Contracts
We derive a substantial portion of our revenue under medium to long-term contracts,
including time charters and contracts of affreightment.
Time charters are marine transportation contracts under which we retain operating
control over the vessel, but our charterer obtains the right for a specified
period of time to direct the movements and utilization of the vessel in exchange
for payment of a specified daily rate. Under these contracts, we typically fully
equip the vessel and are responsible for normal operating expenses, repairs,
crew wages, and insurance, while the charterer is responsible for voyage expenses,
such as fuel, port and stevedoring expenses.
Contracts of affreightment are marine transportation contracts by which we
undertake to provide space on our vessels for the carriage of specified goods
or a specified quantity of goods on a single voyage or series of voyages over
a given period of time, generally at our cost, between named ports or within
certain geographical areas in return for the payment of an agreed amount per
unit of cargo carried.
We maintain marketing staffs in New York, New Orleans, Mobile, Tampa, and Shanghai
and a network of marketing agents in major cities around the world who market
our time charter and contracts of affreightment services. We market our Rail-Ferry
Service under the brand name CG Railway. We market our remaining transportation
services under the brand names Central Gulf, Waterman, East Gulf, and Coastal
Carriers. We advertise our services in trade publications in the United States
and abroad.
