[210611.EN.SEA] TCC In Bankruptcy Court, Cites Customer Failure To Meet Volume Vows

TRANSPACIFIC carrier, The Containership Company, the exciting new start-up of April 2010 with its no-frills port-to-port service, has filed for Chapter 15 bankruptcy protection of its US assets.

The Norwegian-registered company ascribed its financial problems to increased competition on eastbound trades plunging freight rates as cargo volumes plummeted, reported London's Containerisation International.

"A number of customers failed to meet minimum quantity commitments. To further worsen the problem, the company was adversely affected by increased fuel prices," said a court document statement from TCC whose demise came less than a year since it launched its Great Dragon Service from Taicang, near Shanghai, to Los Angeles.

The low-cost carrier intends to seek financial compensation through the courts of 83 shippers who failed to honour contracts.

Source : HKSG, 11.06.11.