10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

R	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Quarterly Period Ended September 30, 2013
or
£	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Transition Period from                    to

Commission File Number: 001-33345

___________________

RAND LOGISTICS, INC.

(Exact name of registrant as specified in its charter)

Delaware	No. 20-1195343
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
500 Fifth Avenue, 50th Floor
New York, NY	10110
(Address of principal executive offices)	(Zip Code)

Registrant's telephone number, including area code:

(212) 644-3450

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer £	Accelerated filer R
Non-accelerated filer £	Smaller reporting company £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes £ No R

17,925,129 shares of Common Stock, par value $.0001, were outstanding at November 6, 2013. 

RAND LOGISTICS, INC.

INDEX

PART I. FINANCIAL INFORMATION	1
Item 1. Financial Statements.	1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	33
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	51
Item 4. Controls and Procedures.	51
PART II. OTHER INFORMATION	53
Item 1. Legal Proceedings.	53
Item 1A. Risk Factors.	53
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	53
Item 3. Defaults Upon Senior Securities.	53
Item 4. Mine Safety Disclosures.	53
Item 5. Other Information.	53
Item 6. Exhibits.	54

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

RAND LOGISTICS, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

	September 30, 2013			March 31, 2013
ASSETS
CURRENT
Cash and cash equivalents	$	3,040		$	848
Accounts receivable, net (Note 4)	18,728			5,486
Income tax receivable	113			113
Loan to employee	250			250
Prepaid expenses and other current assets (Notes 5 and 8)	8,351			7,842
Deferred income taxes (Note 6)	262			262
Total current assets	30,744			14,801
PROPERTY AND EQUIPMENT, NET (Note 7)	210,228			219,084
OTHER ASSETS (Note 8)	913			1,050
DEFERRED INCOME TAXES (Note 6)	—			2,203
DEFERRED DRYDOCK COSTS, NET (Note 9)	10,476			10,895
INTANGIBLE ASSETS, NET (Note 10)	11,596			12,612
GOODWILL (Note 10)	10,193			10,193
Total assets	$	274,150		$	270,838
LIABILITIES
CURRENT
Bank indebtedness (Note 12)	$	11,809		$	5,997
Accounts payable	14,761			21,697
Accrued liabilities (Note 13)	20,988			21,316
Deferred income taxes (Note 6)	—			173
Current portion of deferred payment liability (Note 11)	431			431
Current portion of long-term debt  (Note 14)	3,612			3,630
Total current liabilities	51,601			53,244
LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY (Note 11)	1,404			1,631
LONG-TERM DEBT  (Note 14)	137,257			139,760
OTHER LIABILITIES	253			253
DEFERRED INCOME TAXES (Note 6)	9,511			3,532
Total liabilities	200,026			198,420
COMMITMENTS AND CONTINGENCIES (Notes 15 and 16)
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, Issued and outstanding 300,000 shares (Note 17)	14,900			14,900
Common stock, $.0001 par value Authorized 50,000,000 shares, Issuable and outstanding 17,925,129 shares (Note 17)	1			1
Additional paid-in capital	89,431			89,077
Accumulated deficit	(30,281		)	(32,341		)
Accumulated other comprehensive income	73			781
Total stockholders’ equity	74,124			72,418
Total liabilities and stockholders’ equity	$	274,150		$	270,838

The accompanying notes are an integral part of these consolidated financial statements.

1

RAND LOGISTICS, INC.

Consolidated Statements of Operations (Unaudited)

U.S. Dollars 000’s except for Shares and Per Share data)

	Three months ended September 30, 2013			Three months ended September 30, 2012			Six months ended September 30, 2013			Six months ended September 30, 2012
REVENUE
Freight and related revenue	$	42,955		$	39,040		$	82,560		$	75,367
Fuel and other surcharges	7,586			11,107			16,382			23,582
Outside voyage charter revenue	—			424			—			1,234
TOTAL REVENUE	50,541			50,571			98,942			100,183
EXPENSES
Outside voyage charter fees (Note 18)	—			423			—			1,245
Vessel operating expenses	31,608			31,986			64,291			65,143
Repairs and maintenance	118			270			935			657
General and administrative	3,195			3,175			6,076			6,145
Depreciation	4,275			3,623			8,580			7,111
Amortization of drydock costs	829			873			1,667			1,752
Amortization of intangibles	319			328			641			654
(Gain) loss on foreign exchange	(3		)	(18		)	60			(14		)
	40,341			40,660			82,250			82,693
OPERATING INCOME	10,200			9,911			16,692			17,490
OTHER (INCOME) AND EXPENSES
Interest expense (Note 19)	2,345			2,236			4,734			4,940
Interest income	(1		)	(2		)	(3		)	(6		)
Gain on interest rate swap contracts (Note 21)	—			(272		)	—			(542		)
Loss on extinguishment of debt	—			3,339			—			3,339
	2,344			5,301			4,731			7,731
INCOME BEFORE INCOME TAXES	7,856			4,610			11,961			9,759
PROVISION FOR INCOME TAXES (Note 6)
Current	—			—			—			—
Deferred	6,641			1,728			8,168			3,782
	6,641			1,728			8,168			3,782
NET INCOME BEFORE PREFERRED STOCK DIVIDENDS	1,215			2,882			3,793			5,977
PREFERRED STOCK DIVIDENDS	879			782			1,733			1,540
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$	336		$	2,100		$	2,060		$	4,437
Net income per share basic and diluted (Note 22)	$	0.02		$	0.12		$	0.12		$	0.25
Weighted average shares basic and diluted	17,919,524			17,724,389			17,897,856			17,722,242

The accompanying notes are an integral part of these consolidated financial statements.

2

RAND LOGISTICS, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

U.S. Dollars 000’s except for Shares and Per Share data)

(U.S. Dollars 000’s except for Shares and Per Share data)

	Three months ended September 30, 2013	Three months ended September 30, 2012	Six months ended September 30, 2013		Six months ended September 30, 2012
NET INCOME BEFORE PREFERRED STOCK DIVIDENDS	1,215	2,882	3,793		5,977
Other comprehensive income:
Change in foreign currency translation adjustment	871	1,512	(708	)	451
COMPREHENSIVE INCOME BEFORE PREFERRED STOCK DIVIDENDS	2,086	4,394	3,085		6,428

The accompanying notes are an integral part of these consolidated financial statements.

3

RAND LOGISTICS, INC.

Statements of Stockholders' Equity (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

	Common Stock			Preferred Stock			Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income			Total Stockholders' Equity
	Shares	Amount		Shares	Amount
Balances, March 31, 2012	17,676,278	$	1	300,000	$	14,900	$	87,853	$	(25,349	)	$	1,940		$	79,345
Net loss	—	—		—	—		—		(3,819		)	—			(3,819		)
Preferred stock dividends	—	—		—	—		—		(3,173		)	—			(3,173		)
Stock issued in lieu of cash compensation (Note 17)	94,993	—		—	—		559		—			—			559
Restricted stock issued (Note 17)	78,141	—		—	—		590		—			—			590
Unrestricted stock issued (Note 17)	10,854	—		—	—		75		—			—			75
Translation adjustment	—	—		—	—		—		—			(1,159		)	(1,159		)
Balances, March 31, 2013	17,860,266	$	1	300,000	$	14,900	$	89,077	$	(32,341	)	$	781		$	72,418
Net Income	—	—		—	—		—		2,578			—			2,578
Preferred stock dividends	—	—		—	—		—		(854		)	—			(854		)
Restricted stock issued (Note 17)	54,337	—		—	—		301		—			—			301
Unrestricted stock issued (Note 17)	4,859	—		—	—		26		—			—			26
Translation adjustment	—	—		—	—		—		—			(1,579		)	(1,579		)
Balances, June 30, 2013	17,919,462	$	1	300,000	$	14,900	$	89,404	$	(30,617	)	$	(798	)	$	72,890
Net Income	—	$	—	—	$	—	$	—	$	1,215		$	—		$	1,215
Preferred stock dividends	—	$	—	—	$	—	$	—	$	(879	)	$	—		$	(879	)
Unrestricted stock issued (Note 17)	5,667	$	—	—	$	—	$	27	$	—		$	—		$	27
Translation adjustment	—	—		—	—		—		—			871			871
Balances, September 30, 2013	17,925,129	$	1	300,000	$	14,900	$	89,431	$	(30,281	)	$	73		$	74,124

The accompanying notes are an integral part of these consolidated financial statements.

4

RAND LOGISTICS, INC.

Consolidated Statements of Cash Flows (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

	Six months ended September 30, 2013			Six months ended September 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	3,793		$	5,977
Adjustments to reconcile net income to net cash provided  by operating activities:
Depreciation and amortization of drydock costs	10,247			8,863
Amortization of intangibles and deferred financing costs	912			1,201
Deferred income taxes	8,168			3,782
Gain on interest rate swap contracts	—			(542		)
Loss on extinguishment of debt	—			3,339
Equity compensation granted	354			435
Deferred drydock costs paid	(3,532		)	(3,653		)
Changes in operating assets and liabilities:
Accounts receivable	(13,242		)	(19,182		)
Prepaid expenses and other current assets	(509		)	(905		)
Accounts payable and accrued liabilities	(2,404		)	5,220
Other assets and liabilities	137			375
Income taxes payable (net)	—			(53		)
	3,924			4,857
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(5,520		)	(26,825		)
	(5,520		)	(26,825		)
CASH FLOWS FROM FINANCING ACTIVITIES
Deferred payment liability obligation	(227		)	(211		)
Proceeds from long-term debt	—			15,298
Long-term debt repayment	(1,799		)	(2,792		)
Debt financing cost	(23		)	(2,115		)
Proceeds from bank indebtedness	17,414			24,015
Repayment of bank indebtedness	(11,559		)	(12,069		)
	3,806			22,126
EFFECT OF FOREIGN EXCHANGE RATES ON CASH	(18		)	(12		)
NET INCREASE IN CASH AND CASH EQUIVALENTS	2,192			146
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	848			5,563
CASH AND CASH EQUIVALENTS, END OF  PERIOD	$	3,040		$	5,709
SUPPLEMENTAL CASH FLOW DISCLOSURE
Payments for interest	$	4,634		$	4,932
Unpaid purchases of property and equipment	$	544		$	3,351
Unpaid purchases of deferred drydock cost	$	2		$	74
Payment of income taxes	$	—		$	53
Capitalized interest	$	—		$	538

The accompanying notes are an integral part of these consolidated financial statements.

5

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

1.     DESCRIPTION OF BUSINESS

Rand Logistics, Inc. (the “Company”), a Delaware corporation, is a leading provider of bulk freight shipping services throughout the Great Lakes region. The Company believes that it is the only company providing significant domestic port-to-port services to both Canada and the United States in the Great Lakes region. The Company maintains this operating flexibility by operating both U.S. and Canadian flagged vessels in compliance with the Shipping Act, 1916, and the Merchant Marine Act, 1920, commonly referred to as the Jones Act in the U.S. and the Coasting Trade Act in Canada, respectively.

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and consolidation

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Rand Finance Corp. (“Rand Finance”), Rand LL Holdings Corp. ("Rand LL Holdings") and Black Creek Shipping Holding Company, Inc. ("Black Creek Holdings"), wholly-owned subsidiaries of the Company, the accounts of Lower Lakes Towing Ltd. ("Lower Lakes"), Lower Lakes Transportation Company ("Lower Lakes Transportation") and Grand River Navigation Company, Inc. ("Grand River"), each of which is a wholly-owned subsidiary of Rand LL Holdings, Black Creek Shipping Company, Inc. ("Black Creek"), a wholly-owned subsidiary of Black Creek Holdings, and Lower Lakes Ship Repair Company Ltd. ("Lower Lakes Ship Repair"), a wholly-owned subsidiary of Lower Lakes.

The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. In the opinion of management, the interim financial statements contain all adjustments necessary (consisting of normal recurring accruals) to present fairly the financial information contained herein. Operating results for the interim period presented are not necessarily indicative of the results to be expected for a full year, in part due to the seasonal nature of the business. The comparative balance sheet amounts are derived from audited consolidated financial statements for the fiscal year ended and as at March 31, 2013. The statements and related notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements that were included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Accounts receivable and concentration of credit risk

The majority of the Company’s accounts receivable are amounts due from customers and other accounts receivable, including insurance and Harmonized Sales Tax refunds.  The majority of accounts receivable are due within 30 to 60 days and are stated at amounts due from customers net of an allowance for doubtful accounts. The Company extends credit to its customers based upon its assessment of their creditworthiness and past payment history. Accounts outstanding longer than the contractual payment terms are considered past due. The Company has historically had no significant bad debts. Interest is not accrued on outstanding receivables.

6

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue and operating expenses recognition

The Company generates revenues from freight billings under contracts of affreightment (voyage charters) generally on a rate per ton basis based on origin-destination and cargo carried. Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period when the following conditions are met: the Company has a signed contract of affreightment, the contract price is fixed or determinable and collection is reasonably assured.  Included in freight billings are other fees such as fuel surcharges and other freight surcharges, which represent pass-through charges to customers for toll fees, lockage fees and ice breaking fees paid to other parties.  Fuel surcharges are recognized ratably over the duration of the voyage, while freight surcharges are recognized when the associated costs are incurred. Freight surcharges are less than 5% of total revenue.

Marine operating expenses such as crewing costs, fuel, tugs and insurance are recognized as incurred or consumed and thereby are recognized ratably in each reporting period. Repairs and maintenance and certain other insignificant costs are recognized as incurred.

The Company subcontracts excess customer demand to other freight providers.  Service to customers under such arrangements is transparent to the customer and no additional services are provided to customers.  Consequently, revenues recognized for customers serviced by freight subcontractors are recognized on the same basis as described above.  Costs for subcontracted freight providers, presented as “outside voyage charter fees” in the consolidated statements of operations, are recognized as incurred and therefore are recognized ratably over the voyage.

The Company accounts for sales taxes imposed on its services on a net basis in the consolidated statements of operations.

In addition, all revenues are presented on a gross basis.

