CP Ships’ Lykes Lines Awarded $145M Contract

The US Department of Transportation has granted Lykes Lines, a subsidiary of CP Ships, the right to operate five US-flag containerships in its new Maritime Security Program for ten years beginning 1st October 2005. The ships will receive government subsidy to offset the cost of operating under US flag. Over the ten-year contract term, the subsidy will total $145 million. The five ships will operate on the TransAtlantic. MSP was created to ensure the Department of Defense has ready access to a fleet of modern and efficient commercial US-flag ships that could be made available in times of war or national emergency. This new contract represents an increase in Lykes Lines' participation in MSP. It currently operate five US flag ships in a single loop on the TransAtlantic, but only three are MSP ships and receive subsidy under the existing contract which expires on 30th September 2004.