by Richard Jenkins » March 10, 2011, 9:58 am
Sounds like they're still weighing their options at this point. Obviously they gain some capacity with the Kuber barges, but did they get Kuber's cargo contracts along with them? If so, they may not make up completely for the loss of Maumee's capacity. As the economy improves, they will most likely need to add new capacity anyway. Then the big question becomes, slap a band-aid on the Maumee, or invest in the longer-term rebuild of the CTC #1?
There's also the distinct possibility that other suitable boats will go on the market in the very near future. Will ASC sell off their steamers? What will Algoma do with the Canadian Transfer or James Norris, or longer term with the Algorail or Algoway? Will either of these fleets sell them a boat at all? What about the American Republic when her lease expires?
Either way, the cost of keeping Maumee in layup for a year or two while they wait and see what transpires is going to be less than the cost of buying another ship, even at scrap value.
Sounds like they're still weighing their options at this point. Obviously they gain some capacity with the Kuber barges, but did they get Kuber's cargo contracts along with them? If so, they may not make up completely for the loss of Maumee's capacity. As the economy improves, they will most likely need to add new capacity anyway. Then the big question becomes, slap a band-aid on the Maumee, or invest in the longer-term rebuild of the CTC #1?
There's also the distinct possibility that other suitable boats will go on the market in the very near future. Will ASC sell off their steamers? What will Algoma do with the Canadian Transfer or James Norris, or longer term with the Algorail or Algoway? Will either of these fleets sell them a boat at all? What about the American Republic when her lease expires?
Either way, the cost of keeping Maumee in layup for a year or two while they wait and see what transpires is going to be less than the cost of buying another ship, even at scrap value.