CSM loses Bermuda Container Line contract

The shipping firm that owns the Oleander will cut ties with its agent Container Ship Management next year.

Neptune Limited, which owns Bermuda Container Line, informed CSM of the move last week.

Neptune’s new President and CEO, Barry Brewer, told the Bermuda Sun that the day-to-day running of the Oleander would be brought ‘in-house’ in a bid to cut expenses.

But he said it was too early to say what would happen to CSM.

Mr Brewer added: “The main issue is expense.

“The Bermuda container market has been constricting for some time now and we are working at restricting every single expense we can.

“Outsourcing to CSM worked well in the past.

“But now we have decided to insource the management.

“It is clear we have to build out a team to manage operations, and that is my job.

“It is clear there are some very, very good people working at CSM and we respect that and will look at all options.”

This week CSM, which has been responsible for the day-to-day operations of the Oleander for several years, contacted its customers to inform them of the upcoming change.

The change will see Bermuda Container Line take over the running of the ship.

The letter stated: “Neptune Group Limited, the owners of Bermuda Container Line Ltd., have decided to move the management of the Group in-house effective January 1st 2014 and will be building their new team over the next ten weeks.

“Consequently Neptune has notified Container Ship Management that the agreement between them will not be renewed when it expires at the end of this year.

“Between now and December 31st Container Ship Management will continue to be your primary contact for any day to day business relating to BCL. There will be many changes over the next few months but CSM will do their best to ensure that your level of service is not negatively impacted.”

Tjerk Neijmeijer, vice president of administration for CSM, added: “As of next year CSM will not be involved in the management or daily businesses of BCL or Neptune.

“That is all we can say at the moment.”
Source: Bermuda Sun