This will reply to your letter of July 1, 1959, in which you requested certain information from Lykes Bros, Steamship Co., Inc. in connection with your study as to the necessity for continuance of the government-owned-and-operated Panama Line. (1) Schedule of sailings, etc. In the past, Lykes Bros. Steamship Co., Inc. has scheduled two sailings per month from U. S. West-Gulf ports to Cristobal, with U. S.-flag vessels of the C-1-B type. The itinerary of these vessels normally includes a number of other ports on Trade Route 19 (U. S. Gulf Caribbean and East Coast of Mexico) prior to Cristobal, and transit time from the last Gulf port of loading to Cristobal is approximately 20 to 22 days. Because of diminishing cargo offerings to Lykes, its Cristobal service was placed upon an "inducement basis" in early 1958. (2) Cargo capacity. Lykes' vessels would have ample space available for the carriage of general cargo were such cargo available. Our free space is approximately 3000 to 4000 tons per vessel. In addition, Lykes' vessels have 2500 to 2600 cubic feet of chilled and freezer space, subject to special booking. (3) Passenger capacity and rates. Lykes' vessels carry 12 passengers. Because of their outbound itinerary, calling first at other ports on Trade Route 19, the rate to Cristobal is $365.00. The rate from Cristobal to the West Gulf is $130.00 per adult passenger. (4) Plans for expansion. This of necessity must depend upon the traffic situation. If cargo justifies, Lykes owns sufficient vessels to increase and improve its service. (5) Willingness to handle Panama Canal Company cargoes at MSTS rates. Lykes would be willing to accept Panama Canal Company cargoes at MSTS rates. The foregoing applies only to Lykes' own service. In addition, Lykes acts as agent for Gulf & South American Steamship Co., Inc., which operates U. S.-flag vessels in a berth service between United States Gulf ports and the West Coast of South America via the Panama Canal. As part of that service, Gulf & South American carries passengers between Gulf and Canal Zone ports, and has pending before the Federal Maritime Board an application for permission to provide cargo service between the same ports. On June 17, 1959, following a hearing, an examiner of the Federal Maritime Board recommended the Board grant that application, and the matter is now awaiting oral argument and final decision by the Board. Because of its obvious relevance to your study, I am also submitting to you information with respect to Gulf & South American Steamship Co.'s passenger service and its proposed cargo service between the U. S. Gulf and the Canal Zone. (1) Schedule of sailings, etc. Upon favorable action by the Federal Maritime Board in the pending proceeding, Gulf & South American Steamship Co., Inc. would provide service every 11 days from U. S. Gulf ports (Galveston, Houston, Mobile and New Orleans, and other Gulf ports as cargo offerings warrant) to Cristobal and Balboa, Canal Zone. That service would be provided with U. S.-flag C-2 type freighters, calling direct at Cristobal from the last Gulf port of loading. Transit time from New Orleans to Cristobal is four days. (2) Cargo capacity. Gulf & South American Steamship Co., Inc. has ample space available for Canal Zone cargo. Gulf & South American Steamship Co.'s last 8 vessels have each averaged 3985 long tons short of being full on sailing from the last U. S. Gulf port (the period ending approximately July 1, 1959). The corresponding cubic figure is 225,500 cubic feet. The free space mentioned above is for dry cargo only. Gulf & South American Steamship Co., Inc. does not have chilled or freezer space in its present vessels. (3) Passenger capacity and rates. Passenger service available to the Canal Zone, that is, unsold leaving the U. S. Gulf, has averaged 7 berths on each of the past 3 sailings. Gulf & South American Steamship Co.'s passenger rate from the Gulf to Panama is $130.00 one way or $324.00 round trip. (4) Plans for expansion. Under its contract with the Board, Gulf & South American Steamship Co., Inc. is committed to replace its present five C-2's in the early 1960's with 5 new vessels, each approximately 15 per cent larger. These new vessels will be airconditioned throughout, will have approximately 15,000 cubic feet of refrigerated space, liquid cargo tanks, and the most modern gear and cargo handling devices. Their speed will be 18 knots as against 15.5 knots for the present C-2's. This will reduce transit time from New Orleans to Cristobal to 3 days and a few hours. Service with the new vessels will be every 10 days. (5) Willingness to handle Panama Canal Company cargoes at MSTS rates. I am advised by Gulf & South American Steamship Co., Inc. that it will be ready to enter into a contract with the Panama Canal Company to handle its cargo at whatever rates are set up by a majority of the carriers. If these rates are those currently set by the MSTS (with whom G&SA also hopes to contract), that is acceptable to Gulf & South American Steamship Co., Inc. If we can be of further assistance, please advise. |