The ocean carrier, which expects to purchase SeaFreight “on or about October 31,” asked the Federal Maritime Commission for an exemption to regulatory rules that would simplify the transfer of about 500 service contracts once the deal is completed.
Crowley expects to acquire the assets of Miami-based SeaFreight Line on or about Oct. 31.
In a filing with the Federal Maritime Commission, the company said the acquisition of SeaFreight by Crowley Caribbean Services and Crowley Latin America Services will include about 500 service contracts between SeaFreight and its customers.
Crowley has petitioned for an exemption from FMC rules requiring individual service contract amendments as part of the purchase.
In a letter to employees, Crowley said both companies are currently working through the due diligence process.
“This acquisition represents a great opportunity for Crowley to grow its footprint and capabilities in the Caribbean Basin,” said Steve Collar, Crowley senior vice president and general manager, Caribbean and Latin America services.
Roland Malins-Smith, the president of SeaFreight told his employees that “our industry is undergoing fundamental change which emphasizes the importance of scale and the wisdom of consolidation.”
In 2014, TOTE Maritime acquired Tropical Shipping, a specialist in the Caribbean trade.
“In accepting the Crowley offer, SeaFreight has chosen to work with a like-minded group which shares our commitment to service excellence, integrity and focus on the wider Caribbean. We believe that this move is in the best interest of our customers and our employees,” said Malins-Smith
SeaFreight’s website says it offers “Weekly fixed-day service between Jacksonville FL, Port Everglades, FL, Aruba, Barbados, Bonaire, Costa Rica, Curacao, Grand Cayman, Grenada, Guyana, Haiti, Margarita, Montego Bay, Nicaragua, Panama, St. Lucia, St. Vincent, Suriname, Trinidad & La Guaira Venezuela and twice weekly service to Kingston, Jamaica.”
Crowley wants the FMC to permit the submission of a ‘‘universal notice to the commission and to all affected service contract parties in lieu of requiring individual filings reflecting amendment by mutual agreement.’’
In addition, because existing tariffs must be renumbered and republished due to this acquisition, instead of amending each individual contract, Crowley is seeking a waiver to permit insertion of notices in existing Seafreight tariffs and in new “Crowley d/b/a Seafreight” tariffs.
Crowley also said it will provide each service contract shipper counter-party with electronic notice of this corporate change.
Crowley sets tentative date for SeaFreight acquisition