Vessel acquisitions

Vessels are stated at cost, which consists of the purchase price and any material expenses incurred upon acquisition, such as initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for its initial voyage. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earnings capacity or improve the efficiency or safety of the vessels. Significant financing costs incurred during the construction period of the vessels are also capitalized and included in the vessels' cost.

Fuel and lubricant inventories

Raw materials, fuel and certain operating supplies are accounted for on a first-in, first-out cost method (based on monthly averages). Raw materials and fuel are stated at the lower of actual cost (first-in, first-out method) or market. Operating supplies are stated at actual cost or average cost.

Intangible assets and goodwill

Intangible assets consist primarily of goodwill, deferred financing costs, trademarks, trade names and customer relationships and contracts. Intangible assets are amortized as follows:

Trademarks and trade names	10 years straight-line
Customer relationships and contracts	15 years straight-line

Deferred financing costs are amortized on a straight-line basis over the term of the related debt, which approximates the effective interest method.

7

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Property and equipment

Property and equipment are recorded at cost.  Depreciation methods for property and equipment are as follows:

Vessels	5 - 25 years straight-line
Leasehold improvements	7 - 11 years straight-line
Vehicles	20% declining-balance
Furniture and equipment	20% declining-balance
Computer equipment	45% declining-balance
Communication equipment	20% declining-balance

Impairment of fixed assets

Fixed assets (e.g. property and equipment) and finite-lived intangible assets (e.g. customer lists) are tested for impairment upon the occurrence of a triggering event that indicates the carrying value of such an asset or asset group (e.g. tugs and barges), might be no longer recoverable. Examples of such triggering events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset(s), a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business.

Once a triggering event has occurred, the recoverability test employed is based on whether the intent is to hold the asset(s) for continued use or to hold the asset(s) for sale. If the intent is to hold the asset(s) for continued use, the recoverability test involves a comparison of undiscounted cash flows excluding interest expense, against the carrying value of the asset(s) as an initial test. If the carrying value of such asset(s) exceeds the undiscounted cash flow, the asset(s) would be deemed to be impaired. Impairment would then be measured as the difference between the fair value of the fixed or amortizing intangible asset and the carrying value of such asset(s). The Company generally determines fair value by using the discounted cash flow method. If the intent is to hold the asset(s) for sale and certain other criteria are met (i.e. the asset(s) can be disposed of currently, appropriate levels of authority have approved the sale and there is an actively pursuing buyer), the impairment test is a comparison of the asset’s carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company has determined that there were no adverse changes in our markets or other triggering events that could affect the valuation of our assets during the six month period ended September 30, 2013.

8

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment of goodwill

The Company annually reviews the carrying value of goodwill to determine whether impairment may exist. In accordance with Accounting Standards Codification (“ASC”) 350 “Intangibles-Goodwill and Other” and Accounting Standards Update (“ASU”) 2011-08 Intangibles—Goodwill and Other (Topic 350) - Testing Goodwill for Impairment requires that goodwill and certain intangible assets be assessed annually for impairment using fair value measurement techniques. Specifically, goodwill impairment is determined using a three-step process. The first step of the goodwill impairment test is to perform a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. The second step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The estimates of fair value of the Company’s two reporting units, which are the Company’s Canadian and US operations (excluding the parent), are determined using various valuation techniques with the primary techniques being a discounted cash flow analysis and peer analysis. A discounted cash flow analysis requires various judgmental assumptions, including assumptions about future cash flows, growth rates, and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s forecast and long-term estimates. Discount rate assumptions are based on an assessment of the risk inherent in the respective reporting units. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The third step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit.  As of March 31, 2013, the Company conducted the qualitative assessment and determined that the fair value of its two reporting units exceeded their carrying amounts and the remaining two-step impairment testing was therefore not necessary.  The Company has determined that there were no adverse changes in our markets or other triggering events that indicated that it is more likely than not that the fair value of our reporting units is less than the carrying value of our reporting units during the six month period ended September 30, 2013.

Drydock costs

Drydock costs incurred during statutory Canadian and United States certification processes are capitalized and amortized on a straight-line basis over the benefit period, which is generally 60 months. Drydock costs include costs of work performed by third party shipyards and subcontractors and other direct expenses to complete the mandatory certification process.

Repairs and maintenance

The Company’s vessels require repairs and maintenance each year to ensure the fleet is operating efficiently during the shipping season.  The majority of repairs and maintenance are completed in January, February, and March of each year when the vessels are inactive.  The Company expenses such routine repairs and maintenance costs.  Significant repairs to the Company’s vessels (whether owned or available to the Company under a time charter), such as major engine overhauls and major hull steel repairs, are capitalized and amortized over the remaining useful life of the upgrade or asset repaired, or the remaining lease term.

9

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

The Company accounts for income taxes in accordance with ASC 740 “Income Taxes”, which requires the determination of deferred tax assets and liabilities based on the differences between the financial statement and income tax bases of tax assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse.  A valuation allowance is recognized, if necessary, to measure tax benefits to the extent that, based on available evidence, it is more likely than not that they will be realized.

The Company classifies interest expense related to income tax liabilities, when applicable, as part of the interest expense in its consolidated statements of operations rather than income tax expense.  To date, the Company has not incurred material interest expenses or penalties relating to assessed taxation amounts.

There have been no recent examinations by the U.S. taxing authorities. Lower Lakes was examined by the Canadian taxing authority for the tax years 2009 and 2010 and such examination is now complete.  This audit did not result in any material adjustments for such periods. The Company's primary U.S. state income tax jurisdictions are Illinois, Indiana, Michigan, Minnesota, Pennsylvania, Wisconsin, Ohio and New York and its only international jurisdictions are Canada and its province of Ontario. The following table summarizes the open fiscal tax years for each major jurisdiction:

Jurisdiction	Open Tax Years
Federal (USA)	2009 – 2013
Various states	2009 – 2013
Federal (Canada)	2008 – 2013
Ontario	2008 – 2013

Foreign currency translation

The Company uses the U.S. Dollar as its reporting currency.  The functional currency of the Company's Canadian subsidiaries is the Canadian Dollar.  The functional currency of the Company’s U.S. subsidiaries is the U.S. Dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the rate of exchange at the balance sheet date, while revenue and expenses are translated at the average exchange rates prevailing during the respective month.  Components of stockholders’ equity are translated at historical exchange rates.  Exchange gains and losses resulting from translation are reflected in accumulated other comprehensive income or loss.

Advertising costs

The Company expenses all advertising costs as incurred. These costs are included in general and administrative costs and were insignificant during the periods presented.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include the assumptions used in determining the useful lives of long-lived assets, the assumptions used in determining whether assets are impaired, the assumptions used in determining the valuation allowance for deferred income tax assets and the assumptions used in stock based compensation awards. Actual results could differ from those estimates.

10

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Stock-based compensation

The Company recognizes compensation expense for all newly granted awards and awards modified, repurchased or cancelled based on fair value at the date of grant.

Financial instruments

The Company accounted for its two expired interest rate swap contracts on its term debt utilizing ASC 815 “Derivatives and Hedging”. All changes in the fair value of such swap contracts were recorded in earnings. The fair value of settlement costs, when the contracts were in place, were included in current liabilities on the consolidated balance sheets. No liability remains. Disclosure requirements of ASC 815 are disclosed in Note 21.

Fair value of financial instruments

ASC 820 “Fair Value Measurements and Disclosures” ("ASC 820") defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and establishes a hierarchy that categorizes and prioritizes the inputs to be used to estimate fair value. The three levels of inputs used are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The disclosure requirements of ASC 820 related to the Company’s financial assets and liabilities are presented in Note 21.

3. RECENTLY ISSUED PRONOUNCEMENTS

Disclosures about offsetting assets and liabilities

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about offsetting assets and liabilities" ("ASU 2011-11"). ASU 2011-11 requires entities to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position. The amendments require enhanced disclosure by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company adopted ASU 2010-11 as of April 1, 2013. Such adoption had no impact on the Company's consolidated financial statements.

11

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

3.    RECENTLY ISSUED PRONOUNCEMENTS (continued)

Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the amendments in ASU 2013-05 resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes referred to as step acquisitions) involving a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of ASU 2013-05 to have a material effect on the Company's consolidated financial statements.

Presentation of Unrecognized Tax Benefits

In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss ("NOL") Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). The provisions of the rule require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for an NOL carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new financial statement presentation provisions relating to this update are prospective and effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company does not anticipate a material impact to the consolidated financial statements related to this guidance.

12

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

4. ACCOUNTS RECEIVABLE

Trade receivables are presented net of an allowance for doubtful accounts. The allowance was $15 as of September 30, 2013 and $49 as of March 31, 2013. The Company manages and evaluates the collectability of its trade receivables as follows: management reviews aged accounts receivable listings and contact is made with customers that have extended beyond agreed upon credit terms. Senior management and operations are notified so that when they are contacted by such customers for a future delivery, they can request that the customer pay any past due amounts before any future cargo is booked for shipment. Customer credit risk is also managed by reviewing the history of payments by the customer, the size and credit quality of the customer, the period of time remaining within the shipping season and demand for future cargos.

5.PREPAIDEXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets are comprised of the following:

	September 30, 2013		March 31, 2013
Prepaid insurance	$	491	$	334
Fuel and lubricants	5,689		5,063
Deposits and other prepaids	2,171		2,445
	$	8,351	$	7,842

6. INCOME TAXES

The Company's effective tax rate was a deferred tax expense of 68.3% for the six month period ended September 30, 2013 compared to a deferred tax expense of 38.8% for the six month period ended September 30, 2012. The increase in effective tax rate was primarily due to changes in permanent differences, discrete items and the magnitude of the forecasted full year permanent differences compared to the forecasted full year income before income taxes for the year ending March 31, 2014.

The effective tax rate for the six month period ended September 30, 2013 was higher than the statutory tax rate due to the comparative magnitude of the domestic permanent differences, which primarily include imputed interest, partially offset by foreign earnings being subject to a lower statutory tax rate.

The Company had no unrecognized tax benefits as of September 30, 2013. The Company did not incur any income tax related interest expense or penalties related to uncertain tax positions during each of the six month periods ended September 30, 2013 and September 30, 2012.

13

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

7. PROPERTY AND EQUIPMENT

Property and equipment are comprised of the following:

	September 30, 2013		March 31, 2013
Cost
Vessels	$	263,919	$	264,685
Leasehold improvements	3,779		3,779
Furniture and equipment	500		494
Vehicles	21		21
Computer, communication equipment and purchased software	2,945		2,912
	$	271,164	$	271,891
Accumulated depreciation
Vessels	$	57,152	$	49,404
Leasehold improvements	1,727		1,496
Furniture and equipment	229		200
Vehicles	14		13
Computer, communication equipment  and purchased software	1,814		1,694
	60,936		52,807
	$	210,228	$	219,084

8. OTHER ASSETS

Other assets includes certain customer contract related expenditures, which are amortized over a five year period.

	September 30, 2013		March 31, 2013
Customer contract costs	$	955	$	1,156
Prepaid expenses and other assets	8,309		7,736
Total	$	9,264	$	8,892
Current portion	8,351		7,842
Other long term assets	$	913	$	1,050

14

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

9. DEFERRED DRYDOCK COSTS

Deferred drydock costs are comprised of the following:

	September 30, 2013			March 31, 2013
Drydock expenditures	$	16,632		$	19,477
Accumulated amortization	(6,156		)	(8,582		)
	$	10,476		$	10,895

The following table shows periodic deferrals of drydock costs and amortization.

Balance as of March 31, 2012	$	9,879
Drydock costs accrued	4,656
Amortization of drydock costs	(3,497		)
Foreign currency translation adjustment	(143		)
Balance as of March 31, 2013	$	10,895
Drydock costs accrued	1,338
Amortization of drydock costs	(1,667		)
Foreign currency translation adjustment	(90		)
Balance as of September 30, 2013	$	10,476

15

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

10. INTANGIBLE ASSETS AND GOODWILL

Intangibles are comprised of the following:

	September 30, 2013		March 31, 2013
Intangible assets:
Deferred financing costs	$	2,119	$	2,120
Trademarks and trade names	1,000		1,010
Customer relationships and contracts	17,748		17,926
Total identifiable intangibles	$	20,867	$	21,056
Accumulated amortization:
Deferred financing costs	$	579	$	309
Trademarks and trade names	758		715
Customer relationships and contracts	7,934		7,420
Total accumulated amortization	9,271		8,444
Net intangible assets	$	11,596	$	12,612
Goodwill	$	10,193	$	10,193

Intangible asset amortization over the next five years is estimated as follows:

Twelve month period ending:

September 30, 2014	$	1,824
September 30, 2015	1,824
September 30, 2016	1,684
September 30, 2017	1,183
September 30, 2018	1,183
	$	7,698

11. VESSEL ACQUISITIONS

On February 11, 2011, Black Creek and Black Creek Holdings entered into, and consummated the transactions contemplated by, an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Reserve Holdings, LLC (“Reserve”), and Buckeye Holdings, LLC (“Buckeye” and, together with Reserve, the “Sellers”).  Under the Asset Purchase Agreement, Black Creek purchased two articulated tug/barge units (the “Vessels”) for consideration consisting of (i) $35,500 cash paid at closing, (ii) $3,600 cash to be paid by Black Creek Holdings in 72 monthly installments of $50 beginning on April 15, 2011 (the "Deferred Payments"); (iii) a promissory note of Black Creek Holdings in the principal amount of $1,500 (the “Note”), as described below; and (iv) 1,305,963 shares of the Company’s common stock (the “Shares”).

16

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

11. VESSEL ACQUISITIONS (continued)

The estimated fair values of assets acquired were as follows:

Current assets	$	94
Property and equipment	45,000
Other identifiable intangible assets	1,836
	$	46,930

The Asset Purchase Agreement provided for the Sellers to use their commercially reasonable efforts to seek the consent to the assignment to Black Creek of certain vessel transportation agreements pursuant to which the Sellers and their affiliates provide freight transportation services to third parties (each such agreement, a “VTA”).  As of March 31, 2011, all of the VTAs had been assigned to Black Creek.  The Asset Purchase Agreement also provided for Black Creek to assume the Sellers’ and their affiliates’ obligations relating to winter work and maintenance that was being performed on the Vessels at the time of their acquisition.

