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Definitely not good news, unless you're in the market....


rjac

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45 minutes ago, Matt said:

Why is it bad news? I mean, cruise lines hedge food, fuel, and probably other things but not sure why auctioning off surplus food is a bad thing or sign? 

What has me most concerned is the second paragraph "Tiger Group announced it is hosting an online auction of the remaining inventory from cruise industry supplier Kansas Marine Co.’s soon-to-close Miami distribution center." Closing this distribution center could have a serious impact on cruise ships out o Miami. 

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53 minutes ago, rjac said:

What has me most concerned is the second paragraph "Tiger Group announced it is hosting an online auction of the remaining inventory from cruise industry supplier Kansas Marine Co.’s soon-to-close Miami distribution center." Closing this distribution center could have a serious impact on cruise ships out o Miami. 

That’s interesting. 

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49 minutes ago, jticarruthers said:

I read it as "we cant stay in business any longer and are shutting down the distribution center" ... so when cruising does start back up (almost used the word if) you have to restart that supply segment as well.

This is exactly my interpretation as well

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1 hour ago, jticarruthers said:

I read it as "we cant stay in business any longer and are shutting down the distribution center" ... so when cruising does start back up (almost used the word if) you have to restart that supply segment as well.

Good catch... And I don't think it's something an ordinary supplier could step in and do, either. If they were the ones bringing supplies onboard or even just to port, I'm sure they had to have TWIC cards and all of the anti-terrorism training that comes with it. Won't be an easy resource to just turn back on if that's the case.

 

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It is inevitable that many businesses that rely on the travel industry won't be able to survive the duration of the pandemic.  Few businesses anywhere can go a year with little if any revenue.  It starts with closing locations that make the most sense.  Perhaps their lease was up or perhaps this location was the easiest to leave with minimal penalties or fees.  I'm betting the landlord or building owner didn't or couldn't give them free rent for a year.

When we hear talk about the impact of the cruise industry on the local economy this is a good example.  These are the types of businesses that exist because of the cruise industry.

This particular company also has warehouses in California used by cruise lines there.  It's unknown if Royal uses them or the extent that Royal used them.  Certainly other cruise lines did.

 

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27 minutes ago, LizzyBee23 said:

Good catch... And I don't think it's something an ordinary supplier could step in and do, either. If they were the ones bringing supplies onboard or even just to port, I'm sure they had to have TWIC cards and all of the anti-terrorism training that comes with it. Won't be an easy resource to just turn back on if that's the case.

 

I have a Twic card, really wasn't hard to get.  It has been expired now for a few years, but I believe it was just a couple hour class and background check. Right now  it's bad business, no doubt. When there is money to be had when things start back up, someone will step in I'd think

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5 minutes ago, JasonL said:

I have a Twic card, really wasn't hard to get.  It has been expired now for a few years, but I believe it was just a couple hour class and background check.

Mine was a one week course back in 2013, but that may have changed. I'm also not sure how it would work with a break in employment (meaning one of the workers let go from this facility is laid off, but willing to come back 6 months later). Would they have to re-up the background check or could the whole process be skipped?

Either way, it's more involved than hiring someone to work at an ordinary warehouse for sure.

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it's not great news, but in south florida (like any other major metro area) there is a TON of competition among many food vendors for their huge hospitality industry as well as your normal grocery and institutional type services.  i'm in the food business up north and while the past year has been crazy, there's still plenty of product and capacity (although manufacturers have limited their product runs, a lot of specialty and smaller volume flavors/editions are just not being made).  the perishable side of the business for produce/meat/deli has always been a bit of the wild wild west to it because there are very large outfits that contract pricing out a great ways and there are many more smaller distributors who buy up the more close dated items and pound the pavement selling hot priced deals to move that product. 

very unfortunate that one business is going out and i'm sure it's pandemic related but by no means does that affect cruise lines' ability to procure food.  another great thing about the free market is another entity will get a great deal on that food and use it before it spoils, someone else will get a deal on buying or leasing that space and someone could easily get back into the food distribution business there or anywhere else as soon as lines start back up.

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While Kansas Marine may be choosing to close down their Miami location temporarily, it doesn't mean that there aren't competitors out there that could consider filling the void. I would also suggest that this "closure" could be part of a strategic negotiation with the Port of Miami to obtain better lease terms once cruising picks up again. 

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