has been harpooned by a third ship entering the fray.

Tri-Star Bermuda Line claims it can offer more competitive freight rates for importers on Longtail Express than Bermuda Container Line and Bermuda International Shipping Ltd.

The claim comes on the heels of the Bermuda Discussion Agreement between BISL and BCL announced last week.

Both companies agreed that they would stabilise freight rates and restore them to a level of profitability after years of losses because of price cuts. They feared that they if they continued with a rate war one of the two would eventually be forced out of business.

The agreement between BCL, which operates the Oleander , and BISL, which runs the Bermuda Islander , was expected to signal an increase in rates eventually leading to higher prices in stores.

But the companies may not have figured on the Longtail Express sailing into the picture, under local shipping agents John S. Darrell.

Mr. Donald MacPherson, at John S. Darrell, says that the fixed rates for the Longtail Express will attract importers away from the sliding scales of the other two companies.

He said container rates, which will hold firm until March, 1994, are $1,500 for a 20-foot dry container and $1,900 for a refrigerated container. This rate applies for anything that is imported.

BISL and BCL charge different rates for different imported goods. For example, foodstuffs cost $2,250 plus extras in a refrigerated container and $2,000 in a 20-foot dry container, from New York to Bermuda.

Mr. MacPherson added: "Their rates run from around $1,500 to $2,500 depending on what is being imported. Our rates stay the same whatever is in the containers.'' Tri-Star, of Portsmouth, Virginia, was chosen by the US Navy in April to supply ocean freight services from Norfolk to the US Naval Air Station in Bermuda, after the original contractor defaulted.

Mr. MacPherson said: "Operating as Tri-Star Bermuda Line, with the Longtail Express , it was already aware of the decline in the US Naval Air Station's cargo needs and immediately took interest in the commercial market with an eye to taking advantage of the container space which is becoming increasingly available.

"On May 4, Longtail Express made its first call into Hamilton with refrigerated containers.

"Since then it has been slipping quietly into No.

7 Dock every two weeks with commercial cargo for local importers, having earlier discharged its military cargo in St. George's.'' He stressed that the operation had been kept deliberately low-key, the main reason being that the original military contract was up for renewal next month.

President of Tri-Star marine, Mr. Steven Miceli announced that the contract had now been renewed until the end of March.

Mr.

Miceli said he not only assured local importers that Longtail Express would continue to provide service out of Norfolk but "guaranteed space availability''.

The ship is an 192-foot offshore supply vessel converted to carry 36 40-foot containers or 72 20-foot containers.

In reply to criticism that the ship was small and low to the water, Mr.

MacPherson said: "She has been in continuous service since 1984. She may not look like the Oleander but she sure gets the job done.''