Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Gregory McGowan – Sidoti & Company.
Gregory McGowan – Sidoti & Company
With Tropical down significantly could you comment about specific actions that you're taking to mitigate the effect of the lower volume?
Richard L. Hawley
Sure, we'd be happy to and a number of these will be familiar to you, Greg. But in no way, I guess particular order, Tropical has, they began a process last year and continued this year focused on headcount reductions in face of reduced volume in the various ports. And they have pretty much completed that although I guess maybe you're never done, but they have reduced headcount.
We have laid off chartered vessels when their charters have come up and rearranged our shipping schedules to use our other assets to meet our volume needs. There are savings there. We are looking at, as with the current economic climate in the shipping industry, we have had and we expect reductions as we renew charters as they come up. I think you're seeing charter rates drop significantly.
We have, as I mentioned, in addition just rerouting for vessel changes. We have changed sailing schedules, changed, actually some things as small as changing the speed of the ship and get the fuel savings out of those. And we have looked at ports, particularly as you see fuel charges coming down, we're looking at ports where rate increases actually are suggested and appropriate. So it's a combination of all those things.
And I think you can see, while you see Tropical's results are down, as you know it's a fixed cost business and you're looking at volumes that are down 10%, 12% from the prior year. You probably if you just modeled that with no cost reductions you would expect actually net income versus last year to be down dramatically. We're down about a half million bucks I think. So that can tell you – that gives you a good indicator of the success they've had on the cost side.
Gregory McGowan – Sidoti & Company
What are you looking for, for Tropical for the full year at this point?
Richard L. Hawley
As far as what, where volumes are going to be or –
Gregory McGowan – Sidoti & Company
On the net income front?
Richard L. Hawley
I would expect we'll probably be down net income of a similar percentage to what you're seeing volumes being down if you kind of look at last year's net income. So we're in, you guys are probably tired of hearing this, of Tropical's had adequate, good and great years. We're probably in the low good or the high adequate range with what we're seeing right now.
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