Crowley sees higher 3rd quarter liner profits, rates

Crowley sees higher 3rd quarter liner profits, rates    Crowley Liner Services’ operating income rose to $4.2 million in the third quarter, from $3.2 million a year earlier, as the Jacksonville, Fla.-based operator enjoyed a 9.5 percent year-on-year increase in average revenue per TEU.
   The latest result, reported by parent company Crowley Maritime Corp., still represents a modest liner profit margin of 2.7 percent of revenues, up from 2.2 percent in the third quarter.
   Operating revenues from liner services, including those from logistics activities, increased 8 percent to $158 million the third quarter, from $146.4 million in the same quarter a year ago.
   “The increase is primarily attributable to a 2.2 percent increase in container and non-container volume, a 9.5 percent increase in average revenue per twenty-foot equivalent unit, or TEU ' and an increase of 14.2 percent in other logistical service revenues,” Crowley said.
   The shipping group said the average revenue increase was a result of two factors: rate increases for its services between the United States and Puerto Rico and between the United States and certain Caribbean Islands and the Bahamas, and increases in fuel surcharges.
   Despite the recent disruptions caused by hurricanes in the Caribbean region and Florida, Crowley’s liner volume rose to 146,072 TEUs in the third quarter from 142,948 TEUs a year earlier.
   “During the third quarter of 2004, there were delayed voyages in our service between the United States and Puerto Rico as a result of hurricanes,” Crowley said. “These voyages would have generated approximately $4.1 million of revenue.” The company expects its fourth-quarter revenues will be favorably impacted by additional voyages.
   Liner operating expenses for the third quarter increased 7 percent to $144.6 million, with average operating cost per TEU decreasing slightly.
   Crowley Maritime’s activities other than liner shipping posted mixed results in the third quarter.
   Its oil and chemical distribution and transportation services arm saw a decline in its operating income to $9.5 million from $12.5 million. The company’s ship assist and towage arm increased its operating income to $2.6 million from $2.4 million.
   Crowley Maritime’s group-wide operating income declined to $18.3 million from $18.5 million, and its net income dropped to $7.5 million from $7.6 million. Group-wide revenue was $273.3 million down from $274.5 million.