The Note, dated February 11, 2011, bore interest at a rate of 6% per annum, and all principal and interest thereon was due and paid on December 15, 2011.

On February 11, 2011, the Company entered into a guaranty (the “Guaranty”) to and for the benefit of each of the Sellers pursuant to which the Company guaranteed Black Creek Holdings’ obligation to make the Deferred Payments and its obligations under the Note.

The acquisition of the Vessels was financed in part by the Black Creek credit agreement described in Note 14 and the issuance of the Shares.

On July 21, 2011, Lower Lakes completed the acquisition of the MARITIME TRADER (the "Trader"), a Canadian-flagged dry bulk carrier, pursuant to the terms of an asset purchase agreement, dated as of July 8, 2011, by and between the Company and Marcon International Inc., in its capacity as court-appointed seller of the Trader.  Pursuant to the terms of such asset purchase agreement, Lower Lakes’ acquisition of the Trader was subject only to the final approval of the Federal Court of Canada, which approval was granted on July 15, 2011.  Lower Lakes purchased the Trader for an aggregate purchase price of CDN $2,667 with borrowings under the Canadian term loan. Following its acquisition, the Trader was renamed the MANITOBA.

On October 14, 2011, Lower Lakes completed the acquisition of the bulk carrier TINA LITRICO (the "Tina"), pursuant to the terms of an Asset Purchase Agreement, dated as of September 21, 2011, by and among Lower Lakes, Grand River and U.S. United Ocean Service, LLC ("USUOS"). Lower Lakes purchased the Tina for $5,250, plus the value of the remaining bunkers and unused lubricating oils on board the Tina at the closing of the acquisition. The acquisition was funded by the proceeds from the equity offering described in Note 17. Following its acquisition, the Tina was renamed the TECUMSEH.

On December 1, 2011, Grand River entered into, and consummated the transactions contemplated by, an Asset Purchase Agreement (the “Barge Agreement”) with U.S. Bank National Association, as Trustee of the GTC Connecticut Statutory Trust, pursuant to which Grand River acquired a self-unloading barge MARY TURNER (the “Barge”). The purchase price for the Barge, together with the related stores and equipment, was $11,954 plus the value of the remaining bunkers and unused lubricating oils onboard the Barge at the closing of the acquisition. Following its acquisition, the Barge was renamed the ASHTABULA.

Also on December 1, 2011, Grand River completed the acquisition of a tug BEVERLY ANDERSON (the “Tug”), pursuant to the terms of an Asset Purchase Agreement, dated as of September 21, 2011 (the “Tug Agreement”), by and between Grand River and USUOS. Grand River purchased the Tug for $7,796 plus the value of the remaining bunkers and unused lubricating oils on board the Tug at the closing of the acquisition. Following its acquisition, the Tug was renamed the DEFIANCE.

The acquisitions of the Barge and the Tug were funded with additional borrowings under the US term loan as described in Note 14.

17

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

12. BANK INDEBTEDNESS

As discussed in detail in Note 14, on August 30, 2012, Lower Lakes, Lower Lakes Transportation, Grand River and Black Creek, as borrowers, and Rand LL Holdings, Rand Finance, Black Creek Holdings and the Company, as guarantors, entered into a Third Amended and Restated Credit Agreement (the “Third Amended and Restated Credit Agreement”) with General Electric Capital Corporation, as agent and a lender, and certain other lenders, which amends and restates the Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) entered on September 28, 2011, as the same was amended from time to time. Also, on March 29, 2013, the Company entered into a First Amendment (the “First Amendment”) to the Third Amended and Restated Credit Agreement, which amendment is also discussed in Note 14.

As of September 30, 2013 and March 31, 2013, the Company had authorized operating lines of credit under the Third Amended and Restated Credit Agreement in the amounts of CDN $13,500 and US $13,500, and was utilizing CDN $6,500 as of September 30, 2013 and CDN $2,925 as of March 31, 2013 and US $5,500 as of September 30, 2013 and $3,118 as of March 31, 2013, and maintained letters of credit of CDN $100 as of September 30, 2013 and March 31, 2013.

The Third Amended and Restated Credit Agreement provides that the line of credit bears interest, at the borrowers' option, at Canadian Prime Rate plus 3.75% or Canadian 30 day BA rate plus 4.75% on Canadian Dollar borrowings, and the U.S. Base rate plus 3.75% or LIBOR plus 4.75% on U.S. Dollar borrowings, compared to a Canadian Prime Rate plus 3.5% or Canadian 30 day BA rate plus 4.5% on Canadian Dollar borrowings and a U.S. Base rate plus 3.5% or LIBOR plus 4.5% on U.S. Dollar borrowings through August 30, 2012 under the Second Amended and Restated Credit Agreement, and is subject to the terms and conditions described in Note 14. Available collateral for borrowings and letters of credit are based on eligible accounts receivable, which are limited to 85% of those receivables that are not over 90 days old, not in excess of 20%-30% per customer in each line and certain other standard limitations. As of September 30, 2013, the Company had credit availability of US $4,412 on the combined lines of credit based on eligible receivables and the seasonal overadvance facilities.

13. ACCRUED LIABILITIES

Accrued liabilities are comprised of the following:

	September 30, 2013		March 31, 2013
Deferred financing and other transaction costs	$	—	$	26
Payroll compensation and benefits	3,326		1,926
Preferred stock dividends	15,189		13,456
Professional fees	363		385
Interest	414		754
Winter work, deferred drydock expenditures and capital expenditures	14		2,438
Capital and franchise taxes	53		113
Other	1,629		2,218
	$	20,988	$	21,316

18

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

14. LONG-TERM DEBT

		September 30, 2013		March 31, 2013
a)	Canadian term loan bearing interest at Canadian Prime rate plus 3.75% (3.75% at March 31, 2013) or Canadian BA rate plus 4.75% (4.75% at March 31, 2013) at the Company’s option.  The loan is repayable until August 1, 2016 with quarterly payments of CDN $331 commencing December 1, 2012, increasing to CDN $662 commencing December 1, 2014 and the balance due August 1, 2016.	$	50,135	$	51,493
b)	Grand River US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $401 commencing December 1, 2012, increasing to US $802 commencing December 1, 2014 and the balance due on August 1, 2016. Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	62,524		63,325
c)	Black Creek US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $181 commencing December 1, 2012, increasing to US $362 commencing December 1, 2014, and the balance due August 1, 2016.   Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	28,210		28,572
		$	140,869	$	143,390
	Less amounts due within 12 months	3,612		3,630
		$	137,257	$	139,760

The effective interest rates on the term loans at September 30, 2013, including the effect from the expired interest rate swap contracts, were 6.03% (6.03% at March 31, 2013) on the Canadian term loan, and 5.01% (5.88% at March 31, 2013) on the Grand River US term loan and Black Creek US term loan. The actual interest rates charged without the effect of interest rate swap contracts were 6.03% (6.04% at March 31, 2013) on the Canadian term loan, 5.01% (5.04% at March 31, 2013) on the Grand River US term loan, and 5.01% (5.04% at March 31, 2013) on the Black Creek US term loan.

Principal payments are due as follows:

Twelve month period ending:

September 30, 2014	$	3,612
September 30, 2015	7,224
September 30, 2016	130,033
	$	140,869

19

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

14. LONG-TERM DEBT (continued)

On August 30, 2012, Lower Lakes, Lower Lakes Transportation, Grand River and Black Creek, as borrowers, Rand LL Holdings, Rand Finance, Black Creek Holdings and the Company, as guarantors, General Electric Capital Corporation, as agent and Lender, and certain other lenders, entered into the Third Amended and Restated Credit Agreement which (i) amends and restates the Second Amended and Restated Credit Agreement in its entirety, (ii) continues the tranches of loans provided for under the Second Amended and Restated Credit Agreement, (iii) refinances the indebtedness of Black Creek under its existing credit facility and adds Black Creek as a U.S. Borrower, (iv) provides for certain new loans and (v) provides working capital financing, funds for other general corporate purposes and funds for other permitted purposes. The Third Amended and Restated Credit Agreement provides for (i) a revolving credit facility including letters of credit under which Lower Lakes may borrow up to CDN $13,500 with a seasonal overadvance facility of US $12,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Transportation, and a swing line facility of CDN $4,000, subject to limitations, (ii) a revolving credit facility under which Lower Lakes Transportation may borrow up to US $13,500 with a seasonal overadvance facility of US $12,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes, and a swing line facility of US $50, subject to limitations, (iii) the modification and continuation of an existing Canadian dollar denominated term loan facility under which Lower Lakes is obligated to the Lenders in the amount of CDN $52,979 as of the date of the Third Amended and Restated Credit Agreement (“CDN Term Loan”), (iv) the modification and continuation of a US dollar denominated term loan facility under which Grand River is obligated to the Lenders in the amount of $64,127 as of the date of the Third Amended and Restated Credit Agreement (“Grand River Term Loan”) and (v) a US dollar denominated term loan facility under which Black Creek is obligated to Lenders in the amount of $28,934 as of the date of the Third Amended and Restated Credit Agreement (“Black Creek Term Loan”).

Under the Third Amended and Restated Credit Agreement, the revolving credit facilities and swing line loans expire on August 1, 2016. The outstanding principal amount of the CDN Term Loan borrowings is repayable as follows: (i) quarterly payments of CDN $331 commencing December 1, 2012 and ending September 2014, (ii) quarterly payments of CDN $662 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the CDN Term Loan upon the CDN Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Grand River Term Loan borrowings is repayable as follows: (i) quarterly payments of US $401 commencing December 1, 2012 and ending on September 1, 2014, (ii) quarterly payments of US $802 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Grand River Term Loan upon the Grand River Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Black Creek Term Loan borrowings is repayable as follows: (i) quarterly payments of US $181 commencing quarterly December 1, 2012 and ending September 1, 2014, (ii) quarterly payments of US $362 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Black Creek Term Loan upon the Black Creek Term Loan's maturity on August 1, 2016.

Borrowings under the Canadian revolving credit facility, Canadian swing line facility and the CDN Term Loan bear an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum or (ii) the BA Rate (as defined in the Third Amended and Restated Credit Agreement) plus 4.75% per annum. Borrowings under the US revolving credit facility, US swing line facility and the Grand River Term Loan and Black Creek Term Loan bear interest, at the borrowers' option equal to (i) LIBOR (as defined in the Third amended and Restated Credit Agreement) plus 4.75% per annum, or (ii) the US Base Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum. Obligations under the Third Amended and Restated Credit Agreement are secured by (i) a first priority lien and security interest on all of the borrowers' and guarantors' assets, tangible or intangible, real, personal or mixed, existing and newly acquired, (ii) a pledge by Rand LL Holdings of all of the outstanding capital stock of the borrowers other than Black Creek; (iii) a pledge by Black Creek Holdings of most of the outstanding capital stock of Black Creek; and (iv) a pledge by Rand of all of the outstanding capital stock of Rand LL Holdings, Rand Finance and Black Creek Holdings. The indebtedness of each borrower under the Third Amended and Restated Credit Agreement is unconditionally guaranteed by each other borrower and by the guarantors, and such guaranty is secured by a lien on substantially all of the assets of each borrower and each guarantor.

20

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

14. LONG-TERM DEBT (continued)

Under the Third Amended and Restated Credit Agreement, the borrowers are required to make mandatory prepayments of principal on term loan borrowings (i) if the outstanding balance of the term loans plus the outstanding balance of the seasonal facilities exceeds the sum of 75% of the fair market value of the vessels owned by the borrowers, less the amount of outstanding liens against the vessels with priority over the lenders' liens, in an amount equal to such excess, (ii) in the event of certain dispositions of assets and insurance proceeds (all subject to certain exceptions), in an amount equal to 100% of the net proceeds received by the borrowers therefrom, and (iii) in an amount equal to 100% of the net proceeds to a borrower from any issuance of a borrower's debt or equity securities.

The Third Amended and Restated Credit Agreement contains certain covenants, including those limiting the guarantors', the borrowers' and their subsidiaries' ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Third Amended and Restated Credit Agreement requires the borrowers to maintain certain financial ratios. Failure of the borrowers or the guarantors to comply with any of these covenants or financial ratios could result in the loans under the Third Amended and Restated Credit Agreement being accelerated.

As a result of the execution of the Third Amended and Restated Credit Agreement discussed above, the Company recognized a loss on extinguishment of debt of $3,339 during the fiscal year ended March 31, 2013, that consisted of the unamortized deferred financing costs in connection with previously existing financing arrangements.

On March 29, 2013, the Company entered into a First Amendment to the Third Amended and Restated Credit Agreement that modified such agreement's Minimum Fixed Charge Coverage Ratio, Minimum EBITDA, Maximum Senior Funded Debt to EBITDA Ratio and Maximum Capital Expenditures covenants and the definitions of EBITDA and Fixed Charge Coverage Ratio. As of September 30, 2013, the Company was in compliance with covenants contained in the Third Amended and Restated Credit Agreement, as amended.

On September 28, 2011, Lower Lakes, Lower Lakes Transportation and Grand River, as borrowers, Rand LL Holdings, Rand Finance and the Company, as guarantors, entered into the Second Amended and Restated Credit Agreement with General Electric Capital Corporation, as agent and a lender, and certain other lenders, which amended and restated the Amended and Restated Credit Agreement, as amended, in its entirety.

The Second Amended and Restated Credit Agreement continued the tranches of loans provided under the Amended and Restated Credit Agreement, and provided working capital financing, funds for other general corporate purposes and funds for other permitted purposes.  The Second Amended and Restated Credit Agreement provided for (i) a revolving credit facility under which Lower Lakes was able to borrow up to CDN $13,500 with a seasonal overadvance facility of US $10,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Transportation and a swing line facility of CDN $4,000 subject to limitations, (ii) a revolving credit facility under which Lower Lakes Transportation was able to borrow up to US $13,500 with a seasonal over advance facility of US $10,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes and a swing line facility of US $4,000, subject to limitations, (iii) a Canadian dollar denominated term loan facility under which Lower Lakes was obligated to the lenders in the amount of CDN $56,133 as of the date of the Second Amended and Restated Credit Agreement, (iv) the continuation of a US dollar denominated term loan facility under which Grand River was obligated to the lenders in the amount of US $17,233 as of the date of the Second Amended and Restated Credit Agreement, and (v) the continuation of a Canadian Dollar denominated “Engine” term loan facility under which Lower Lakes was obligated to the lenders in the amount of CDN $6,267 as of the date of the Second Amended and Restated Credit Agreement.

