ISC to end Forest LineÆs LASH service
International Shipholding Corp. said it would discontinue the transatlantic “lighter aboard ship,” or LASH service, offered under the Forest Line name at the end of the year.
ISC the service was continuing to negatively impact the company’s overall results and that the market for eastbound cargo has been challenging.
“As a result of the disappointing results, today the board of directors agreed to discontinue the utilization of the international flag LASH vessel and the remaining 400 LASH barges by the end of 2007,” ISC said as it reported its second quarter results Wednesday.
ISC’s Forest Line is the last operator of the unusual barge or “lighter” carrying ships in the United States. The company had already ended its U.S.-flag LASH service that had been offered by Waterman Line. ISC said its current quarter's results have been boosted from gains on the sale of the U.S.-flag LASH vessel and LASH barges Waterman once used.
ISC reported second quarter net income of $6.95 million compared to a net loss of $6.46 million in the year-earlier period. Revenue was $56.3 million down from $64.6 million in the same 2006 period.
Excluding the discontinued service gains, net income from continuing operations was $3.0 million for the quarter.
The company said its time charter segment, on the strength of higher volumes of supplemental cargoes and the operation of its U.S.-flag coal carrier, reported improved results over the comparable 2006 quarterly period.
Results of the company’s contract of affreightment segment were slightly lower in the second quarter due to reduced tonnage levels.
ISC operates a Central Gulf Railway, a U.S./Mexico railcar ferry, to which it has been adding second decks. The service, which recently moved from New Orleans to Mobile, reported a greater loss in the second quarter due to the vessels experiencing out-of-service days while preparing for installation of the second decks. One of the vessels was fully operational at the beginning of July with the second deck, while the other vessel is expected to be finished by the end of July.
“Cargo volumes so far on the fully operational vessel have been in line with our projections. We expect progressively improved results as the second deck conversions are phased into the service,” the company said.
ISC to end Forest Line’s LASH service
