Bermuda Container Line Releases Interim Report

Hamilton, Bermuda: 20 September 2005 - Bermuda Container Line Ltd. released to the Bermuda Stock Exchange (BSX) the following Six-Month Interim Report for the period ending 30 June 2005:

Bermuda Container Line's net earnings for the first six months of 2005 declined by $615,000 or 27% compared to the first six months of 2004.  This decline in earnings was caused by a combination of lower cargo volumes and, most significantly, higher cost levels.

Both the service from New Jersey and the one from Florida recorded decreased cargo volumes in the first half of 2005 compared to 2004.  The New Jersey service experienced a fairly large decline in container volume but this was partly offset by an increased in the volume of Ro/Ro cargo giving an overall decline in cargo volume measured in slots of 1.6%.  The Florida service experienced declines in both containerized and break-bulk cargo volumes.  The decline in cargo volume negatively impacted on revenue but this was partly off-set by a general freight rate increase effective the 1^st April; this was the first general rate increase since 1997.  Overall, revenue declined by $225,500 or 1.43%.

Expenses in total increased by $390,000 or 2.9% and this was all due to increased cost levels. The letter sent out with the May 2005 dividend warned shareholders about the rising cost levels and the seasons for these and the results are quite clear in these interim figures.  An example, the most dramatic and one we are all well aware of is fuel costs.  Gross fuel costs increased by $255,000 and though the fuel surcharge rates were increased the net fuel costs absorbed by the Company increased by $164,000 or 63%.

Your Company will be faced with further cost increases in the second half of the year.  Unfortunately the third quarter will also be impacted by the one-off and unplanned for costs associated with the engine breakdown experienced by both the "Somers Isles" and the "Oleander".