21

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

14. LONG-TERM DEBT (continued)

Under the Second Amended and Restated Credit Agreement, the revolving credit facilities and swing line loans were to expire on April 1, 2015. The outstanding principal amount of the Canadian term loan borrowings were repayable as follows: (i) quarterly payments of CDN $936 commencing December 1, 2011 and ending March 1, 2015 and (ii) a final payment in the outstanding principal amount of the Canadian term loan payable upon the Canadian term loan facility's maturity on April 1, 2015. The outstanding principal amount of the US term loan borrowings were repayable as follows: (i) quarterly payments of US $367 commencing December 1, 2011 and ending on March 1, 2015 and (ii) a final payment in the outstanding principal amount of the US term loan payable upon the US term loan facility's maturity on April 1, 2015. The outstanding principal amount of the Canadian “Engine” term loan borrowings were repayable as follows: (i) quarterly payments of CDN $133 commencing quarterly December 1, 2011 and ending March 1, 2015 and (ii) a final payment in the outstanding principal amount of the Engine term loan payable upon the Engine term loan facility's maturity on April 1, 2015.

Borrowings under the Canadian revolving credit facility, Canadian swing line facility and the Canadian term loan bore an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Second Amended and Restated Credit Agreement), plus 3.50% per annum or (ii) the BA Rate (as defined in the Second Amended and Restated Credit Agreement) plus 4.50% per annum.  Borrowings under the US revolving credit facility, US swing line facility and the US term loan bore interest, at the borrowers' option equal to (i) LIBOR (as defined in the Second amended and Restated Credit Agreement) plus 4.50% per annum, or (ii) the US Base Rate (as defined in the Second Amended and Restated Credit Agreement), plus 3.50% per annum.  Borrowings under the Canadian “Engine” term loan bore an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Second Amended and Restated Credit Agreement), plus 4.00% per annum or (ii) the BA Rate (as defined in the Amended and Restated Credit Agreement) plus 5.00% per annum. Obligations under the Second Amended and Restated Credit Agreement were secured by (i) a first priority lien and security interest on all of the borrowers' and guarantors' assets, tangible or intangible, real, personal or mixed, existing and newly acquired, (ii) a pledge by Rand LL Holdings of all of the outstanding capital stock of the borrowers and (iii) a pledge by the Company of all of the outstanding capital stock of Rand LL Holdings and Rand Finance. The indebtedness of each borrower under the Second Amended and Restated Credit Agreement was unconditionally guaranteed by each other borrower and by the guarantors, and such guaranty was secured by a lien on substantially all of the assets of each borrower and each guarantor.

On December 1, 2011, Lower Lakes Lower, Lakes Transportation, Grand River, and General Electric Capital Corporation, Inc., as Agent, entered into an amendment to the Second Amended and Restated Credit Agreement (the "Amendment"). The Amendment increased (i) the US Term Loan by US $25,000 (ii) the quarterly payments due under the US Term Loan from US $367 to US $704 beginning with the quarterly payment due in June 2012 and (iii) the seasonal overadvance revolving credit facility to US $12,000 subject to certain limitations. Additionally, the Amendment eliminated the quarterly payments due under the US Term Loan in December 2011 and March 2012. The Amendment also modified the definitions of “Capital Expenditures”, “Cdn. Vessels”, “EBITDA”, “Fleet Mortgage”, “Requisite Lenders”, “Requisite Revolving Lenders” and “US Owned Vessels” and amended the Minimum EBITDA, Maximum Senior Debt to EBITDA Ratio, Maximum Capital Expenditures, Minimum Appraised Value to Term Loan Outstandings and Minimum Liquidity covenants.

The Second Amended and Restated Credit Agreement, as amended, contained certain covenants, including those limiting the guarantors, the borrowers, and their subsidiaries' ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Second Amended and Restated Credit Agreement required the borrowers to maintain certain financial ratios.

22

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

14. LONG-TERM DEBT (continued)

On February 11, 2011, Black Creek, as borrower and Black Creek Holdings, as guarantor, General Electric Capital Corporation, as agent and lender, and certain other lenders, entered into a Credit Agreement (the “Black Creek Credit Agreement”) which (i) financed, in part, the acquisition of the Vessels by Black Creek described in Note 11, and (ii) provided funds for other transaction expenses.  The Black Creek Credit Agreement provided for a US Dollar denominated senior secured term loan under which Black Creek borrowed US $31,000.

The outstanding principal amount of the term loan was repayable as follows: (i) quarterly payments of US $517 commencing September 30, 2011 and ending December 31, 2013 and (ii) a final payment in the outstanding principal amount of the term loan payable upon the term loan maturity on February 11, 2014.

The term loan bore an interest rate per annum, at Black Creek's option, equal to (i) LIBOR (as defined in the Black Creek Credit Agreement) plus 4.75% per annum, or (ii) the US Base Rate (as defined in the Black Creek Credit Agreement), plus 3.75% per annum. Obligations under the Black Creek Credit Agreement were secured by (i) a first priority lien and security interest on all of Black Creek's and Black Creek Holdings' assets, tangible or intangible, real, personal or mixed, existing and newly acquired and (ii) a pledge by Black Creek Holdings of all of the outstanding capital stock of Black Creek.  The indebtedness of Black Creek under the Black Creek Credit Agreement was unconditionally guaranteed by the guarantor, and such guarantee is secured by a lien on substantially all of the assets of Black Creek and Black Creek Holdings.

Under the Black Creek Credit Agreement, Black Creek was required to make mandatory prepayments of principal on the term loan (i) in the event of certain dispositions of assets and insurance proceeds (as subject to certain exceptions), in an amount equal to 100% of the net proceeds received by Black Creek therefrom, and (ii) in an amount equal to 100% of the net proceeds to Black Creek from any issuance of Black Creek's debt or equity securities.

On December 1, 2011, The Black Creek Credit Agreement was amended to change the payment due on March 31, 2012 to April 2, 2012, and the payment due on June 30, 2012 to July 2, 2012.

The Black Creek Credit Agreement, as amended, contained certain covenants, including those limiting the guarantor's and Black Creek's ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends.  In addition, the Black Creek Credit Agreement required Black Creek to maintain certain financial ratios.  

All outstanding amounts due under the Black Creek Credit Agreement were repaid in connection with the refinancing of Black Creek's indebtedness under the Third Amended and Restated Credit Agreement, as more fully described above.

23

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

15. COMMITMENTS

The Company did not have any leases which met the criteria of a capital lease as of September 30, 2013. Leases which do not qualify as capital leases are classified as operating leases. Operating lease rental and sublease rental payments included in general and administrative expenses are as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Operating leases	$	146	$	108	$	277	$	212
Operating sublease	40		39		79		77
	$	186	$	147	$	356	$	289

The Company’s future minimum rental commitments under other operating leases are as follows.

Twelve month period ending:

September 30, 2014	$	492
September 30, 2015	415
September 30, 2016	299
September 30, 2017	241
September 30, 2018	211
Thereafter	578
	$	2,236

The Company is party to a bareboat charter agreement for the McKee Sons barge that expires in December 2018.  The chartering cost included in vessel operating expenses was $254 for the three month period ended September 30, 2013 ($249 for the three month period ended September 30, 2012) and $507 for six month period ended September 30, 2013 ($498 for the six month period ended September 30, 2012). The lease was amended on February 22, 2008 to provide a lease payment deferment in return for leasehold improvements. The lease contains a clause whereby annual payments escalate at the Consumer Price Index, capped at a maximum annual increase of 3%. Total charter commitments for the McKee Sons vessel for the term of the lease before inflation adjustments are set forth below. 

Twelve month period ending:

September 30, 2014	$	760
September 30, 2015	760
September 30, 2016	760
September 30, 2017	760
September 30, 2018	760
Thereafter	253
	$	4,053

As of September 30, 2013, Lower Lakes had signed contractual commitments with several suppliers totaling $124 ($731 as of March 31, 2013) in connection with capital expenditure and drydock projects.

24

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

16. CONTINGENCIES

The Company is not involved in any legal proceedings which are expected to have a material effect on its business, financial position, results of operations or liquidity, nor is the Company aware of any proceedings that are pending or threatened which may have a material effect on the Company’s business, financial position, results of operations or liquidity.  From time to time, Lower Lakes may be subject to legal proceedings and claims in the ordinary course of business involving principally commercial charter party disputes, and claims for alleged property damages, personal injuries and other matters. Those claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources.  It is expected that larger claims would be covered by insurance, subject to customary deductibles, if they involve liabilities that may arise from allision, other marine casualty, damage to cargoes, oil pollution, death or personal injuries to crew. The Company evaluates the need for loss accruals under the requirements of ASC 450 – Contingencies.  The Company records an estimated loss for any claim, lawsuit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can reasonably be estimated. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate, then the Company records the minimum amount in the range as the loss accrual. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. As of September 30, 2013 an accrual of $363 ($490 as of March 31, 2013) was recorded for various claims.  Management does not anticipate material variations in actual losses from the amounts accrued related to these claims.

17. STOCKHOLDERS’ EQUITY

On September 21, 2011, the Company completed a public underwritten offering of 2,800,000 shares of the Company’s common stock for $6.00 per share.  The Company’s proceeds from the offering, net of underwriter’s commissions and expenses, were $15,525.

On February 11, 2011, in connection with the transactions contemplated by the Asset Purchase Agreement with the Sellers discussed in Note 11, the Company issued 1,305,963 shares of the Company’s common stock to Buckeye. Such shares were valued at the average of high and low price on that day of $5.175.

The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences that may be determined from time to time by the Board of Directors. The shares of the Company’s series A convertible preferred stock: rank senior to the Company’s common stock with respect to liquidation and dividends; are entitled to receive a cash dividend at the annual rate of 7.75% (based on the $50 per share issue price) payable quarterly (subject to increases of 0.5% for each six month period in respect of which the dividend is not timely paid, up to a maximum of 12%, subject to reversion to 7.75% upon payment of all accrued and unpaid dividends); are convertible into shares of the Company’s common stock at any time at the option of the series A preferred stockholder at a conversion price of $6.20 per share (based on the $50 per share issue price and subject to adjustment) or 8.065 shares of common stock for each Series A Preferred Share (subject to adjustment); are convertible into shares of the Company’s common stock (based on a conversion price of $6.20 per share, subject to adjustment) at the option of the Company if, after the third anniversary of the acquisition, the trading price of the Company’s common stock for 20 trading days within any 30 trading day period equals or exceeds $8.50 per share (subject to adjustment); may be redeemed by the Company in connection with certain change of control or acquisition transactions; will vote on an as-converted basis with the Company’s common stock; and have a separate vote over certain material transactions or changes involving the Company.

The accrued preferred stock dividends payable at September 30, 2013 were $15,189 and at March 31, 2013 were $13,456. As of September 30, 2013, and as of March 31, 2013, the effective rate of preferred dividends was 12% (maximum). The Company is limited in the payment of preferred dividends by the fixed charge coverage ratio covenant in the Third Amended and Restated Credit Agreement.

25

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

17.    STOCKHOLDERS’ EQUITY (continued)

On October 13, 2009, the Company awarded 39,660 shares at the average of high and low share price on that day of $3.17 to a key executive in connection with an Employment Agreement. 20% of such shares vest on March 31^st of each of the five succeeding anniversaries beginning March 31, 2010. The Company recorded expense related to such award of $7 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $13 for each of the six month periods ended September 30, 2013 and September 30, 2012 related to such award.

On February 24, 2010 the Company issued 76,691 shares to two key executives pursuant to Restricted Share Award Agreements.  Such shares were valued at the average of high and low share price on that day of $4.34. The Company recorded expense of $Nil related to such awards for the three month period ended September 30, 2013, $28 for the three month period ended September 30, 2012, $Nil for the six month period ended September 30, 2013 and $56 for the six month period ended September 30, 2012. Such shares vested over three years in equal installments on each of the anniversary dates in 2011, 2012 and 2013.

On April 5, 2010 the Company issued an aggregate of 37,133 shares to four key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.32. The Company recorded expense of $Nil related to such awards for the three month period ended September 30, 2013, $17 for the three month period ended September 30, 2012, $Nil for the six month period ended September 30, 2013 and $33 for the six month period ended September 30, 2012. The April 5, 2010 grants vested over three years in equal installments on each of such awards' anniversary dates in 2011, 2012 and 2013.

On April 8, 2011, the Company issued 86,217 shares to six key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $7.94. The Company recorded expense related to such awards of $56 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $113 for each of the six month periods ended September 30, 2013 and September 30, 2012. The April 8, 2011 grants vest over three years in equal installments on each of such awards' anniversary dates in 2012, 2013 and 2014.

On April 5, 2012, the Company issued 45,754 shares to two key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $8.68. The Company recorded expense related to such awards of $33 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $66 for each of the six month periods ended September 30, 2013 and September 30, 2012. The April 5, 2012 grants vest over three years in equal installments on each of such awards' anniversary dates in 2013, 2014 and 2015.

On February 22, 2013, the Company issued 32,387 shares to four key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.96. The Company recorded expense related to such awards of $25 for the three month period ended September 30, 2013 and $49 for the six month period ended September 30, 2013. The February 22, 2013 grants vest over two years in equal installments on each of such awards' anniversary dates in 2014 and 2015.

On June 5, 2013, the Company issued 54,337 shares to six key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.55. The Company recorded expense related to such awards of $25 for the three month period ended September 30, 2013 and $33 for the six month period ended September 30, 2013. The June 5, 2013 grants vest over three years in equal installments on each of such awards' anniversary dates in 2014, 2015 and 2016.

