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

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

Comments

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