18 Juli 2013

[180713.EN.SEA] Crowley Muscled Out of Bahamas by MSC: Local Port Development Chief

JACKSONVILLE's Crowley Shipping's decision to exit the Bahamian market was driven "110 per cent by competition" from Geneva-based Mediterranean Shipping Co (MSC), according to Arawak Port Development Company (APD) chief executive Michael Maura.

While revealing that the collective cargo capacity to Nassau was currently 52 per cent empty, Mr Maura told the Bahamas Tribune that Crowley's pull-out had been prompted by its "deeper pocketed" rival, MSC, starting a direct Jacksonville-Nassau service of its own.

Disclosing that Crowley had informed him it had not made a profit on its Nassau services since 2006, Mr Maura added that the company had not been able to grow its Bahamas' shipping market share beyond 17-18 per cent during 19 years.

Noting that Crowley had also admitted to him that its shipping rates were now four per cent less than they were in 2006, the APD chief indicated that overall market conditions, together with the increased competition from MSC, were responsible for its move.

"In an effort to maximise the utilisation of its vessel, MSC is making sales calls on suppliers in the north Florida and southeast US and offering rates likely lower than those offered by Crowley," said Mr Maura.


Source : HKSG, 16.07.13.

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