Tropical Shipping report lower profit, rates

Tropical Shipping report lower profit, rates    Decreases in traffic volumes and freight rates sent Tropical Shipping’s revenues and operating income down in the third quarter, as the U.S./Caribbean shipping line reported an operating income of $3 million for the latest quarter, as compared to an income of $4.4 million in the third quarter of 2002.
   Revenue per TEU dropped by 2 percent over the same period, to $1,484, from $1,515. Traffic volume decreased by 3 percent, to 42,500 TEUs in the third quarter. Total revenues were off 4 percent, at $63.8 million, as compared to $66.6 million in the third quarter of 2002.
   “Quarter-to-quarter volume declines were due mainly to economic conditions,” said Nicor Inc., the parent company of Tropical. The parent company also reported lower operating costs at its shipping arm in the third quarter.
   Despite the weaker third quarter, operating income at Tropical for the nine months ended Sept. 30 increased to $13.6 million, from $12.4 million in the corresponding period of 2002, as both volumes shipped and average rates increased. The higher volume was due primarily to an acquisition made in April 2002. For the first nine months of the year, average freight rates at Tropical increased slightly, to $1,534 per TEU, from $1,511 in the same period last year.