Crowley Marine Services to Discontinue Freight Services to Western Alaska

Fuel Services and Contract Towing Will Continue

SEATTLE(Oct. 21, 1998)Crowley Marine Services (CMS) today announced it will discontinue its seasonal common carrier barge service to Western Alaska. The CMS Freight Services Division, formerly known in the marketplace as Pacific Alaska Lines West, will cease operation at the end of the current season. Crowleys Fuel Services and Contract Towing divisions in the region will remain in place.

Among the reasons cited for the decision were lower cargo volumes, lower air freight rates, deterioration of seasonal fish runs in Bristol Bay, and the advent of by-pass mail and competition with other, more rapid means of transporting goods to Western Alaska.

“This move is the result of changing times in transportation services to remote areas in Western Alaska,” said Tom Martin, CMS Vice President, West Coast and Alaska.” With the other barge services currently in the trade and the addition of other competing forms of transportation now serving the region, we feel that our common carrier service will no longer be a necessary ingredient in the transportation mix for this region. Crowley has always had a strong presence in Western Alaska and we will continue to maintain an active role in the communities we serve through our Fuel Services and Contract Towing divisions.”

Crowley Marine Services, Inc., headquartered in Seattle, Washington, provides specialized marine transportation and logistics services on a worldwide basis, operating one of the worlds largest fleets of marine and related equipment. The company’s primary services include tanker escort and ship assist; petroleum transportation and sales; contract barge transportation and ocean towing; logistics and support services; marine salvage and emergency response services provided by CMS and the joint venture Marine Response Alliance; U.S. West Coast spill response services provided by the joint venture Clean Pacific; and all-terrain transportation.