Interview with Dan Thorogood, CEO of Fairwater Holdings

Tony Munoz, Editor-in-Chief, Interviews Dan Thorogood, CEO of the newly launched Fairwater Holdings (a joint venture between SEACOR Holdings and Crowley)

TME: Congratulations on Fairwater! I understand the company integrates the liquid energy transportation assets and teams of both Crowley and SEACOR’s former subsidiary, Seabulk Tankers, Inc. Can you talk a little about how the two companies complement one another? 

Dan Thorogood (DT): Tony, thank you for asking me to speak about Fairwater. Fairwater is an independent, standalone company with two shareholders, Crowley and SEACOR, and brings together their petroleum and chemical transportation teams, equipment, and contracts into a new operating platform. Through this combination, we have established the most diversified fleet and capability set in the industry servicing all major Jones Act coastwise trades. This new organization also provides 3rd party ship management and construction support services. 

TME: Will the company be based in Fort Lauderdale or Jacksonville? 

DT: The company will be headquartered in Fort Lauderdale where we are building out new office space at the DCOTA building close to the Fort Lauderdale Airport. The office will enable our teams to easily collaborate and give everyone their own high quality personal workspaces. Our other significant office is in Jacksonville, with additional satellite offices in Tampa, Seattle, and Fairfield, Conn. 

TME: When did the joint venture take place and who is on the Fairwater Board?

DT: We closed on August 1st, and I’m honored to serve as CEO. I report to a six-member board that includes Tom Crowley and Eric Fabrikant and other highly respected individuals in the wider transportation and logistics space. I look forward to drawing on their expertise, experience, and vision as we solidify Fairwater’s position in the marketplace and explore exciting, new opportunities for growth. 

TME: How many vessels are involved? 

DT: The Fairwater fleet consists of 31 owned tank vessels including 11 tankers and 20 ATB’s. Several of the ATB’s are high spec and manage chemical parcel shipments. Two of the tankers are Aframax size engaged in the Alaskan crude oil trade. Integrating these fleets provides better Jones Act services and optionality for our customer base. 

TME: How have your customers responded to Fairwater? 

DT: Our customers have been very supportive. While Fairwater is a “new” company, our customer base was built over many decades under the former Seabulk and Crowley banners. In an industry which is often cyclical in nature, these long-standing relationships create stability and position us to continue serving as a trusted partner to our customers for years to come. 

TME: Given the recent mergers and consolidations of Jones Act companies, what does the Jones Act future look like to you? 

DT:  The Jones Act is in a strong position going forward with ongoing interest in the industry from investors and healthy competition among its participants. We recently witnessed a public company go private with Saltchuk’s acquisition of OSG in July of this year, while Keystone re-entered the Jones Act with three ships a few years ago, and Rose Key and Centerline both purchased assets from the Bouchard bankruptcy in 2020. 

From a political perspective, the tone in Washington, D.C. is as supportive and proactive as it has ever been towards the Jones Act. Capitol Hill acknowledges that a strong U.S. Merchant Marine is critical to national security and sustainment activities both at home and overseas, such as equipping our peacekeepers and armed forces deployed around the world.

TME: Does the Jones Act assist in the overlap with the U.S. flag for the foreign trade lanes?

DT: Sure. A strong Jones Act fleet strengthens the U.S. flag fleet by supporting shipyards, U.S. based suppliers, and training licensed seafarers. Ultimately, this eco-system sustains a strong defense transportation industry. For example, the U.S. government recently created the Tanker Security Program, which has authorized ten new U.S.-flagged ships for energy transportation supporting U.S. military activities worldwide, this program drew from mariners and operators previously working in the Jones Act trades.

TME: Where does Fairwater source its mariners, and how many seafarers work for the company?

DT: It’s critical in our industry to recognize the professionalism and commitment of our mariners, who operate on the front lines of the business. We are extremely lucky to commence operations with approximately 1,500 of the most experienced mariners in the Jones Act and U.S. flag trades. 

It’s a well-known fact that there’s a domestic mariner shortage, a lasting impact from the COVID-19 lockdowns and loss of training opportunities as well as other broader industry challenges. Over the past several years, the unions and operators have worked very hard to remedy this situation and reinvigorate interest in the maritime professions. 

TME: And how many shoreside personnel does Fairwater employ?

DT: In terms of shoreside staff, we have between 160 to 170 personnel overseeing the fleet in positions spanning commercial, operations, labor relations, engineering, accounting, and general corporate support functions. 

TME: What trade lanes does the company operate in?

DT: Fairwater is active across four main lanes. Alaskan crude transportation from Valdez to the West Coast refineries, the intra- U.S. West Coast supply and distribution of clean products from refineries to end markets. Our ships and ATBs also deliver products from the Gulf Coast refinery complexes to Florida, and other South Atlantic states. Finally, Fairwater has chemical parcel COA and spot service transporting cargo from the U.S. Gulf Coast to discharge ports all along the East Coast from Northern Florida to Maine.

TME: What are your biggest challenges?

DT: Like many shipowners, we’re responsible for making accurate judgments on equipment specifications over multi-decade time horizons, with some assets operating for 40-years or more, and for aligning our fleet and solutions with our customers evolving needs. This includes choosing the correct fuel sources and adopting new and innovative approaches to reducing carbon emissions, a driving force across the maritime industry. At Fairwater, our goal isn’t to follow the industry standards, but set them, and help our customers solve their most pressing challenges.

TME: Tell us about yourself and what kind of manager you are.

DT: I grew up in the shipping industry and an early part of my life was spent in Singapore where my father was an area manager for a U.K. ship owner. On Saturday mornings, I would tag along with him and visit their supply boats, which inevitably set me on my path to becoming a maritime professional.

My most significant opportunity came when Charles Fabrikant, the founder and longtime CEO of SEACOR Holdings, offered me a trainee role at SEACOR where I went on to spend the next 24 years. During this time, I not only grew into a variety of senior positions but was able to gain unparalleled experience across several facets of marine transportation and logistics and play a role in developing some of SEACOR’s many business lines.

As for my management style, I’m incredibly passionate about the business and prioritize understanding the nuance and detail of the industry we serve but also take great pride in empowering my teams to assume ownership of their work and develop professionally. I think collaboration and partnership must exist equally between a business and its customers, and a business and its people, and I’m committed to building a strong culture for all.  – MarEx