Since January 2007, share-based compensation has been granted to management and directors from time to time.  The Company had no surviving, outstanding share-based compensation agreements with employees or directors prior to that date except as described above.  The Company has reserved 2,500,000 shares for issuance under the Company’s 2007 Long Term Incentive Plan (the “LTIP”) to employees, officers, directors and consultants.  At September 30, 2013, a total of 597,796 shares (662,659 shares at March 31, 2013) were available under the LTIP for future awards.

26

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

17.    STOCKHOLDERS’ EQUITY (continued)

For all share-based compensation, as employees and directors render service over the vesting periods, expense is recorded in general and administrative expenses. Generally this expense is for the straight-line amortization of the grant date fair market value adjusted for expected forfeitures. Grant date fair market value for all non-option share-based compensation is the average of the high and low trading prices on the date of grant.

The general characteristics of issued types of share-based awards granted under the LTIP through September 30, 2013 are as follows:

Stock Awards - All of the shares issued to non-employee outside directors vest immediately.  The first award to non-employee outside directors in the amount of 12,909 shares was made on February 13, 2008 for services through March 31, 2008.  During the fiscal year ended March 31, 2009, the Company awarded 15,948 shares for services from April 1, 2008 through December 31, 2008. The Company awarded 37,144 shares during the fiscal year ended March 31, 2010 for services from January 1, 2009 through March 31, 2010. During the fiscal year ended March 31, 2011, the Company awarded 14,007 shares for services provided from April 1, 2010 through March 31, 2011. During the fiscal year ended March 31, 2012, the Company awarded 10,722 shares for services from April 1, 2011 to March 31, 2012. During the fiscal year ended March 31, 2013, the Company awarded 10,854 shares for services provided from April 1, 2012 to March 31, 2013. During the six month period ended September 30, 2013, the Company awarded 10,526 shares for services provided from April 1, 2013 to September 30, 2013. Grant date fair market value for all these awards is the average of the high and low trading prices of the Company’s common stock on the date of grant.

On July 31, 2008, the Company’s Board of Directors authorized management to make payments effective as of that date to the participants in the management bonus program. Pursuant to the terms of the management bonus program, the Company issued 478,232 shares of common stock to such employee participants.

Stock Options - Stock options granted to management employees vest over three years in equal annual installments. All options issued through September 30, 2013 expire ten years from the date of grant. Stock option grant date fair values are determined at the date of grant using a Black-Scholes option pricing model, a closed-form fair value model based on market prices at the date of grant. At each grant date the Company has estimated a dividend yield of 0%.  The weighted average risk free interest rate within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant, which was 4.14% for the fiscal 2009 (July 2008) grant. Expected volatility for the fiscal 2009 grants was based on the prior 26 week period, which reflected trading and volume after the Company made major announcements on acquisitions and capital investments. Expected volatility was 39.49% for the fiscal 2009 grant. Options outstanding (479,785) at September 30, 2013, had a remaining weighted average contractual life of approximately four years and eight months.  The Company recorded compensation expenses of $Nil for the six month periods ended September 30, 2013 and September 30, 2012, respectively. All of the stock options granted in February 2008 (243,199) and July 2008 (236,586), had vested as of September 30, 2013.

Shares issued under Employees’ Retirement Savings Plans - The Company issued an aggregate of 204,336 shares to the individual retirement plans of all eligible Canadian employees under the LTIP from July 1, 2009 through September 30, 2013.  The Canadian employees’ plans are managed by independent brokerages. These shares vested immediately but are subject to the Company’s Insider Trading Policy. The shares were issued using the fair value share price, as defined by the LTIP, as of the first trading day of each month for that previous period’s accrued expense. The Company granted $Nil of equity of such accrued compensation expense for each of the six month periods ended September 30, 2013 and September 30, 2012.

27

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

17. STOCKHOLDERS’ EQUITY (continued)

Shares issued in lieu of cash compensation - The Company experienced a decrease in customer demand at the beginning of the 2009 sailing season and in an effort to maximize the Company’s liquidity, the Compensation Committee of the Company’s Board of Directors requested that five of the Company’s executive officers and all of its outside directors receive common stock as compensation in lieu of cash until the Company had better visibility about its outlook. As of November 16, 2009, the Company issued 158,325 shares to such officers and all of its outside directors at the average of the high and low trading prices Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately. Beginning the third quarter of the fiscal year ended March 31, 2010, such executives and outside directors’ compensation reverted back to cash compensation.

On September 16, 2010, the Company issued 15,153 shares to a key executive for payment of the fiscal year 2010 bonus at the average of the high and low trading prices of the Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately. On February 15, 2013, the Company issued 94,993 shares to eligible Canadian and US employees for a bonus at the average of the high and low trading prices of the Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately.

18. OUTSIDEVOYAGE CHARTER FEES

Outside voyage charter fees relate to the subcontracting of external vessels chartered to service the Company’s customers and supplement the existing shipments made by the Company’s operated vessels.

19. INTEREST EXPENSE

Interest expense is comprised of the following:

	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Bank indebtedness	$	245	$	282		$	526	$	533
Amortization of deferred financing costs	135		219			271		547
Long-term debt	1,928		1,949			3,862		3,745
Interest rate swaps	—		280			—		564
Interest rate caps	2		—			3		—
Deferred payment liability	35		44			72		89
Interest capitalized	—		(538		)	—		(538		)
	$	2,345	$	2,236		$	4,734	$	4,940

28

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

20. SEGMENT INFORMATION

The Company has identified only one reportable segment under ASC 280 “Segment Reporting”.

Information about geographic operations is as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Revenue by country:
Canada	$	28,522	$	30,538	$	56,966	$	62,311
United States	22,019		20,033		41,976		37,872
	$	50,541	$	50,571	$	98,942	$	100,183

Revenues from external customers are allocated based on the country of the legal entity of the Company in which the revenues were recognized.

	September 30, 2013		March 31, 2013
Property and equipment by country:
Canada	$	96,048	$	100,887
United States	114,180		118,197
	$	210,228	$	219,084
Intangible assets by country:
Canada	$	7,417	$	8,081
United States	4,179		4,531
	$	11,596	$	12,612
Goodwill by country:
Canada	$	8,284	$	8,284
United States	1,909		1,909
	$	10,193	$	10,193
Total assets by country:
Canada	$	135,244	$	134,230
United States	138,906		136,608
	$	274,150	$	270,838

29

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

21. FINANCIAL INSTRUMENTS

Fair value of financial instruments

Financial instruments are comprised of cash and cash equivalents, accounts receivable, accounts payable, long-term debts, a subordinated note, a deferred payment liability, accrued liabilities and bank indebtedness.  The estimated fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate book values because of the short-term maturities of these instruments.  The estimated fair value of senior debt approximates the carrying value as the debt bears interest at variable interest rates, which are based on rates for similar debt with similar credit rates in the open market.  The subordinated note and deferred payment liabilities were valued based on the interest rate of similar debt in the open market.

Fair value guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The contract for two interest rate swaps entered into effective February 15, 2008, expired on March 31, 2013. The fair value adjustment of the interest rate swap contracts resulted in a gain of $272 for the three month period ended September 30, 2012 and gain of $542 for the six month period ended September 30, 2012. This gain was included in the Company’s earnings for the three and six month periods ended September 30, 2012.

Foreign exchange risk

Foreign currency exchange risk to the Company results primarily from changes in exchange rates between the Company’s reporting currency, the U.S. Dollar, and the Canadian dollar.  The Company is exposed to fluctuations in foreign exchange as a significant portion of revenue and operating expenses are denominated in Canadian dollars.

30

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

21. FINANCIAL INSTRUMENTS (continued)

Interest rate risk

The Company is exposed to fluctuations in interest rates as a result of its banking facilities and senior debt bearing variable interest rates.

In December 2012, the Company entered into two interest rate cap contracts covering 50% of its outstanding term debt at a cap of three month Libor at 2.5% on its US Term Debt borrowings and a cap of three month BA rates at 3.0% on its Canadian Term Debt borrowings. The notional amount on each of these instruments will decrease with each scheduled principal payment. The interest rate cap contracts will terminate on December 1, 2015.

The Company did not designate the two expired swap contracts for hedge accounting treatment and therefore changes in fair value of these contracts were recorded in earnings as follows:

Derivatives not designated as hedging instrument:	Location of gain -Recognized in earnings	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Interest rate swap contracts liability	Other (income) and expenses	$	—	$	(272	)	$	—	$	(542	)

Credit risk

Accounts receivable credit risk is mitigated by the diversification of the Company’s customers among industries and the short shipping season.

Liquidity risk

The ongoing tightened credit in financial markets and continued general economic downturn may adversely affect the ability of the Company’s customers and suppliers to obtain financing for significant operations and purchases and to perform their obligations under agreements with the Company.  The tightening of credit could (i) result in a decrease in, or cancellation of, existing business, (ii) limit new business, (iii) negatively impact the Company’s ability to collect accounts receivable on a timely basis and (iv) affect the eligible receivables that are collateral for the Company’s lines of credit.  The Company makes seasonal net borrowings under its revolving credit facility during the first quarter of each fiscal year to fund working capital needed to commence the sailing season. Such borrowings are then reduced during the second half of each fiscal year.

31

RAND LOGISTICS, INC.

Notes to the Consolidated Financial Statements (Unaudited)

(U.S. Dollars 000’s except for Shares and Per Share data)

22. EARNINGS PER SHARE

The Company had a total of 17,925,129 shares of common stock issued and outstanding as of September 30, 2013, out of an authorized total of 50,000,000 shares. The fully diluted calculation utilizes a total of 20,338,879 shares for the three month period ended September 30, 2013, 20,271,204 for three month period ended September 30, 2012, 20,317,211 shares for the six month period ended September 30, 2013 and 20,282,747 for the six month period ended September 30, 2012. Since the calculation for three and six month periods ended September 30, 2013 and September 30, 2012 are anti-dilutive, the basic and fully diluted weighted average shares outstanding are 17,919,524 and 17,724,389 for the three month periods ended September 30, 2013 and September 30, 2012, respectively, and 17,897,856 and 17,722,242 for six month periods ended September 30, 2013 and September 30, 2012, respectively. The convertible preferred shares convert to an aggregate of 2,419,355 shares of the common stock based on a conversion price of $6.20.

	Three months ended September 30, 2013			Three months ended September 30, 2012			Six months ended September 30, 2013			Six months ended September 30, 2012
Numerator:
Net income before preferred dividends	$	1,215		$	2,882		$	3,793		$	5,977
Preferred stock dividends	(879		)	(782		)	(1,733		)	(1,540		)
Net income applicable to common stockholders	$	336		$	2,100		$	2,060		$	4,437
Denominator:
Weighted average common shares for basic EPS	17,919,524			17,724,389			17,897,856			17,722,242
Effect of dilutive securities:
Average price during period	5.08			7.71			5.34			8.02
Long term incentive stock option plan	479,785			479,785			479,785			479,785
Average exercise price of stock options	5.66			5.66			5.66			5.66
Shares that could be acquired with the proceeds of options	—			352,325			—			338,635
Dilutive shares due to options	—			127,460			—			141,150
Weighted average convertible preferred shares at $6.20	2,419,355			2,419,355			2,419,355			2,419,355
Weighted average common shares for diluted EPS	17,919,524			17,724,389			17,897,856			17,722,242
Basic EPS	$	0.02		$	0.12		$	0.12		$	0.25
Diluted EPS	$	0.02		$	0.12		$	0.12		$	0.25

32

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations

All dollar amounts below $500,000 presented herein are in thousands, values greater than $500,000 are presented in millions except share, per share and per day amounts.

The following Management's Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is written to help the reader understand our company. The MD&A is provided as a supplement to, and should be read in conjunction with, the Consolidated Financial Statements and the accompanying financial statement notes of the Company appearing elsewhere in this Quarterly Report on Form 10-Q for the three and six month periods ended September 30, 2013.

Cautionary Note Regarding Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements, including those relating to our capital needs, business strategy, expectations and intentions. Statements that use the terms “believe”, “anticipate”, “expect”, “plan”, “estimate”, “intend” and similar expressions of a future or forward-looking nature identify forward-looking statements for purposes of the U.S. federal securities laws or otherwise. For these statements and all other forward-looking statements, we claim the protection of the Safe Harbor for Forward-Looking Statements contained in the Private Securities Litigation Reform Act of 1995.

 Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated.  Forward-looking statements reflect our current views with respect to future events and because our business is subject to such risks and uncertainties, actual results, our strategic plan, our financial position, results of operations and cash flows could differ materially from those described in or contemplated by the forward-looking statements contained in this report.

 Important factors that contribute to such risks include, but are not limited to, those factors set forth under “Risk Factors” on our Form 10-K filed with the Securities and Exchange Commission on June 12, 2013 which include the continuing effects of the economic downturn in our markets; the weather conditions on the Great Lakes; and our ability to maintain and replace our vessels as they age. The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with other cautionary statements that are included in this report. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

Overview

Business

Rand (formerly Rand Acquisition Corporation) was incorporated in the State of Delaware in 2004.

On March 3, 2006, we acquired all of the outstanding shares of capital stock of Lower Lakes Towing Ltd. ("Lower Lakes Towing"), a Canadian corporation which, with its subsidiary Lower Lakes Transportation Company ("Lower Lakes Transportation"), provides bulk freight shipping services throughout the Great Lakes region, and at the time of acquisition, operated eight vessels. As part of the acquisition of Lower Lakes, we also acquired Lower Lakes’ affiliate, Grand River Navigation Company, Inc. ("Grand River"). Prior to the acquisition, we did not conduct, or have any investment in, any operating business. Subsequent to the acquisition, we have added ten vessels to our fleet through acquisition transactions and we retired two smaller vessels. In this Quarterly Report on Form 10-Q, unless the context otherwise requires, references to Rand, we, us and the Company include Rand and its direct and indirect subsidiaries, and references to Lower Lakes' business or the business of Lower Lakes mean the combined businesses of Lower Lakes Towing, Lower Lakes Transportation, Grand River and our additional operating subsidiary, Black Creek Shipping Company, Inc. ("Black Creek").

Lower Lakes Ship Repair Company Ltd., a wholly owned subsidiary of Lower Lakes Towing, was incorporated on December 27, 2012 under the laws of Canada. This company provides ship repair services exclusively for the Lower Lakes fleet.

