Coastal and Great Lakes Shipping

The US coastal and Great Lakes shipping industry includes about 850 companies with combined annual revenue of $7 billion. Major companies include Horizon Lines, Matson Navigation, and American Steamship. The industry is highly concentrated: the 50 largest companies account for 85 percent of industry revenue.

Coastal ("coastwise") shipping involves the freight transport of cargo within 20 miles of the Atlantic, Pacific, and Gulf Coasts; between the US mainland and Puerto Rico, Alaska, Hawaii, and other US Pacific Islands; and between US coasts by way of the Panama Canal. Great Lakes ("lakewise") shipping is the transport of freight among the five US Great Lakes and along the Saint Lawrence Seaway System.

Deep-sea shipping to foreign ports and inland transport along US rivers aren't included in this industry.

COMPETITIVE LANDSCAPE

Demand is driven primarily by the level of petroleum refining, coal use, and need for scrap metal and iron ore. The profitability of individual companies depends on efficient operations and a good safety record. Large companies have advantages in handling a broad range of cargo and diversifying freight and logistics operations. Small companies can compete effectively by transporting unusual cargo and offering excellent customer service. Average annual revenue per worker is nearly $250,000.

Coastal and Great Lakes shipping competes directly against railroads, pipelines, and trucks to transport cargo and bulk commodities.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include self-propelled coastal freight shipping (70 percent of industry revenue); barge freight ...