Forum for Shareholders of Crowley Maritime Corporation

Forum Home Page

Resolution of Shareholder Interests

In March 2007, the controlling shareholder of Crowley Maritime offered $2,990 per share to buy out public investors, a price equal to 258% of the last traded price of shares when the Forum started in April 2004.

Crowley Home Page

Crowley Archive Reference

 

The article copied below appeared in TradeWinds, the shipping industry publication. The weekly paper and its associated web site provide regular coverage of developments concerning Crowley Maritime and other water transportation companies.

 

 

Crowley units 'stay separate'

 

  

Oakland-based Crowley Maritime has confirmed a consolidation and a reshuffling of top operational management.

 

By Bob Rust, Oslo

published: 29 June 2005

 

But the US-flag shipowner is emphasising continuity even as it confirms the developments previously reported in TradeWinds. (For details, follow first two links to recent articles in right column [see note below].)

An announcment yesterday on Crowley's website cites chairman, chief executive officer Thomas Crowley Jr as underscoring the continuity of relations with commercial and government customers and with its unions.

Crowley said: "Business entities will remain separate with respect to contracting and procurement, technical, operations and finance. Collective bargaining agreements currently in place with our various labour partners for these entities will also remain intact. What will change is an organisational structure that now complements Crowley's corporate safety and quality vision, ensuring consistent implementation of procedures and policies across similar business entities."

The statement apparently has special reference to the upcoming renewal of Crowley's management contracts with the US Maritime Administration (MarAd) for the Ready Reserve Force (RRF). In addition to its original RRF business, Crowley picked up that of several other companies as a result of corporate acquisitions since the last round of contract awards. But these units must maintain independence in respect of certain functions if Crowley is to retain the lion's share when US companies are awarded new RRF contracts at the end of July.

Crowley subsidiaries with RRF operational or agency contracts include Crowley Liner Services, Marine Transport Lines (MTL), Mormac and Intrepid.

The four subsidiaries all have different exclusive collective bargaining agreements with different US labour unions.

Crowley also has management of seven containerships that comprise the US-flag fleets of CP Ships and P&O Nedlloyd. The seven vessels currently receive $14.7m in annual operational subsidies under the US Maritime Security Program (MSP), rising to $18.2m per year at the beginning of October. US government records show that Crowley's Washington lobbyists lobbied Congress for last year's MSP renewal even though Crowley does not directly participate in the programme.
 

Note: For referenced articles, see TradeWinds (print edition), June 24, 2005, "Crowley bracing for streamlining" and TradeWinds (web site), June 24, 2005: "Crowley set to reorganise".

 

The Forum is open to all Crowley shareholders, whether institutional or individual, and to any fiduciaries or professionals concerned with their investment decisions.  Its purpose is to provide shareholders with access to information and a free exchange of views on issues relating to their evaluations of alternatives, as described in the Forum Summary.

There is no charge for participation.  As stated in the Conditions of Participation, participants are expected to make independent use of information obtained through the Forum, subject to the privacy rights of other participants.  It is a Forum rule that participants will not be identified or quoted without their explicit permission.

Inquiries and requests to be included in the Forum's distribution list may be addressed to cwlm@shareholderforum.com.

All material on this web site is published by Gary Lutin, who is responsible for conducting the Forum.