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Coastal & Great Lakes Freight Transportation
First Research, April 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US coastal and Great Lakes shipping industry includes about 500 companies with combined annual revenue of about $8 billion. Major companies include Horizon Lines, Matson Navigation, American Steamship Company, and Rand Logistics. The industry is highly concentrated: the 50 largest companies account for over 80 percent of industry revenue.
Coastal ('coastwise') shipping involves the freight transport of cargo within 20 miles of the Atlantic, Pacific, and Gulf Coasts; between the US mainland and Puerto Rico, Alaska, Hawaii, and other US Pacific Islands; and between US coasts by way of the Panama Canal. Great Lakes ('lakewise') shipping is the transport of freight among the five US Great Lakes and along the Saint Lawrence Seaway System.
Deep sea shipping to foreign ports and inland transport along US rivers aren't included in this industry. Deep sea shipping and inland barge transportation are covered in separate industry profiles.
COMPETITIVE LANDSCAPE
Demand is driven primarily by demand from manufacturers for commodities such as coal, crude oil, grain, iron ore, refined petroleum products, and scrap metal. The profitability of individual companies depends on efficient operations and a good safety record. Large companies have advantages in handling a broad range of cargo and diversifying freight and logistics operations. Small companies can compete effectively by transporting unusual cargo and offering excellent customer service. The industry is capital-intensive: average annual revenue per worker is about $360,000....
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