Subscribe to our free, weekly email newsletter!

Crowley makes inroads into Puerto Rico with acquisition

By Jeff Berman, Group News Editor
September 09, 2010

In an effort to provide more value-added services to Puerto Rico-based shippers, Crowley Maritime Corporation’s logistics group announced it has acquired Islandwide Air and Ocean.

Financial terms of the deal were not disclosed.

Crowley officials said that this deal will enable the company to offer shippers multiple logistics services, including: ocean and air transportation, trucking, transportation management and warehouse services in Puerto Rico, as well as less-than-container-load (LCL) freight transportation from the U.S. to Puerto Rico from Crowley’s Florida-based warehouses in Miami and Jacksonville and a new Northeast-based consolidation center.

“Crowley is expanding its service offerings into different destinations and the fact that our sister company calls on Puerto Rico on a regular basis, we thought it would be a nice tie-in to offer our existing customer base with a wider breadth of service offerings that they have asked us to do,” said Carlos Rice, Crowley vice president of supply chain services, in an interview.

That mindset led to the decision for Crowley to enter the Puerto Rican market, explained Rice, in order to fulfill the needs of its customer base.

While he declined to provide a specific number, Rice said Islandwide’s customer base is comprised of dozens of shippers doing business in Puerto Rico. He said Crowley will retain the entire customer base Islandwide Air and Ocean was servicing, coupled with an additional customer base Crowley will be bringing to the table.

Crowley spokesman Mark Miller said the company’s Liner Services group, which transports container loads to Puerto Rico has thousands of customers.

In terms of benefits of this deal for Puerto Rico-based shippers, Rice said that as shippers continue to demand improved delivery times and lower costs, Crowley is offering value-added services to meet shippers’ needs like inventory management, distribution services, order processing, and express service from Puerto Rico.

“These are some of the wider service offerings we are able to offer our customer base, and in cooperation with them as a mutual understanding that we can meet their cost objectives by providing more today than they were accustomed to receiving from different suppliers,” said Rice. “We can now offer that in-house and bring them a one-stop shop.”

Regarding personnel, Rice said the entire Islandwide employee structure has been absorbed by Crowley.

“Clearly this partnership adds significant value for all our customers in terms of providing real solutions at all levels of the supply chain, from manufacturing to the final consumer and every step in between,” said Pedro J. Rosaly, CEO of Islandwide, in a statement.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA