MAJOR MONTREAL/NORTH EUROPE CONTAINER CARRIERS COOPERATE

MAJOR MONTREAL/NORTH EUROPE CONTAINER CARRIERS COOPERATE    The major container shipping lines in the Montreal/North Europe trade have announced their first cooperation agreement, a slot purchase and terminal use agreement linked to the introduction of larger ships.
   The cooperation will involve Canada Maritime and OOCL, the partners of the St. Lawrence Coordinated Service consortium, and its main competitors, Maersk Sealand, Mediterranean Shipping Co. and P&O Nedlloyd, the members of the CANEX joint service.
   Under the pact, Maersk Sealand, Mediterranean Shipping Co. and P&O Nedlloyd will charter about 500 TEUs a week of container slots from Canada Maritime/OOCL.
   The two-year agreement takes effect in January.
   “Initially, CANEX will take slots on three St. Lawrence Coordinated Service 2,800-TEU ice-strengthened ships,” the five carriers said in a joint statement.
   Maersk Sealand, Mediterranean Shipping Co. and P&O Nedlloyd will therefore have space on the “Canmar Pride,” “Canmar Honour” and “OOCL Belgium,” which operate on Montreal/Thamesport/Antwerp,Le Havre route.
   In the second half of 2003, the 2,800-TEU ships will be replaced by three new 4,100-TEU vessels being built for Canada Maritime and OOCL.
   Maersk Sealand may increase its number of slots on the St. Lawrence Coordinated Service once the bigger ships have been introduced, said Joergen Schmidt, director of transatlantic services at Maersk Sealand.
   The slot charter will also allow the CANEX carriers to offer a second weekly service between Montreal and North Europe. The CANEX service utilizes three vessels with capacities of about 2,500 TEUs.
   The slot purchase does not affect the CANEX service, which will continue. However, the CANEX service will switch to the Montreal Gateway Terminals operated by CP Ships, the parent company of Canada Maritime. The move is expected during the first quarter 2003.
   “It is also further evidence of carriers’ commitment to work closer together as operating partners to achieve a better balance between capacity and container trade growth in the highly competitive transatlantic market,” said Ray Miles, chief executive officer of CP Ships.
   The five shipping lines said they would continue to market their services independently.