CP SHIPS WITHDRAWS FROM ASIA-EUROPE TRADE

CP SHIPS WITHDRAWS FROM ASIA-EUROPE TRADE

   CP Ships Limited announced on Tuesday that it has given notice to withdraw from its slot charter agreement with CMA CGM in the Asia-Europe trades, effective in early March 2003.

   As part of the slot charter 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 on those routes.

   “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. And, despite recent signs of freight rate improvement, we do not anticipate a substantial enough recovery to justify continuation of the slot charter,” Miles said.

   CP Ships is looking at ways “to provide other services in these and related trades,” Miles explained, so that it could retain “greater control over costs and service.”