SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549

                                 FORM 8-K

                              CURRENT REPORT
                  Pursuant to Section 13 or 15(d) of the
                      Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) December 30, 1998


                   INTERNATIONAL SHIPHOLDING CORPORATION
            (Exact name of registrant as specified in its charter)


        Delaware                       2-63322                36-2989662
(State or other jurisdiction    (Commission File Number)    (IRS Employer
     of incorporation)                                     Identification No.)


    650 Poydras Street, New Orleans, Louisiana               70130
     (Address of principal executive offices)              (Zip Code)



                              (504) 529-5461
             (Registrant's telephone number, including area code)


                          Not applicable
        (Former name or former address, if changed since last report.)

ITEM 5.    OTHER EVENTS

     On December 30, 1998, the Company issued the following press release:

     NEW  ORLEANS, LOUISIANA  -      On  December 15, 1998, the Company was
notified that  Seminole  Electric Cooperative, Inc. ("SECI") had filed suit
against the Company's wholly  owned  subsidiary,  Central  Gulf Lines, Inc.
("CGL"), seeking a declaratory judgment that SECI is entitled  to terminate
its performance under a long-term coal transportation agreement  with  CGL,
subject to SECI's obligation to pay "fair and lawful damages" to CGL.  SECI
has  also asked the court to determine the amount of damages payable to CGL
as a result  of  termination of its performance.  The suit was filed in the
United States District  Court  for  the  Middle  District  of Florida (Case
Number 98-2561-CIV-T-25B).

     The  suit  is  in connection with an agreement entered into  in  1981,
which provides for CGL  to transport for SECI a minimum of 2.7 million tons
of coal annually through  September  2004 by barge from Mt. Vernon, Indiana
to Port St. Joe, Florida.  The agreement requires SECI to pay for the water
transportation segment of the contract  on  a  "cost-plus"  basis  and  the
transfer from barge to rail on a rate basis, and SECI alleges that the cost
of  the  contract  exceeds  the  total cost of currently available all-rail
transportation.  After failing to negotiate a buy-out of the agreement with
CGL,  SECI  notified CGL on December  15,  1998  that  it  was  terminating
performance   under    the    agreement,    commencing   alternative   rail
transportation,  and  commencing  litigation  to  confirm  its  ability  to
terminate performance and to establish the damages  owed to CGL as a result
of such termination.  SECI's complaint states that it  is  "prepared to pay
damages  to  CGL  properly  calculated  to return to CGL the value  of  the
profits  that CGL otherwise would earn over  the  remaining  term"  of  the
agreement.

     CGL has  disputed SECI's right to terminate performance and has served
a demand for arbitration  pursuant  to  the terms of the agreement in which
CGL seeks specific performance of the agreement  for its remaining six-year
term,  and  in  the  alternative,  damages.   Because  of  SECI's  admitted
obligation  to  reimburse  CGL for its lost profits, the Company  does  not
believe that this dispute will  have  a  material  adverse  effect  on  its
financial condition or results of operations, even if SECI is successful in
terminating its performance under the agreement.

ITEM 7.   FINANCIAL STATEMENTS AND EXHIBITS.

     (a)  Not applicable.

     (b)  Exhibits - none.

                            SIGNATURES

     Pursuant  to  the requirements of the Securities Exchange Act of 1934,
the Company has duly  caused  this report to be signed on its behalf by the
undersigned hereunto duly authorized.

                              INTERNATIONAL SHIPHOLDING CORPORATION


                              By:     /S/ GARY L. FERGUSON
                                  ------------------------------
                                          Gary L. Ferguson
                                         Vice President and
                                       Chief Financial Officer

Dated:  December 30, 1998