Crowley’s Puerto Rico Warehouse Designated as Foreign Trade Zone

Crowley Maritime Corporation’s Caribbean logistics unit has recently been granted reclassification of its Puerto Rico warehousing and distribution center to Foreign Trade Zone (FTZ) status. This allows the facility, located in Free Trade Zone #61; Rd 165 KM 2.4, Building 11 in Guaynabo, to receive, store and process cargo without it being subject to formal U.S. Customs entry procedures and payment of duties until the cargo enters the U.S. supply chain and is made available for domestic use and consumption.

Those cargoes being cross-docked or processed at Crowley’s warehouse prior to re-export internationally receive the same treatment as they would moving overseas or outside of the U.S. and its territories – no duties or quota charges and no state, ad valorem or personal property taxes. Additionally, cargo can now remain in Crowley’s FTZ facility for an unlimited amount of time, which is a significant change from the previous 14-day deadline associated with bonded cargoes.

“Becoming a Free Trade Zone allows Crowley to offer additional services and benefits to both domestic and international customers,” said Ayesha Diaz, general manager, logistics. “These expanded capabilities and services allow us to work with new customers that we were not able to serve in the past.”

Under the new FTZ designation, customers who utilize Crowley’s building 11 warehouse for imports, would not be charged quotas or duties on cargo that is re-exported or on expired goods or those deemed defective or damaged. Additionally, in the event the cargo consists of spare parts, no duties would be paid until the parts are used. Additionally, imported merchandise for which a quota is filled or for which a quota on entry is established, may be held in the zone until the quota opens or is removed.

Exporters also receive benefits in that domestic goods moved into the zone for export can be considered exported upon admission to the zone for purposes of excise tax rebates and drawback.

Crowley operates in Puerto Rico since 1954.

Crowley utilizará a San Juan como puerto de trasbordo

La empresa naviera Crowley expandirá sus operaciones en Puerto Rico para convertir a la isla en su centro de exportación para el Caribe. La expansión es el resultado directo de un nuevo acuerdo entre Crowley y la Autoridad de los Puertos, que representará ingresos para la corporación de pública de $20.7 millones en 30 años.

Como parte de la expansión, Crowley utilizará el puerto de San Juan como puerto de trasbordo para transferir la mercancía que la naviera trae desde el puerto de Jacksonville, en el estado de la Florida, a barcos más pequeños para distribuirla a varios puertos del Caribe. Esto significa que su carga en el puerto de San Juan aumentará, aproximadamente, a 10 mil contenedores al año, un incremento de cerca de 15 %.

Para lograr estos planes, Crowley invertirá $405 millones en la construcción de dos nuevas barcazas más grandes, rápidas y amigables al ambiente, pues serán propulsadas por gas natural. Esta inversión protege los 298 empleados que ya tiene la naviera en la isla y le permitirá crear 100 nuevos empleos directos para trabajar en la operación naviera.

El gobernador Alejandro García Padilla afirmó que “Crowley escogió el puerto de San Juan para esta expansión sobre otros del Caribe por la estabilidad del mercado de Puerto Rico y por el crecimiento económico que se proyecta.”

Crowley está considerando una inversión adicional de $58 millones en mejoras a su infraestructura portuaria en San Juan, lo que conllevaría la creación de 75 empleos en la etapa de construcción.

El gobernador destacó que “estas y decenas de otras expansiones están ayudando a fortalecer nuestra base industrial, nuestro comercio exterior y a revitalizar nuestro sector turístico”, a la vez que agradeció a Crowley por su confianza en Puerto Rico.

Crowley Adds Cargo Handling Equipment

Crowley Maritime Corporation's liner services group is adding more than 3,000 pieces of cargo handling equipment to its fleet. The additional resources will allow the company to better meet increasing customer demand throughout Puerto Rico, the Caribbean and Latin America service areas.

The equipment includes 200 53-foot (102-inch wide) dry containers, 200 45-foot (102-inch wide) dry containers, 500 20-foot dry containers, 1,000 40-foot dry high-cube containers, 337 40-foot refrigerated high-cube containers, 30 20-foot refrigerated containers, 461 underslung gensets and 75 nosemount  gensets.

The new equipment, which will replace some aging units and allow for growth, brings Crowley’s equipment totals to nearly 43,000 containers, chassis and other specialized units.

“These acquisitions reflect our continued commitment to reinvest in the business for the benefit of our customers,” said Steve Collar, Crowley senior vice president and general manager, Latin America liner services. “And it further aligns with our strategy and desire to have the most modern and most desired type of equipment available when and where our customers need it.”

“We are particularly pleased to be able to add to our supply of high-capacity  53-foot containers, which are in great demand in our Puerto Rico liner services,” said John Hourihan, Crowley senior vice president and general manager, Puerto Rico/Caribbean. “These units have a capacity up to 3,268 cubic feet and the  capability to carry loads up to 42,660 pounds.”

In addition to meeting ISO standards for freight container door security applications, Crowley’s  new containers, which are expected to arrive in Jacksonville this summer, have an extra bolt-type seal lock and 3/8’-thick plating at the top and bottom for maximum security, helping to prevent unlawful access.

Since 2003, Crowley has invested more than $275 million to upgrade and grow its equipment fleet.  Jacksonville-based Crowley Holdings Inc., a holding company of the 121-year-old Crowley Maritime Corporation, is privately held family and employee-owned. The company provides project solutions, transportation and logistics services in domestic and international markets through six operating lines of business: Puerto Rico/Caribbean Liner Services, Latin America Liner Services, Logistics Services, Petroleum Services, Marine Services and Technical Services.