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Our shipping business is operated in Canada by Lower Lakes Towing and in the United States by Lower Lakes Transportation. Lower Lakes Towing was organized in March 1994 under the laws of Canada to provide marine transportation services to dry bulk goods suppliers and purchasers operating in ports on the Great Lakes and has grown from its origin as a small tug and barge operator to a full service shipping company with a fleet of sixteen cargo-carrying vessels. We have grown to become one of the largest bulk shipping companies operating on the Great Lakes and the leading service provider in the River Class market segment, which we define as vessels less than 650 feet in overall length. We transport construction aggregates, salt, iron ore, coal, grain and other dry bulk commodities for customers in the construction, electric utility, integrated steel and food industries.

We believe that Lower Lakes is the only company providing significant domestic port-to-port services to both Canada and the United States in the Great Lakes region. Lower Lakes maintains this operating flexibility by operating both U.S. and Canadian flagged vessels in compliance with the Shipping Act, 1916, and the Merchant Marine Act, 1920, commonly referred to as the Jones Act in the U.S. and the Coasting Trade Act in Canada.

Lower Lakes' fleet consists of five self-unloading bulk carriers and four conventional bulk carriers in Canada and seven self-unloading bulk carriers in the U.S., including one integrated tug and barge unit and three articulated tug and barge units. Lower Lakes Towing owns the nine Canadian vessels. Lower Lakes Transportation time charters the seven U.S. vessels, including the four tug and barge units, from Grand River. With the exception of one barge (which Grand River bareboat charters from an unrelated third party) and two of the articulated tug and barge units (which Grand River bareboat charters from Black Creek), Grand River owns the vessels that it time charters to Lower Lakes Transportation.

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Results of Operations for the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012

Selected Financial Information

(USD in 000's)	Three months ended September 30, 2013		Three months ended September 30, 2012		$ Change			% Change
Revenue:
Freight and related revenue	$	42,955	$	39,040	$	3,915		10.0	%
Fuel and other surcharges	$	7,586	$	11,107	$	(3,521	)	(31.7	)%
Outside voyage charter revenue	$	—	$	424	$	(424	)	(100.0	)%
Total	$	50,541	$	50,571	$	(30	)	(0.1	)%
Expenses:
Outside voyage charter fees	$	—	$	423	$	(423	)	(100.0	)%
Vessel operating expenses	$	31,608	$	31,986	$	(378	)	(1.2	)%
Sailing days:	1,286		1,185		101			8.5	%
Number of vessels operated:	15		15		—			—	%
Per day in whole USD:
Revenue per sailing day:
Freight and related revenue	$	33,402	$	32,945	$	457		1.4	%
Fuel and other surcharges	$	5,899	$	9,373	$	(3,474	)	(37.1	)%
Expenses per sailing day:
Vessel operating expenses	$	24,579	$	26,992	$	(2,413	)	(8.9	)%

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The following table summarizes the changes in the components of our revenue and vessel operating expenses as a result of changes in Sailing Days, which we define as days a vessel is crewed and available for sailing, during the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012:

(USD in 000's)	Sailing Days	Freight and related revenue			Fuel and other surcharges			Outside voyage charter			Total revenue			Vessel operating expenses
Three months ended September 30, 2012	1,185	$	39,040		$	11,107		$	424		$	50,571		$	31,986
Changes in three month period ended September 30, 2013:
Decrease attributable to weaker Canadian dollar		(1,045		)	(204		)	—			(1,249		)	(812		)
Net increase attributable to customer demand and pricing (excluding currency impact)	101	4,960			(3,317		)	—			1,643			434
Changes in outside voyage charter revenue (excluding currency impact)								(424		)	(424		)	—
Sub-total	101	$	3,915		$	(3,521	)	$	(424	)	$	(30	)	$	(378	)
Three months ended September 30, 2013	1,286	$	42,955		$	7,586		$	—		$	50,541		31,608

Total revenue during the three month period ended September 30, 2013 was $50.5 million, a decrease of 0.1%, compared to $50.6 million during the three month period ended September 30, 2012. This decrease was primarily attributable to reduced fuel surcharges and the effect of the weaker Canadian dollar, partially offset by increased tonnage carried and increased prices.

According to the Lake Carriers' Association, during the three month period ended September 30, 2013, U.S.-flagged vessels experienced a 3.9% increase in overall customer shipments for the commodities that we carry on the Great Lakes compared to the three month period ended September 30, 2012. On a total Great Lakes basis, which includes Canadian and U.S. ports, iron ore shipments decreased 4.9%, coal shipments increased 1.4% and aggregates cargos increased a modest 0.4% as compared to the prior comparative period. During the three month period ended September 30, 2013, we mitigated this decline in iron ore shipments by altering our commodity mix, which resulted in a 9.0% increase in our tonnage carried for the three month period ended September 30, 2013.

Freight and other related revenue generated from Company-operated vessels increased $3.9 million or 10.0%, to $43.0 million during the three month period ended September 30, 2013 compared to $39.0 million during the three month period ended September 30, 2012. Excluding the impact of currency changes, freight revenue increased 12.7% during the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012.

The increase in freight and related revenue was attributable to contractual price increases and 101 additional Sailing Days. Additionally, certain customer contract renewals included a reset of the base fuel price to reflect prevailing market conditions for fuel, resulting in an increase in freight revenue and an equivalent reduction in fuel surcharges during the three month period ended September 30, 2013. The changes to these agreements had no impact on our actual fuel expenses and did not change the fuel escalation provisions that are part of all of our contracts. There was no impact to operating income resulting from these changes. Although one of our vessels was in long-term layup status during the three month period ended September 30, 2013, the resultant reduction of Sailing Days attributable to such vessel was offset by the elimination of lost time due to vessel incidents and the addition of our newest vessel that did not sail during the three month period ended September 30, 2012.

We operated fifteen vessels during each of the three month periods ended September 30, 2013 and September 30, 2012. The vessel that began sailing in October 2012 offset our vessel in long-term layup during the 2013 sailing season. Management believes that each of our vessels should achieve a theoretical maximum of 92 Sailing Days in our second fiscal quarter, assuming

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no major repairs, incidents or vessel layups and normal drydocking cycle times performed during the winter lay-up period. The Company’s vessels sailed an average of approximately 86 Sailing Days during the three month period ended September 30, 2013, representing 93.5% of the theoretical maximum, compared to an average of 79 Sailing Days during the three month period ended September 30, 2012, or 85.9% of the theoretical maximum. We also measure Delay Days, which we define as the lost time incurred by our vessels while in operation, and includes delays caused by inclement weather, dock delays, traffic congestion and vessel mechanical issues. We experienced 93 Delay Days during the three month period ended September 30, 2013 compared to 94 Delay Days during the three month period ended September 30, 2012. Such Delay Days represent a Lost Time Factor, calculated as Delay Days as a percentage of Sailing Days, of 7.2% for the three month period ended September 30, 2013 compared to 7.9% for the three month period ended September 30, 2012.

Freight and related revenue per Sailing Day increased $457, or 1.4%, to $33,402 per Sailing Day during the three month period ended September 30, 2013 compared to $32,945 per Sailing Day during the three month period ended September 30, 2012. This revenue increase was somewhat offset by a weaker Canadian dollar and an approximately 10% decrease in coal tonnage and 8% decrease in iron ore tonnage hauled during the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012. Additionally, one of our customers experienced a seismic shift in their salt mine that impacted the tonnage available for carriage. To mitigate these reductions, our available Sailing Days were redeployed to other commodities. This shift in Sailing Days allocated to other commodities and away from iron ore and coal, and a lack of scheduling flexibility due to the weakened economic environment, impacted the efficiencies of our trade patterns during the three month period ended September 30, 2013.

All of our customer contracts have fuel surcharge provisions whereby changes in our fuel costs are passed on to our customers. Such increases and decreases in fuel surcharges impact margin percentages, but do not significantly impact our margin dollars. Fuel and other surcharges decreased $3.5 million, or 31.7%, to $7.6 million during the three month period ended September 30, 2013 compared to $11.1 million during the three month period ended September 30, 2012. This decrease was attributable to reduced fuel prices, a weaker Canadian dollar and the renewal of several customer contracts that reset the base fuel price and reduced the fuel surcharge (which surcharge was added to Freight and other related revenue), slightly offset by an increased number of Sailing Days. Fuel and other surcharges per Sailing Day decreased by $3,474, or 37.1%, to $5,899 per Sailing Day during the three month period ended September 30, 2013 compared to $9,373 per Sailing Day during the three month period ended September 30, 2012.

Vessel operating expenses decreased $378, or 1.2%, to $31.6 million during the three month period ended September 30, 2013 compared to $32.0 million during the three month period ended September 30, 2012. This decrease was primarily due to a weaker Canadian dollar, reduced fuel pricing and reduced expenses related to vessel incident costs, offset by a greater number of Sailing Days attributable to the elimination of lost time due to incidents. Vessel operating expenses per Sailing Day decreased $2,413, or 8.9%, to $24,579 per Sailing Day during the three month period ended September 30, 2013 from $26,992 per Sailing Day during the three month period ended September 30, 2012.

Our general and administrative expenses were $3.2 million during the three month periods ended September 30, 2013 and September 30, 2012. These costs remained stable due to a weaker Canadian dollar offset by additional compensation and benefit costs related in part to our increased shoreside operational support headcount. Our general and administrative expenses represented 7.4%of freight revenues during the three month period ended September 30, 2013 and 8.1% of freight revenues during the three month period ended September 30, 2012.

Depreciation expense increased $0.7 million to $4.3 million during the three month period ended September 30, 2013 compared to $3.6 million during the three month period ended September 30, 2012. This increase was primarily attributable to the articulated tug and barge unit that began sailing in October 2012 and winter 2013 capital expenditures, offset by a weaker Canadian dollar during the three month period ended September 30, 2013.

Amortization of drydock costs decreased $44 to $0.8 million during the three month period ended September 30, 2013 from $0.9 million during the three month period ended September 30, 2012. During the three month period ended September 30, 2013, the Company amortized the deferred drydock costs of thirteen of its sixteen vessels, compared to twelve vessels during the three month period ended September 30, 2012.

As a result of the items described above, during the three month period ended September 30, 2013, the Company’s operating income increased $289 to $10.2 million compared to operating income of $9.9 million during the three month period ended September 30, 2012. Operating income plus depreciation, amortization of drydock costs and amortization of intangibles

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increased 6.0%, or $0.9 million, to $15.6 million during the three month period ended September 30, 2013 from $14.7 million during the three month period ended September 30, 2012.

Interest expense increased $109 to $2.3 million during the three month period ended September 30, 2013 from $2.2 million during the three month period ended September 30, 2012. This slight increase in interest expense was primarily attributable to a slightly higher average debt balance offset by a lower amortization of deferred financing costs, the expiration of interest rate swap contracts on March 31, 2013 and the capitalization of interest associated with the debt incurred to modify our most recently acquired vessel in the three month period ended September 30, 2012.

Our interest rate swap contracts expired on March 31, 2013. During the three month period ended September 30, 2012, we recorded a gain on such contracts of $272.

Our income before income taxes was $7.9 millionduring the three month period ended September 30, 2013 compared to income before income taxes of $4.6 million during the three month period ended September 30, 2012.

Our effective tax rate was 84.5% on pre-tax income during the three month period ended September 30, 2013 compared to 37.5% on pre-tax income during the three month period ended September 30, 2012. The effective tax rate for the three month period ended September 30, 2013 was higher than the statutory tax rate due to the comparative magnitude of the domestic permanent differences, which primarily include imputed interest, partially offset by foreign earnings being subject to a lower statutory tax rate. Although the Company’s full year forecasted income before income taxes for the year ending March 31, 2014 has increased compared to the full year $4.3 million loss before income taxes incurred during the fiscal year ended March 31, 2013, the value of the full year forecasted permanent differences will exceed our forecasted income before income taxes for the fiscal year ending March 31, 2014, substantially increasing our effective tax rate. Additionally, our forecasted full year income before income taxes by country was changed in the three month period ended September 30, 2013 compared to the full year forecast made during the three month period ended June 30, 2013, which change caused the tax rate for the three month period ended September 30, 2013 to exceed the forecasted full year tax rate for the six month period ended September 30, 2013.

Our provision for deferred income tax expense was $6.6 million during the three month period ended September 30, 2013 as compared to a deferred income tax expense of $1.7 million during the three month period ended September 30, 2012. The increase in deferred income tax expense was due to higher net income before income taxes and a higher consolidated tax rate during the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012.

Our net income before preferred stock dividends was $1.2 million during the three month period ended September 30, 2013 compared to $2.9 million during the three month period ended September 30, 2012.

We accrued $0.9 million for dividends on our preferred stock during the three month period ended September 30, 2013 compared to $0.8 million during the three month period ended September 30, 2012. The dividends accrued at a rate of 12.0% during each of the three month periods ended September 30, 2013 and September 30, 2012. The dividend rate increased to a cap of 12.0% effective July 1, 2011.

Our net income applicable to common stockholders was $336 during the three month period ended September 30, 2013 compared to $2.1 million during the three month period ended September 30, 2012.

The Canadian dollar weakened by 4.3% compared to the U.S. dollar during the three month period ended September 30, 2013 compared to the three month period ended September 30, 2012, averaging approximately $0.963USD per CDN during the three month period ended September 30, 2013 compared to approximately $1.006 USD per CDN during the three month period ended September 30, 2012. The Company's balance sheet translation rate decreased from $0.984 USD per CDN at March 31, 2013 to $0.971 USD per CDN at September 30, 2013.

During the three month period ended September 30, 2013, the Company operated an average of six vessels in the US and nine vessels in Canada. The percentage of our total freight and other revenue, fuel and other surcharge revenue, vessel operating expenses, repairs and maintenance costs and combined depreciation and amortization costs approximate the percentage of vessels operated by country. Approximately half of our general and administrative costs are incurred in Canada. Approximately 40% of our interest expense is incurred in Canada, reflecting the approximate percentage of total debt. All of our preferred stock dividends are accrued in the US.

