A SNAG

   The proposed slot-exchange plan of Contship Containerlines and FESCO’s
FANAL service on the North America/Australia/New Zealand/Islands trade, has still not
started and appears to be off.

   A spokesman for Contship said FESCO was unhappy about the acquisition of
West Coast operator Australia New Zealand Direct Line by Contship’s parent, CP Ships.

   When the Contship/FANAL cooperation was announced last September, the plan
was for FANAL to swap some of its West Coast slots for some of Contship’s southbound-only
U.S. East Coast space.

   In the meantime, Contship is buying 70 slots per sailing on the ships of
ANZDL, its new sister company.