October 14, 2019, by Philippe Teisceira-Lessard, The Press
Paul Pathy is the head of Fednav, a shipping company founded by his grandfather's generation 75 years ago this year. The Federal Oshima, aboard which La Presse crossed the Atlantic this fall, is part of his fleet. Despite its size, "in the world's top 10," the family business remains little known.
How was Fednav born?
The company was established in 1944 in Toronto. Nobody knows why it was established in Toronto, when the Seaway had not yet opened. The company started with liberty ships, military ships that were sold at a good price after the Second World War. We moved to Montreal in the early 1950s, and the Seaway opened in 1959, which was the beginning of a period of great growth for the company.
What does your industry look like now?
The bulk world changed around 2004, when the Chinese economy woke up and suddenly started using 20% of the world's ships. If you had ships at that time, you were doing good business. And we did. There was a drop with the 2008 crisis, but since 2016, things have been better.
Is the Canada-Europe Free Trade Agreement (CETA) positive for you? And Donald Trump's protectionist impulses?
Our industry is interesting because if you open the international section of your newspaper, no matter what news is in the headlines, it will have a direct impact on shipping prices. Trump's tariffs are having a negative impact on our business because we are in the business of shipping foreign steel to the United States. CETA is having an impact, but the health of the global economy is the most important factor.
Why do Fednav ships sail with mainly foreign crews?
We are an international shipping company based in Canada. We compete in the global market with ships from Norway, Japan, Greece and everywhere else. The reality is that to compete in the global market, you have to use foreign crews. That's what the competition does. Only 20 to 25% of our business is Canadian-related.
Is Fednav a big company in its sector?
We have 128 ships sailing right now. That's a record for us. In the bulk world, we're probably in the top 10 in the world. We're bigger than 95% of the shipping companies in the world, but we're far from the biggest on the planet. I often say we're about a billion dollar company. I'll let you draw your own conclusions.
Why, then, do few Montrealers know the name of your company?
No one thinks about the raw resources that come across the ocean. It’s not something the public hears about or thinks about. The whole industry flies under the radar. Plus, we’re a family business that has always preferred to keep a low profile.