Coastal Bulk Shipping ceases trading

Citing problems with the non-performance of contracted customers and the weakness of sterling, managing director Tim Lowry said that these difficulties were exacerbated by a reduction in imports (especially fertilisers which farmers were unable to finance due to the contraction of the credit markets) and greater fuel costs.

Trade fell so significantly in November 2008 that the directors at Coastal Bulk Shipping had no other course of action than to put the company into administration. There is no question that rock bottom pricing by the road haulage industry has been a significant contributory factor and is a serious blow to the water-freight sector.

The problem is that at some future point market conditions will resume to some sort of equilibrium. OPEC has made clear that it also expects to see a return to higher oil prices and when that happens there will be return to what has been called the wholly unsustainable ways of the past. Freight by Water executive director Francis Power said, “The flexible and efficient services previously offered by Coastal Bulk Shipping will be greatly missed, especially its ability to take freight, including abnormal loads, off the roads.”