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Results of Operations for the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012

Selected Financial Information

(USD in 000's)	Six months ended September 30, 2013		Six months ended September 30, 2012		Change			% Change
Revenue:
Freight and related revenue	$	82,560	$	75,367	$	7,193		9.5	%
Fuel and other surcharges	$	16,382	$	23,582	$	(7,200	)	(30.5	)%
Outside voyage charter revenue	$	—	$	1,234	$	(1,234	)	(100.0	)%
Total	$	98,942	$	100,183	$	(1,241	)	(1.2	)%
Expenses:
Outside voyage charter fees	$	—	$	1,245	$	(1,245	)	(100.0	)%
Vessel operating expenses	$	64,291	$	65,143	$	(852	)	(1.3	)%
Sailing days:	2,548		2,359		189			8.0	%
Number of vessels operated:	15		15		—			—	%
Per day in whole USD:
Revenue per sailing day:
Freight and related revenue	$	32,402	$	31,949	$	453		1.4	%
Fuel and other surcharges	$	6,429	$	9,997	$	(3,568	)	(35.7	)%
Expenses per sailing day:
Vessel operating expenses	$	25,232	$	27,615	$	(2,383	)	(8.6	)%

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The following table summarizes the changes in the components of our revenue and vessel operating expenses as a result of changes in Sailing Days during the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012:

(USD in 000's)	Sailing Days	Freight and related revenue			Fuel and other surcharges			Outside voyage charter			Total revenue			Vessel operating expenses
Six months ended September 30, 2012	2,359	$	75,367		$	23,582		$	1,234		$	100,183		$	65,143
Changes in six month period ended September 30, 2013:
Decrease attributable to weaker Canadian dollar		(1,339		)	(271		)	—			(1,610		)	(1,060		)
Net increase attributable to customer demand and pricing (excluding currency impact)	189	8,532			(6,929		)	—			1,603			208
Changes in outside voyage charter revenue (excluding currency impact)								(1,234		)	(1,234		)	—
Sub-total	189	$	7,193		$	(7,200	)	$	(1,234	)	$	(1,241	)	$	(852	)
Six months ended September 30, 2013	2,548	$	82,560		$	16,382		$	—		$	98,942		$	64,291

Total revenue during the six month period ended September 30, 2013 was $98.9 million, a decrease of $1.2 million, or 1.2%, compared to $100.2 million during the six month period ended September 30, 2012. This decrease was primarily attributable to reduced fuel surcharges, the effect of the weaker Canadian dollar and eliminated outside voyage charter revenue, partially offset by increased tonnage carried and increased prices.

According to the Lake Carriers' Association, during the six month period ended September 30, 2013, U.S.-flagged vessels experienced a 3.7% increase in overall customer shipments for the commodities that we carry on the Great Lakes compared to the six month period ended September 30, 2012. However, on a total Great Lakes basis, which includes Canadian and U.S. ports, iron ore shipments decreased 6.7%, coal shipments decreased 3.0% and aggregates cargos decreased 2.9% as compared to the six month period ended September 30, 2012. During the six month period ended September 30, 2013, we mitigated this decline by altering our commodity mix, which resulted in an 8.2% increase in our tonnage carried for the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012.

Freight and other related revenue generated from Company-operated vessels increased $7.2 million, or 9.5%, to $82.6 million during the six month period ended September 30, 2013 compared to $75.4 million during the six month period ended September 30, 2012. Excluding the impact of currency changes, freight revenue increased 11.3% during the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012.

The increase in freight and related revenue was attributable to contractual price increases and 189 additional Sailing Days. Additionally, certain customer contract renewals included a reset of the base fuel price to reflect prevailing market conditions for fuel, resulting in an increase in freight revenue and an equivalent reduction in fuel surcharges during the six month period ended September 30, 2013. The changes to these agreements had no impact on our actual fuel expenses and did not change the fuel escalation provisions that are part of all of our contracts. There was no impact to operating income resulting from this change. Although one of our vessels was in long-term layup status during the six month period ended September 30, 2013, the resultant reduction of Sailing Days attributable to such vessel was offset by the elimination of lost time due to vessel incidents and the addition of our newest vessel that did not sail during the six month period ended September 30, 2012.

We operated fifteen vessels during each of the six month periods ended September 30, 2013 and September 30, 2012. The vessel that began sailing in October 2012 offset our vessel in long-term layup. Management believes that each of our vessels

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should achieve a theoretical maximum of 183 Sailing Days in our first two fiscal quarters, assuming no major repairs, incidents or vessel layups and normal drydocking cycle times performed during the winter lay-up period. The Company’s vessels sailed an average of approximately 170 Sailing Days during the six month period ended September 30, 2013, representing 92.8% of the theoretical maximum, compared to an average of 157 Sailing Days during the six month period ended September 30, 2012, or 85.9% of the theoretical maximum. We experienced 222 Delay Days during the six month period ended September 30, 2013 compared to 194 Delay Days during the six month period ended September 30, 2012. Such Delay Days represent a Lost Time Factor of 8.7% for the six month period ended September 30, 2013 compared to 8.2% for the six month period ended September 30, 2012.

Freight and related revenue per Sailing Day increased $453 or 1.4%, to $32,402 per Sailing Day during the six month period ended September 30, 2013 compared to $31,949 per Sailing Day during the six month period ended September 30, 2012. This revenue increase was somewhat offset by a weaker Canadian dollar and an approximately 13% decrease in coal tonnage and 5% decrease in iron ore tonnage hauled during the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012. Our iron ore and coal tonnage decreased which resulted in a decline in the number of days required to move these commodities. To mitigate this reduction and the resultant reduction of salt carried for a customer that experienced a seismic shift at its Cleveland mine, the available Sailing Days were redeployed to the aggregates trade. This shift in Sailing Days allocated to aggregates and away from iron ore and coal, combined with inclement weather conditions that resulted in both the delayed opening of certain of our customers facilities, vessel delays, and a lack of scheduling flexibility due to the weakened economic environment, impacted the efficiencies of our trade patterns during the six month period ended September 30, 2013.

All of our customer contracts have fuel surcharge provisions whereby changes in our fuel costs are passed on to our customers. Such increases and decreases in fuel surcharges impact margin percentages, but do not significantly impact our margin dollars. Fuel and other surcharges decreased $7.2 million, or 30.5%, to $16.4 million during the six month period ended September 30, 2013 compared to $23.6 million during the six month period ended September 30, 2012. This decrease was attributable to reduced fuel prices, a weaker Canadian dollar and the renewal of several customer contracts that reset the base fuel price and reduced the fuel surcharge (which surcharge was added to Freight and other related revenue), slightly offset by an increased number of Sailing Days. Fuel and other surcharges per Sailing Day decreased by $3,568, or 35.7%, to $6,429 per Sailing Day during the six month period ended September 30, 2013 compared to $9,997 per Sailing Day during the six month period ended September 30, 2012.

Vessel operating expenses decreased $0.9 million, or 1.3%, to $64.3 million during the six month period ended September 30, 2013 compared to $65.1 million during the six month period ended September 30, 2012. This decrease was primarily due to a weaker Canadian dollar, reduced fuel pricing and reduced operating expenses related to vessel incident costs, offset by a greater number of Sailing Days attributable to the elimination of lost time due to incidents. Vessel operating expenses per Sailing Day decreased $2,383, or 8.6%, to $25,232 per Sailing Day during the six month period ended September 30, 2013 from $27,615 per Sailing Day during the six month period ended September 30, 2012.

Repairs and maintenance expenses, which primarily consist of expensed winter work and vessel layup and fitout costs, increased to $0.9 million during the six month period ended September 30, 2013 from $0.7 million during the six month period ended September 30, 2012. This increase was primarily attributable to fitting out seven vessels during the six month period ended September 30, 2013 as compared to six vessels during the six month period ended September 30, 2012. The number of vessels we fitout increased due to the delayed opening of certain customer facilities and the shift in commodity mix we experienced during the six month period ended September 30, 2013.

Our general and administrative expenses were $6.1 million during each of the six month periods ended September 30, 2013 and September 30, 2012, due to reduced legal costs and financing fees related to our credit agreements and a weaker Canadian dollar, offset by additional compensation and benefit costs related in part to our increased shoreside operational support headcount. Our general and administrative expenses represented 7.4%of freight revenues during the six month period ended September 30, 2013 and 8.1% of freight revenues during the six month period ended September 30, 2012.

Depreciation expense increased $1.5 million to $8.6 million during the six month period ended September 30, 2013 compared to $7.1 million during the six month period ended September 30, 2012. This increase was primarily attributable to the articulated tug and barge unit that began sailing at the end of the 2012 sailing season and winter 2013 capital expenditures, offset by a weaker Canadian dollar during the six month period ended September 30, 2013.

Amortization of drydock costs decreased $115 to $1.7 million during the six month period ended September 30, 2013 from $1.8 million during the six month period ended September 30, 2012. During the six month period ended September 30,

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2013, the Company amortized the deferred drydock costs of thirteen of its sixteen vessels, compared to twelve vessels during the six month period ended September 30, 2012.

As a result of the items described above, during the six month period ended September 30, 2013, the Company’s operating income decreased $0.8 million to $16.7 million compared to operating income of $17.5 million during the six month period ended September 30, 2012. Operating income plus depreciation, amortization of drydock costs and amortization of intangibles increased 2.1%, or $0.6 million, to $27.6 million during the six month period ended September 30, 2013 from $27.0 million during the six month period ended September 30, 2012.

Interest expense decreased $206 to $4.7 million during the six month period ended September 30, 2013 from $4.9 million during the six month period ended September 30, 2012. This decrease in interest expense was primarily attributable to lower amortization of deferred financing costs, the expiration of interest rate swap contracts on March 31, 2013 and the capitalization of interest during the six month period ended September 30, 2012 associated with the debt incurred to modify our most recent vessel acquisition, partially offset by a slightly higher debt balance.

Our interest rate swap contracts expired on March 31, 2013. During the six month period ended September 30, 2012, we recorded a gain on such contracts of $0.5 million.

Our income before income taxes was $12.0 millionduring the six month period ended September 30, 2013 compared to income before income taxes of $9.8 million during the six month period ended September 30, 2012.

Our effective tax rate was 68.3% on pre-tax income during the six month period ended September 30, 2013 compared to 38.8% on pre-tax income during the six month period ended September 30, 2012. The effective tax rate for the six month period ended September 30, 2013 was higher than the statutory tax rate due to the comparative magnitude of the domestic permanent differences, which primarily include imputed interest, partially offset by foreign earnings being subject to a lower statutory tax rate. Although the Company’s full year forecasted income before income taxes for the year ending March 31, 2014 increased compared to the full year $4.3 million loss before income taxes incurred during the fiscal year ended March 31, 2013, the value of the full year forecasted permanent differences exceeded the forecasted income before income taxes for the fiscal year ending March 31, 2014, substantially increasing our effective tax rate.

Our provision for deferred income tax expense was $8.2 million during the six month period ended September 30, 2013 as compared to a deferred income tax expense of $3.8 million during the six month period ended September 30, 2012. The increase in income tax expense was due to higher net income before income taxes and a higher consolidated tax rate during the six month period ended September 30, 2013 as compared to the six month period ended September 30, 2012. It is anticipated that there will be a recovery of deferred income tax expense during the three month period ending March 31, 2014 to the extent that losses incurred in such fiscal period draw down previously recorded income before income taxes. Due to seasonality of our business, we normally incur a substantial loss before income taxes in our fourth fiscal quarter when our vessels do not sail on the Great Lakes due to winter conditions and we incur significant repair and maintenance expenses.

Our net income before preferred stock dividends was $3.8 million during the six month period ended September 30, 2013 compared to $6.0 million during the six month period ended September 30, 2012.

We accrued $1.7 million for dividends on our preferred stock during the six month period ended September 30, 2013 compared to $1.5 million during the six month period ended September 30, 2012. The dividends accrued at a rate of 12.0% during each of the six month periods ended September 30, 2013 and September 30, 2012. The dividend rate increased to a cap of 12.0% effective July 1, 2011.

Our net income applicable to common stockholders was $2.1 million during the six month period ended September 30, 2013 compared to $4.4 million during the six month period ended September 30, 2012.

The Canadian dollar weakened by 2.8% compared to the U.S. dollar during the six month period ended September 30, 2013 compared to the six month period ended September 30, 2012, averaging approximately $0.970 USD per CDN during the six month period ended September 30, 2013 compared to approximately $0.998 USD per CDN during the six month period ended September 30, 2012. The Company's balance sheet translation rate decreased from $0.984 USD per CDN at March 31, 2013 to $0.971 USD per CDN at September 30, 2013.

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During the six month period ended September 30, 2013, the Company operated an average of six vessels in the US and nine vessels in Canada. The percentage of our total freight and other revenue, fuel and other surcharge revenue, vessel operating expenses, repairs and maintenance costs and combined depreciation and amortization costs approximate the percentage of vessels operated by country. Approximately half of our general and administrative costs are incurred in Canada. Approximately 40% of our interest expense is incurred in Canada, reflecting the approximate percentage of total debt. All of our preferred stock dividends are accrued in the US.

Liquidity and Capital Resources

Our primary sources of liquidity are cash from operations, the proceeds of our credit facility and proceeds from sales of our common stock. Our principal uses of cash are vessel acquisitions, capital expenditures, drydock expenditures, operations and interest and principal payments under our credit facility. Information on our consolidated cash flow is presented in the consolidated statements of cash flows (categorized by operating, investing and financing activities) which is included in our consolidated financial statements for the six month periods ended September 30, 2013 and September 30, 2012. The Company makes seasonal net borrowings under its revolving credit facility during the first quarter of each fiscal year to fund working capital needed to commence the sailing season. Such borrowings are then reduced during the second half of each fiscal year. We believe cash generated from our operations and availability of borrowings under our credit facilities will provide sufficient cash availability to cover our anticipated working capital needs, capital expenditures and debt service requirements for the next twelve months. However, if the Company experiences a material shortfall to its financial forecasts or if the Company's customers materially delay their receivable payments due to further deterioration of economic conditions, the Company may breach its financial covenants and collateral thresholds and be strained for liquidity. The Company has maintained its focus on productivity gains and cost controls, and is closely monitoring customer credit and accounts receivable balances.

