ASC Sold

[Guest]

The federal government won't object.

We're talking about a company that's currently operating 3 barges and two freighters on the US side. Not exactly a giant even in 2020. And their ships primarily service smaller customers that can't be adequately handled by larger vessels.

While ASC still does a little bit of river business, this isn't so much an elimination of competition as it is Lower Lakes expanding into the mainstream trade on the US side of the lakes for the first time.

Traditionally they've stuck with the fringes of the market. They handle small customers that are often located in the narrow confines of rivers, in trades with comparatively high expenses and low profit margins.

They've had to work to keep costs under control through the years to make the formula work with customers that the big guys like USS Great Lakes Fleet often didn't want to be bothered with any longer.

[Charlie]

this is my 2 cents

If you remember when ASC bought out Ress & Garland the feds did step in and they had to sell so much to get under the feds rules

Also

From people I know that worked, staffed retired from ASC going as far back as when GATX bought ASC there were problems with in the company.through the years as long as ASC was making big money to offset GATX losses they were OK and business was good.

When you start putting people in the office that had no ship experience to run the company you start to have problems..... look at what happened with Oglebay Norton Corporation for example.

Shipping on the LAKES is and has been going down hill. Markets have changed, what people/industry needs are changing, a lot of jobs in the heavy industry's have left for cheepper markets

Today we see each month cargo totals are going down and down
cost of transport and maintaining that ship is climbing and the money you make on a load is just covering cost.

this was bound to happen just as it has in other industries. the fit will make it and the foolish will no longer be there.

ASC had high over head due to how they ran there operation, just like rand has done I am sure if you look at the other companies you will fine a streamlined company or they will be next to sink in to history

I don't think the feds will give there ok to the deal because the new company will be too big for competition

Just my 2 cents worth
I hope this gets printed
charlie

[Guest]

Will be interesting to see if the boats remain union for unlicensed crew as ASC is SIU contracted

[ashland69]

The federal government will review the acquisition before giving it's approval. If the US Justice Department has any concerns with monopoly, then they will block it. This acquisition will take months, though.

Might be a wildride!

So all the rumours of GATX selling the ASC fleet back in the Fall were correct, but the purchaser wasn't Algoma as the rumours were saying.

If the feds don't approve the sale, perhaps GLF and/or Interlake will pick up two or three of the 1000-footers. Algoma may still get one or two of the river class. And, finally, some the current tonnage at LLT and GRN may go to the boneyard. Yea, this is going to be a wild ride for everybody, for sure.

[Denny]

Just some ideas and suggestions only for renames IF there’s any to which I’m sure there will be in time. Since ASC if I’m correct was just acquired by GRN, why not go back to the basics of renames for a few of the boats? For example, what about Wolverine and Buckeye as we have not had any ships since the days of Oglebay Norton with those names! And let’s not forget here that when ON sold their fleet out in 2006, the three 630s if you will got bought by a separate firm and Wolverine was kept at least until it was sold later to LLT and renamed Robert S. Pierson as we know it today. Why not go with Chicago or Cleveland perhaps even Toledo for port names. In all likelihood the original St. Clair is done so why not have a new St. Clair on the lakes since LLT/GRN names some of their boats after rivers. As for Native American names, what about the name Chippewa? Again just a few suggestions only. I agree and think the Burns and Indiana Harbor names could stay since each are named after ports. What about keeping at least American Mariner and Spirit to honor all Mariners that sail and Spirit for the Spirits of all the sailors and Spirit of the companies and America? Makes sense to me!

[Guest]

I doubt there will be much change at first. Well other than paint colors. That 260 million wasn’t just the boats. They also bought the order book.

[Guest]

How the mighty have fallen for ASC to be purchased by Rand. Does anyone know if Rand actually had the $$ for such a move or was it their parent company providing the dollars?

Either way, a sad end to a century old name on the lakes. I sailed on the Calumet a few years back and she was in dire shape with no apparent concern from HQ. Hopefully that same attitude doesnt carry over to the ASC fleet.

[hausen]

Here’s hoping this still means a return to service for Valo (American Valor / Armco). Wonder what kind of shape her hull is in compared to the Boland, White, and American Mariner. If she’s in good condition then she’s got a nice fuel-efficient hull form that would be a strong candidate for repowering.

Also curious whether any of those 78’ beam ASC ships get transferred to LLT’s Canadian fleet for seaway trading.

[Brian Ferguson]

Are there enough river names left to re-name a fleet of ships? I thought ASC my be tipping their cards when they didn't instantly re-name a ship Adam E. Cornelius when the Compass was sold.

[Channel Fever]

I see that GATX got $260 million for was it 9 or 10 boats including 5 footers. Yes?

[Guest]

ASC represents only 3.5% of GATX business assets and volume. Seems they got a good price considering the shrinking shipping industry on the US side. Sad to see a 113 year old company disappear but time moves on. I would anticipate some more vessels at the wall or scrappers this year. Big hit with no more iron making at Zug.

[Under_Pressure]

What’s everyone’s thought that maybe the St Clair burning moved this as happening sooner rather than later?

If anything, St Clair burning probably helped the short term financial situation. From this article: https://www.marinelog.com/coastal/inlan ... steamship/

"ASC reported segment profit of $46.1 million for 2019 (including a one-time gain of $10.5 million)"

It sounds like the St Clair payout increased their 2019 profit by about 30% (looking at it another way, accounted for about 25% of their profit). Of course, the flip side is that, assuming it was a hull that made money, in the long term you are worse off by not having it (and getting an insurance payout that is nowhere close to replacement cost). However, reality is that ASC had been actively working to reduce its fleet in the years prior, so clearly they were not desperate for hulls because there was so much profitable cargo just waiting for them to have capacity to move it.

[Mr Link]

Didn't Rand Logistics file for Chapter 11 Bankruptcy just 2 years ago? I like to know how you can go from Bankruptcy protection to purchasing ASC in 2 years?

You shed most of your debt via bankruptcy and then get a large private equity firm (American Industrial Partners) to buy you out.

[Guest]

Didn't Rand Logistics file for Chapter 11 Bankruptcy just 2 years ago? I like to know how you can go from Bankruptcy protection to purchasing ASC in 2 years?

[Chris M]

What would the St Clair fire have to do with the sale?

[Guest]

What’s everyone’s thought that maybe the St Clair burning moved this as happening sooner rather than later?

[Guest]

On the US side you now have; Central Marine, Great Lakes Fleet, Interlake Steamship, Van Enkenvort Tug and Barge and of course Lower Lakes or whatever they call themselves in the US. So a totsl of 3 fleets, if the acquisition is approved.

I had to double check that hadn't over slept and today was April 1st!!

[Guest]

The federal government will review the acquisition before giving it's approval. If the US Justice Department has any concerns with monopoly, then they will block it. This acquisition will take months, though.

Might be a wildride!

So all the rumours of GATX selling the ASC fleet back in the Fall were correct, but the purchaser wasn't Algoma as the rumours were saying.

[Guest]

Incredible. Simply incredible.

[Guest]

Not that the federal gov't has done anything like this in 40 years, but does anyone think this could be blocked due to anti-trust concerns?