Canex News

Service (SLCS), has agreed to charter a fixed number of container slots to CMA-CGM on one of its Montreal-North Europe services. The agreement is expected to take effect in late April after CMA-CGM has withdrawn its existing tonnage from this route. The slot-charter is in addition to the existing agreement between Canada Maritime, OOCL and the Canex consortium which began in January 2003. "This will help supply and demand in the Montreal-North Europe trade lane become better balanced," said CP Ships Executive Vice President Commercial Alan Boylan. The slots will be taken on three SLCS ships, Canmar Spirit, Canmar Venture and OOCL Montreal for service between Montreal and Antwerp and Le Havre.

CP Ships Limited's division Canada Maritime, along with OOCL, its partner in the St Lawrence Coordinated Service (SLCS), has agreed to charter a fixed number of container slots to members of the CANEX consortium, Maersk Sealand, Mediterranean Shipping Company and P&O Nedlloyd, in the North America-Europe trade via Montreal. The two year agreement takes effect from January 2003. In addition, to improve operational efficiency, CANEX expects to move its existing service from its current Montreal marine terminal to CP Ships' Montreal Gateway Terminals. The move is expected during the first quarter 2003. Initially, slots will be taken on three SLCS 2800 teu ice-strengthened ships, Canmar Pride, Canmar Honour and OOCL Belgium which operate on Route 1 Montreal-Thamesport-Antwerp-Le Havre.

CP Ships Limited today announced unaudited fourth quarter 2002 operating income before exceptional items of US $34 million, unchanged from the third quarter and slightly down from $35 million in fourth quarter 2001. Basic earnings per share before exceptional items was $0.23 compared with last year's $0.30 and third quarter's $0.27. Volume at 550,000 teu was a quarterly record, up 17% from fourth quarter 2001, reflecting both strong growth and the first full quarter of Italia Line. Average freight rates increased 1% from third quarter 2002 but were 4% lower than fourth quarter 2001. Cash from operations before exceptional payments was $29 million or $0.32 per share. Net income available to common shareholders was $23 million, compared to $25 million in fourth quarter 2001.

CP Ships Limited announced an unaudited first quarter 2003 operating loss of $2 million before exceptional items, a $4 million improvement on the $6 million operating loss in first quarter 2002 and compared with $34 million operating income before exceptional items in fourth quarter 2002. Basic loss per share before exceptional items was $0.12 compared with last year’s first quarter loss per share of $0.14 and fourth quarter 2002’s earnings per share of $0.23 before exceptional items. loss was $21 million representing a basic loss per share of $0.23 compared with $11 million net loss in the same quarter last year or loss per share of $0.14. Net income for fourth quarter 2002 was $23 million, a basic earnings per share of $0.26.