Isreal's Zim Integrated Shipping Services has said it is in arbitration over a US$151 million claim related to joint venture agreements with an unnamed shipping line, reportedly China Shipping Container Lines (CSCL).
The dispute arises from an agreement last September between the two carriers "following the termination of Zim's Far East/Europe 'East-West Express' service," AXS-Alphaliner reported.
"Zim had increased its slot charter agreement with CSCL on the Asia/Europe AEX1 loop, to total 3,750TEU weekly beginning in October last year," said the Paris-based agency.
Zim reportedly decided that it could not meet the minimum volume requirement, having accumulated losses in 2008 and the first quarter of 2009.
"With volumes declining rapidly in the Asia/Europe trade, Zim would not have been able to fill its original allocation on the AEX1 with CSCL, especially with the additional slots taken on the Grand Alliance," the report said.
CSCL has since announced a new partnership with Taiwan's Evergreen Line, and part of that deal is that Evergreen will charter slots on the AEX1 starting from mid-June.
Zim has also started to charter slots on four Grand Alliance services between Europe and Asia, while Grand Alliance members are taking slots on Zim's East Med Express service (EMX).
Tracey Jia
