An addictive business
Twenty five years ago, Michael Cadden Troy was the new kid on the non-vessel-operating common carrier block, and the neighborhood wasn't particularly friendly to upstarts.
Troy, born and raised in Brooklyn, N.Y., never backed down to the competition and remained determined to build his name in the NVO industry.
'We're one of the most competitive NVOs,' Troy said. 'You don't stay in this business as a neutral NVO by not being good at what you do.'
While he gained some ocean shipping experience working for Maersk Line from 1981 to 1982, Troy mostly credits two men for his business drive ' his father-in-law who challenged him to make a success of himself and Sal Catucci, owner of AID Export Trucking, who charged him with the task of starting an NVO operation in 1984.
| Troy |
For 13 years, the NVO operated under the name Troy Catucci Line, starting with less-than-containerload shipments to Asia, and gradually expanding to Europe, the Middle East and Africa.
Troy himself was on the frontlines, and accountable to the owners during these early years. He had to prove that he could make the NVO successful. This required him to make numerous trips to Asia and Europe to build the business.
In 1989, Troy Catucci Line entered the full-containerload business at the encouragement of then emerging liner carrier Mediterranean Shipping Co., which relied heavily on NVOs to fill its ships.
Troy took the next big step in his career in 1997 by buying out the NVO operation from the Catucci family. 'I took all the aspects that I liked about the other companies I had worked for, took off the rough edges, and created Troy Container Line,' he told American Shipper in an earlier interview.
Today, Troy Container Line provides service to about 2,000 customers to nearly 700 destinations worldwide. The company handles about 50,000 TEUs of inbound and outbound LCL and FCL cargo under contract with the ocean carriers.
In the United States, Troy Container Line has about 55 employees spread across offices in Red Bank, N.J.; Chicago; and Boston. The company also manages freight through 17 export and 42 import public warehouses throughout the country.
Troy Container Line opened an office in Charlotte, N.C., in October 2008 to cover the South Atlantic. The Charlotte location started offering direct European services from the region during the second quarter of this year.
'I was basically told we were crazy to open a new office during this recession,' Troy said. 'I believe the key to success whether in good or bad times means getting closer to the customer.'
The company works with a select group of agents in overseas markets, including WSA Lines, based in Hong Kong, to cover India and the Far East; Cardinal Maritime in the United Kingdom; and a handful of agents on the European continent.
The company also remains aggressive in its efforts to serve more international destinations. In April, Troy traveled to Brazil to explore new agent relationships. 'It's our goal to begin a north/south service between the United States and Latin America later this year,' he said.
Troy has never favored buying out other NVOs as a way to grow the company. 'We've developed without acquisitions,' he said. 'I'm not saying acquisition is a bad way, but you can't buy people, and that's still the basis of this business.'
Troy Container Line also prides itself on financial soundness. The company funds all its activities from within. 'I'm of the mindset don't rent when you can buy, and don't go into debt when you don't need to.'
The NVO even develops its information systems in-house, and launched a new customer Web site in May. 'Customers say our system is easy to use. It's because we use it too,' Troy said.
While the ocean freight consolidation market is largely in the doldrums due to the global recession, Troy is optimistic that his company can meet its goal of 19 percent growth in 2009. Last year, Troy Container Line posted its best year in terms of volume and revenue.
'We're putting more sales people on the street,' Troy said. 'We're going to increase our marketing particularly in the Southeast and Midwest this year.'
He believes Troy Container Line stands to gain more business through continued consolidation in the NVO industry and the liner carriers reducing their customer service departments and vessel capacity in an effort to better control costs.
What hasn't changed at Troy Container Line in the past 25 years is its dedication to providing neutral NVO services, meaning that it buys container space from liner carriers and retails it back to freight forwarders. 'We respect the fact that we're a focused neutral NVO,' Troy said.
Troy, 52, is still very much a hands-on manager, and stays involved in the day-to-day activities of running the company, even when he's traveling.
'I didn't have a secretary in 1984, and I still don't,' Troy said. 'I check my voice mails and e-mails, and I respond.'
The most difficult part for Troy is realizing that the company continues to run smoothly when he's out of the office. However, he said 'the people in our company know they need to be on top of their game.'
Troy has hired and promoted a number of experienced industry executives to senior management positions.
For example, Patricia Fitzgerald serves as senior vice president. Previously, she was the company's director of international sales and marketing. She worked at other NVOs before coming to Troy Container Lines, including Cargo Connection, Fleet Lines and Independent Cargo Express.
Gopal Roy, vice president of finance, is in charge of fiscal operations, including accounts payable, accounts receivable and export/import freight releases. He joined the company in 1999 after six years heading MSC's freight cashier department in New York, and more than two decades at Corporacion Del Cubre (USA).
'I'm one of those fortunate people who don't have to do this anymore,' Troy said. 'It's more like my hobby now.'
But don't count on Troy stepping away from the industry anytime soon.
'It's a very addictive business,' he said. 'I don't think retirement is in my future.' (Chris Gillis)