CASE STUDY
The Client:
A leading port operator and general contracting stevedore in Southern California, the company stands as a critical link in global supply chains. Serving major shipping alliances and providing comprehensive solutions for East Asian shipping companies, the operator manages the complex choreography of international commerce—lifting containers on and off vessels, coordinating truck and rail transport, and providing secure short-term storage at their state-of-the-art facility. With decades of experience navigating the demanding logistics of one of America’s busiest ports, the company has built its reputation on reliability, efficiency, and the ability to handle massive cargo volumes that keep global trade flowing.
The Challenge:
The perfect storm of COVID-19 disruptions and protracted union labor contract negotiations created unprecedented operational challenges that severely impacted shipping volumes and cash flow. As the industry faced its most significant slowdown in decades, the company’s financial position was strained by the dramatic reduction in vessel traffic and container movement. When shipping alliances finally signaled their return to historical volumes, the company faced a critical inflection point—they needed immediate working capital to rapidly scale operations back to full capacity. Traditional lenders, seeing only the recent disruptions and current leverage ratios, were unwilling to provide the speed and flexibility required. Without immediate liquidity, the company risked losing long-standing contracts and missing the crucial window for operational recovery.
Solution:
First National Capital recognized that beneath the temporary disruptions lay a fundamentally sound business with irreplaceable infrastructure and deep customer relationships. Moving with the urgency the situation demanded, First National approved and funded $15,000,000 directly to the company’s balance sheet—delivering $5,000,000 within 30 days and the remaining $10,000,000 within 60 days to meet immediate operational requirements. The financing structure featured a sophisticated multi-schedule master lease that allowed the client to align lease terms with the useful life of different equipment categories, from container handling equipment to yard machinery. While traditional lenders struggled to understand the cyclical nature of port operations and the strategic importance of the company’s market position, First National’s deep industry expertise enabled rapid underwriting and creative structuring. The speed and efficiency of First National’s process allowed management to focus on ramping up operations rather than wrestling with complex financial negotiations. This partnership not only provided the immediate liquidity needed for recovery but also positioned the company to capitalize on the surge in shipping demand that followed, strengthening their competitive position in the Southern California port ecosystem.
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