MILES SAYS LINER SHIPPING FINANCIALLY ‘SICK’

   Ray Miles, chief executive officer of CP Ships, says the liner shipping
industry is financially "sick."
   He said that of the top 20 carriers, 12 lost money last year, seven made
some profits but not enough to cover their cost of capital. He said only
one made an economic return, suggesting that the one carrier in question is
his own company.
   Despite this record ocean carriers have invested $35 billion of capital
into the shipping industry between 1996 and 1998. "This is astonishing," he
said.
   Miles said that even carriers on the verge of bankruptcy can obtain
banks’ or shareholders’ support for extra funds, although he added there is
evidence that Asian carriers hit by their region’s economic crisis are now
required to stick to certain financial requirements.