Executive Summary
Coastal Trading Company, founded in 1998, operates as a private logistics and trading firm specializing in the import of consumer goods, industrial components, and agricultural commodities from Latin American and Caribbean markets to U.S. retailers and manufacturers. By combining an integrated fleet of roll‑on/roll‑off (RoRo) vessels, advanced customs brokerage, and e‑commerce fulfillment services, the company has maintained steady revenue growth, expanding its domestic footprint across the southeastern United States while maintaining a niche presence in international markets. This document presents a detailed assessment of the company’s history, operational model, product lines, geographic reach, financial performance, governance structure, and sustainability initiatives.
Company Overview
Founding and Legal Structure
Coastal Trading Company, LLC (hereafter “Coastal Trading”) was established on March 12, 1998, in Charlotte, North Carolina, as a limited liability company (LLC) by two founders: John A. Smith (Chief Executive Officer) and Maria R. López (Chief Operations Officer). The company is privately held and headquartered in Charlotte. All corporate decisions are made by the Board of Directors, which consists of the founders and a 20% equity holder represented by a private investment group (see “Key Events”).
Corporate Vision and Mission
The mission of Coastal Trading is to facilitate reliable, efficient, and compliant international trade, primarily within the U.S. southeast corridor and the Latin American trade lanes. The vision emphasizes innovation in logistics technology, environmental stewardship, and social responsibility.
Core Competencies
- Specialized knowledge of U.S.–Latin American trade regulations and market dynamics.
- End‑to‑end logistics services including customs brokerage, warehouse management, and order fulfillment.
- Proprietary data analytics platform for supply‑chain transparency.
- Integrated fleet of RoRo vessels, strategically located near major U.S. ports (Charleston, Savannah, Jacksonville).
Operations
Geographic Footprint
Coastal Trading’s operational focus is the U.S. southeastern corridor, covering the ports of Charleston, Savannah, Jacksonville, and Norfolk. It maintains distribution centers in Charleston (since 2010) and Charleston, as well as a 5,000‑ft² warehouse in Savannah. Internationally, the firm sources primarily from Mexico, Brazil, Dominican Republic, Puerto Rico, and Venezuela, and exports niche goods to selected European and Asian ports.
Fleet and Shipping
Coastal Trading operates a fleet of five RoRo vessels, each with a capacity of approximately 6,000 TEU (Twenty‑foot Equivalent Units). The vessels are registered with the U.S. Coast Guard, comply with the ISM Code, SOLAS, and the IMO’s International Safety Management (ISM) Code. Two of the vessels were upgraded in 2023 with low‑emission engines and ballast water management systems to reduce the environmental impact.
Logistics Network
The company’s logistics network includes:
- Warehouse in Charleston – 50,000 ft², multi‑purpose inventory.
- Warehouse in Savannah – 30,000 ft², dedicated to perishable goods.
- Warehouse in Jacksonville – 20,000 ft², for industrial components.
All warehouses are equipped with automated palletizing systems and integrated with Coastal Trading’s internal ERP system for real‑time inventory management.
Technology Infrastructure
Coastal Trading’s proprietary logistics software platform integrates data from suppliers, carriers, and customers to provide analytics on lead times, cost per unit, and order accuracy. The platform also supports dynamic pricing models that adjust based on market volatility and supply constraints.
Product Portfolio
Consumer Goods
- Food & Beverages: Coffee, seafood, canned goods, fresh produce.
- Apparel & Accessories: Light‑weight apparel, footwear.
- Household Goods: Kitchenware, cleaning supplies.
Industrial Components
- Electrical Parts: Switches, connectors, small sensors.
- Packaging Materials: Cardboard boxes, plastic films.
- Machinery Components: Small gears, bearings.
Agricultural Commodities
- Coffee beans (Brazil, Colombia, Central America).
- Herbs & spices (Chile, Mexico).
- Fresh produce (Brazil, Mexico).
Services
Trading Services
Coastal Trading offers import and export services for the above product categories. The company’s customs brokerage division specializes in duty optimization, tariff classification, and compliance with the U.S. Department of Commerce’s Export Administration Regulations (EAR) and International Traffic in Arms Regulations (ITAR) for relevant products.
Logistics & Fulfillment Services
Additional services include:
- Warehousing and inventory control.
- Order fulfillment (including e‑commerce).
- Reverse logistics.
- Last‑mile delivery.
- Freight forwarding (sea, rail, air).
Technology Services
The company provides data analytics, risk management, and real‑time visibility solutions to its clients, integrating with major ERP systems such as SAP and Oracle.
Market Segments and Customer Base
Geographic Focus
Domestic: U.S. Southeast (Charleston, Savannah, Jacksonville), Midwest. International: Latin America (Mexico, Brazil, Dominican Republic), Caribbean (Puerto Rico, Trinidad & Tobago). The company also services select European and Asian ports for niche products.
Customer Segments
- Small and medium‑sized retailers.
- Specialty food distributors.
- Manufacturing firms for industrial components.
Coastal Trading’s client base includes 70+ companies, with a retention rate of 88%. The average contract value is between $500,000–$2,000,000 per year.
Financial Performance
Revenue Growth
- 1998: $2 million
- 2005: $12 million
- 2010: $45 million
- 2015: $78 million
- 2020: $105 million
- 2023: $128 million
CAGR from 2000 to 2023: 9.4%.
Profitability
- Operating margin (2023): 8.1%
- Return on equity (ROE, 2023): 12%
Capital Structure
Funding is primarily from retained earnings and a $30 million credit facility (2018). No public equity has been issued.
Corporate Governance
Board Structure
Board of Directors: Founders + investment group representative. Committees: Audit, Compensation, Nomination & Governance.
Compliance
Coastal Trading adheres to U.S. SEC reporting standards for private entities and follows ISO 37001 anti‑bribery management standards.
Sustainability & CSR
Environmental Initiatives
- Fleet upgrades with low‑emission engines (2023).
- Ballast water management.
- Energy‑efficient warehouses (LED lighting, HVAC controls).
- Carbon offset program: 2,500 tCO₂ per year.
Social Responsibility
The company supports community outreach in Charlotte and Savannah, including internship programs for local universities.
Key Milestones & Events
- 1998 – Company founded.
- 2001 – First RoRo vessel acquired.
- 2010 – Charleston warehouse opened.
- 2015 – E‑commerce fulfillment service launched.
- 2018 – Private equity investment (20% stake).
- 2023 – Fleet upgrades, sustainability award.
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