This week's arrival of the newly-christened cargo vessel, Bermuda Islander, is a sign of the stability of the container ship market.

Container rates today approximate those of the mid-1980s before freight wars brought turmoil and rate slashing to the market.

The Bermuda Islander inaugurated service this week for Bermuda International Shipping Ltd. (BISL) with a voyage out of Salem, New Jersey, with some 72 containers. With a capacity of 207, it will provide some measure of competition for Bermuda Container Line's ship, Oleander.

The Bermuda Islander was built specifically for the Bermuda trade and the weekly Salem to Bermuda run. BISL has a six year time charter on the vessel from Dutch owner, Armawa Shipping & Trading B.V.

Said Mr. Henry Hayward, president of ship's agent, Meyer Agencies: "I don't think that you can be unrealistic about freight rates because lines could end up going bankrupt.

"The current level of competition keeps the rates to a realistic level, so one line with a monopoly couldn't jack the rates up as they wanted.

"Our new ship is an indicator that common sense has come in and it would appear that the freight war, as far as rate cutting, is over. But the real emphasis these days is toward more service. I doubt that there would be any rate increases in the near future.'' Mr. Geoffrey Frith, CEO of Bermuda Container Line agreed.

"I don't see any factor on the horizon that will cause rates to change either way,'' said Mr. Frith.

Mr. Hayward added: "After 10 years, our firm has progressed to the point where we needed a new vessel. It was a big step for the company. We've committed ourselves to being the other carrier to service Bermuda beside BCL.

"With the old, six year old ship, it was a push to make the seven day turn around between Salem, New Jersey and Bermuda. We made it nearly 95 percent of the time, but that was pushing the ship all the way, with little in the way of allowances for bad weather.

"The old ship had a top speed of about 11 knots. The new one is 14 knots.

That means we can make better time, even allowing for bad weather. It turns out that it is cost effective building a 200 teu ship, as opposed to a 100 teu ship.

"So the old one, which was 100 teu, has now been replaced by a 207 teu ship.

The old one has changed its name and was put out to the Far East.'' BERMUDA ISLANDER -- The new vessel has a capacity of 207 containers.