MSC and Great White Fleet file space charter agreement

Companies sign agreement for five ships to service between the East Coast and Gulf Coast, and Central America.    Great White Fleet, which carries fruit for Chiquita, and MSC have filed a space-sharing agreement that would establish a container-shipping service between Central America and the U.S.
   The service will initially use five ships with capacity of 2,500-2,800 TEU, owned or chartered by MSC, each with a minimum of 550 reefer plugs. The space will be shared by MSC and Great White Fleet. Without amendment, the agreement allows the two companies to operate up to eight 4,000 TEU ships with 650 reefer plugs.
   The agreement notes that GWF will have the option, at its expense, to paint one or more of the vessels in its distinctive all-white livery, and place the GWF company flag and logo on the ships.
   According to an FMC filing, the ships will call between the U.S. East and Gulf Coasts and the Bahamas, Guatemala, Honduras, Costa Rica and Panama.
   Chiquita Brands International has announced plans to merge with Ireland-based Fyffes, which would make it the largest banana company, ahead of Dole Food. Some shareholders are asking Chiquita to consider a competing bid from the Brazilian companies Cutrale and Safra.
   In 2007, Chiquita sold and leased back 11 cargo ships specialized for the transportation of bananas.
   In a prospectus for the merger with Fyffes, Chiquita said its “ocean shipping needs are provided under a combination of long-term charters with negotiated fixed rates and market rates for ships under short-term charters and transportation contracts.”
  It continued, “Although short-term ship charter rates and container shipping rates have decreased in recent years, as the global economy recovers, rates may increase in the future. Furthermore, since Chiquita’s shipping configuration may rely more on short-term charters and transportation contracts, it may be more susceptible to these increases in the future than it has in the past. “