Coastal & Great Lakes Freight Transportation Industry Overview

Excerpt from Coastal & Great Lakes Freight Transportation Report

The US coastal and Great Lakes shipping industry includes about 500 companies with combined annual revenue of about $8 billion. Major companies include Horizon Lines, Matson Navigation, American Steamship Company, and Rand Logistics. The industry is highly concentrated: the 50 largest companies account for over 80 percent of industry revenue.

Competitive Landscape

Demand is driven primarily by demand from manufacturers for commodities such as coal, crude oil, grain, iron ore, refined petroleum products, and scrap metal. 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. The industry is capital-intensive: average annual revenue per worker is about $360,000.

Products, Operations & Technology

Major services include the transportation of bulk liquids and gases, box and pallet freight, intermodal containers, dry bulk, automobiles, and waste. Combined, these segments account for about 70 percent of industry revenue.