Net cash provided by operating activities during the six month period ended September 30, 2013 was $3.9 million, a decrease of $1.0 million from $4.9 million during the six month period ended September 30, 2012. The decrease in cash provided reflected an increase in working capital offset by higher cash earnings compared to the prior year.

Net cash used in investing activities decreased by $21.3 million to net cash used of $5.5 million during the six month period ended September 30, 2013 from net cash used of $26.8 million during the six month period ended September 30, 2012. This decrease was primarily due to payments for upgrades of two acquired vessels during the six month period ended September 30, 2012 compared to payments for regular capital expenditures and drydocking projects during the six month period ended September 30, 2013.

Net cash provided by financing activities decreased $18.3 million to $3.8 million provided during the six month period ended September 30, 2013 compared to $22.1 million provided during the six month period ended September 30, 2012. During the six month period ended September 30, 2013, the Company received proceeds of $17.4 million from the revolving credit facility, made principal payments on its term debt of $1.8 million and repaid $11.6 million of the revolver balance. During the six month period ended September 30, 2012, the Company received proceeds of $13.2 million in term loan proceeds (net of debt financing costs), proceeds of $24.0 million from its revolving credit facility and made principal payments on its term debt of $2.8 million and repaid $12.1 million of the revolver balances.

During the six month period ended September 30, 2013, long-term debt, including the current portion, decreased $2.5 million to $140.9 million from $143.4 million as of March 31, 2013. This decrease included $1.8 million in scheduled principal payments and a $0.7 million decrease due to the weaker Canadian dollar.

On August 30, 2012, Lower Lakes Towing, Lower Lakes Transportation, Grand River, and Black Creek, as borrowers, Rand LL Holdings Corp. ("Rand LL Holdings"), Rand Finance Corp. ("Rand Finance"), Black Creek Shipping Holding Company, Inc. ("Black Creek Holdings"), and Rand, as guarantors, General Electric Capital Corporation, as agent and lender, and certain other lenders, entered into a Third Amended and Restated Credit Agreement (the “Third Amended and Restated Credit Agreement”) which (i) amends and restates the amended and restated credit agreement to which the borrowers were a party, dated as of September 28, 2011 (as the same had been amended from time to time, the “2011 Credit Agreement”), in its entirety, (ii) continues the tranches of loans provided for under the 2011 Credit Agreement, (iii) refinances the indebtedness of Black Creek under its existing credit facility and adds Black Creek as a U.S. Borrower, (iv) provides for certain new loans and (v) provides working capital financing, funds for other general corporate purposes and funds for other permitted purposes.

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The Third Amended and Restated Credit Agreement provides for (i) a revolving credit facility under which Lower Lakes Towing may borrow up to CDN $13.5 million with a seasonal overadvance facility of CDN $12 million, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Transportation, and a swing line facility of CDN $4 million, subject to limitations, (ii) a revolving credit facility including letters of credit under which Lower Lakes Transportation may borrow up to US $13.5 million with a seasonal overadvance facility of US $12 million, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Towing, and a swing line facility of US $0.1 million, subject to limitations, (iii) the modification and continuation of an existing Canadian dollar denominated term loan facility under which Lower Lakes is obligated to the lenders in the amount of CDN $53.0 million as of the date of the Third Amended and Restated Credit Agreement (“CDN Term Loan”), (iv) the modification and continuation of a US dollar denominated term loan facility under which Grand River is obligated to the lenders in the amount of $64.1 million as of the date of the Third Amended and Restated Credit Agreement (“Grand River Term Loan”) and (v) a US dollar denominated term loan facility under which Black Creek is obligated to lenders in the amount of $28.9 million as of the date of the Third Amended and Restated Credit Agreement (“Black Creek Term Loan”).

Under the Third Amended and Restated Credit Agreement, total scheduled term loan principal payments paid on a quarterly basis will be approximately $3.6 million per year (2.5% of the total term debt at inception) in the fiscal year ending March 31, 2014, approximately $5.4 million in the fiscal year ending March 31, 2015, approximately $7.3 million in the fiscal year ending March 31, 2016 and the remaining balance to be repaid in the fiscal year ending March 31, 2017, subject to customary excess cash flow and collateral coverage conditions. Under the prior credit agreements, the Company was obligated to pay approximately $9.2 million per year in scheduled principal payments.

Under the Third Amended and Restated Credit Agreement, the revolving credit facilities and swing line loans expire on August 1, 2016. The outstanding principal amount of the CDN Term Loan borrowings is repayable as follows: (i) quarterly payments of CDN $0.3 million commencing December 1, 2012 and ending September 2014, (ii) quarterly payments of CDN $0.7 million commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the CDN Term Loan upon the CDN Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Grand River Term Loan borrowings is repayable as follows: (i) quarterly payments of US $0.4 million commencing December 1, 2011 and ending on September 1, 2014, (ii) quarterly payments of US $0.8 million commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Grand River Term Loan upon the Grand River Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Black Creek Term Loan borrowings is repayable as follows: (i) quarterly payments of US $0.2 million commencing quarterly December 1, 2011 and ending September 1, 2014, (ii) quarterly payments of US $0.4 million commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Black Creek Term Loan upon the Black Creek Term Loan's maturity on August 1, 2016.

Borrowings under the Canadian revolving credit facility, Canadian swing line facility and the CDN Term Loan bear an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum or (ii) the BA Rate (as defined in the Third Amended and Restated Credit Agreement) plus 4.75% per annum. Borrowings under the US revolving credit facility, US swing line facility and the Grand River Term Loan and Black Creek Term Loan bear interest, at the borrowers' option, equal to (i) LIBOR (as defined in the Third Amended and Restated Credit Agreement) plus 4.75% per annum, or (ii) the US Base Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum.

Obligations under the Third Amended and Restated Credit Agreement are secured by (i) a first priority lien and security interest on all of the borrowers' and guarantors' assets, tangible or intangible, real, personal or mixed, existing and newly acquired, (ii) a pledge by Rand LL Holdings of all of the outstanding capital stock of the borrowers other than Black Creek; (iii) a pledge by Black Creek Holdings of all of the outstanding capital stock of Black Creek; and (iv) a pledge by Rand of all of the outstanding capital stock of Rand LL Holdings, Rand Finance and Black Creek Holdings. The indebtedness of each borrower under the Third Amended and Restated Credit Agreement is unconditionally guarantied by each other borrower and by the guarantors, and such guaranty is secured by a lien on substantially all of the assets of each borrower and each guarantor.

Under the Third Amended and Restated Credit Agreement, the borrowers are required to make mandatory prepayments of principal on term loan borrowings (i) if the outstanding balance of the term loans plus the outstanding balance of the seasonal facilities exceeds the sum of 75% of the fair market value of the vessels owned by the borrowers, less the amount of outstanding liens against the vessels with priority over the lenders' liens, in an amount equal to such excess, (ii) in the event of certain dispositions of assets and insurance proceeds (all subject to certain exceptions), in an amount equal to 100% of the net proceeds received by the borrowers therefrom, and (iii) in an amount equal to 100% of the net proceeds to a borrower from any issuance of a borrower's debt or equity securities.

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The Third Amended and Restated Credit Agreement contains certain covenants, including those limiting the guarantors', the borrowers', and their subsidiaries' ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Third Amended and Restated Credit Agreement requires the borrowers to maintain certain financial ratios. Failure of the borrowers or the guarantors to comply with any of these covenants or financial ratios could result in the loans under the Third Amended and Restated Credit Agreement being accelerated.

On March 29, 2013, Lower Lakes Towing, Lower Lakes Transportation, Grand River, and Black Creek, as borrowers, Rand LL Holdings, Rand Finance, Black Creek Holdings and Rand, as guarantors, General Electric Capital Corporation, as agent and Lender, and certain other lenders, entered into a First Amendment (the “First Amendment”) to the Third Amended and Restated Credit Agreement. The First Amendment modified the Credit Agreement's Minimum Fixed Charge Coverage Ratio, Minimum EBITDA, Maximum Senior Funded Debt to EBITDA Ratio and Maximum Capital Expenditures covenants and the definitions of EBITDA and Fixed Charge Coverage Ratio.

As of September 30, 2013, the Company was in compliance with covenants under the Third Amended and Restated Credit Agreement, as amended.

In connection with the execution of the Third Amended and Restated Credit Agreement, on August 30, 2012, Black Creek and Black Creek Holdings terminated their Credit Agreement (the “Black Creek Credit Agreement”) with General Electric Capital Corporation, as agent and lender, and certain other lenders, dated as of February 11, 2011, as amended. All outstanding amounts due under the Black Creek Credit Agreement were repaid in connection with the refinancing of Black Creek's indebtedness under the Third Amended and Restated Credit Agreement, as more fully described above.

Preferred Stock and Preferred Stock Dividends

The Company has accrued, but not paid, its preferred stock dividends since January 1, 2007. The shares of the series A convertible preferred stock rank senior to the Company's common stock with respect to liquidation and dividends; are entitled to receive a cash dividend at the annual rate of 7.75% (based on the $50 per share issue price), payable quarterly (subject to increases of 0.5% for each six month period in respect of which the dividend is not paid in cash, up to a maximum of 12%, subject to reversion to 7.75% upon payment of all accrued and unpaid dividends); are convertible into shares of the Company's common stock at any time at the option of the series A preferred stockholder at a conversion price of $6.20 per share (based on the $50 per share issue price and subject to adjustment) or 8.065 shares of common stock for each Series A Preferred Share (subject to adjustment); are convertible into shares of the Company's common stock (based on a conversion price of $6.20 per share, subject to adjustment) at the option of the Company if, after the third anniversary of our acquisition of Lower Lakes, the trading price of the Company's common stock for 20 trading days within any 30 trading day period equals or exceeds $8.50 per share (subject to adjustment); may be redeemed by the Company in connection with certain change of control or acquisition transactions; will vote on an as-converted basis with the Company's common stock; and have a separate vote over certain material transactions or changes involving the Company. The accrued dividend payable at September 30, 2013 was $15.2 million, compared to $13.5 million at March 31, 2013. As of September 30, 2013 and September 30, 2012, the effective rate of preferred dividends was 12.0%. The dividend rate increased to a cap of 12.0% effective July 1, 2011 until such time as the accrued dividends are paid in cash. The Company is limited in the payment of preferred stock dividends by the fixed charge coverage ratio covenant in the Company's Third Amended and Restated Credit Agreement. Under the terms of the preferred stock, upon the conversion of the preferred stock to common stock, a subordinated promissory note will be issued whereby the cash dividends will accrue at the rates set for the preferred stock and the note must be paid at the earlier of the second anniversary of the conversion or seven years from the initial issuance date of the preferred stock.

Investments in Capital Expenditures and Drydockings

We incurred $2.5 million in paid and unpaid capital expenditures and drydock expenses during the six month period ended September 30, 2013, including $1.9 million relating to carryover from the 2013 winter season, compared to $24.0 million, including costs related to commencing modifications of the barge we acquired in December, 2011 as well as a carryover of $7.5 million from the 2012 winter season, during the six month period ended September 30, 2012.

Contractual Commitments

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A table of our contractual obligations as of March 31, 2013 was included in Item 7, “Management's Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. There have been no significant changes to our contractual obligations during the six month period ended September 30, 2013.

Foreign Exchange Rate Risk

We have foreign currency exposure related to the currency related translation of various financial instruments denominated in the Canadian dollar (fair value risk) and operating cash flows denominated in the Canadian dollar (cash flow risk). These exposures are associated with period to period changes in the exchange rate between the U.S. dollar and the Canadian dollar. At September 30, 2013, our liability for financial instruments with exposure to foreign currency risk was approximately CDN $51.7 million of term borrowings and CDN $6.5 million of revolving borrowings. Although we have tried to match our indebtedness and cash flows from earnings by country, a sudden increase in the Canadian dollar exchange rates could increase the indebtedness converted to US dollars before operating cash flows can make up for such a currency conversion change.

From a cash flow perspective, our operations are insulated against changes in currency rates as operations in Canada and the United States have revenues and expenditures denominated in local currencies and our operations are cash flow positive. However, as stated above, a significant portion of our financial liabilities are denominated in Canadian dollars, exposing us to currency risks related to principal payments and interest payments on such financial liability instruments.

Interest Rate Risk

We are exposed to changes in interest rates associated with our banking facilities and senior debt bearing variable interest rates under our Third Amended and Restated Credit Agreement, which carries interest rates which vary with Canadian Prime Rates and B.A. Rates for Canadian borrowings, and US Prime Rates and Libor Rates on US borrowings.

In December 2012, the Company entered into two interest rate cap contracts through December 1, 2015 covering 50% of its outstanding term debt at a cap of three month Libor at 2.5% on 50% of its US Term Debt borrowings and three month BA rates at 3.0% on 50% of its Canadian Term Debt borrowings. The notional amount on each of these instruments will decrease with each scheduled principal payment.

Off-Balance Sheet Arrangements

There are no off-balance sheet arrangements.

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Lack of Historical Operating Data for Acquired Vessels

From time to time, as opportunities arise and depending on the availability of financing, we may acquire additional secondhand drybulk carriers.

Consistent with shipping industry practice, other than inspection of the physical condition of the vessels and examinations of classification society records, there is typically no historical financial due diligence process conducted when we acquire vessels. Accordingly, in such circumstances, we do not obtain the historical operating data for the vessels from the sellers because that information is not material to our decision to make vessel acquisitions, nor do we believe it would be helpful to potential investors in our stock in assessing our business or profitability.

Consistent with shipping industry practice, we generally treat the acquisition of a vessel as the acquisition of an asset rather than a business. In cases where a vessel services a contract of affreightment with a third party customer and the buyer desires to acquire such contract, the seller generally cannot transfer the contract to the buyer without the customer's consent. The purchase of a vessel itself typically does not transfer the contracts of affreightment serviced by such vessel because such contracts are separate service agreements between the vessel owner and its customers.

Where we identify any intangible assets or liabilities associated with the acquisition of a vessel, we allocate the purchase price of acquired tangible and intangible assets based on their relative fair values.

When we purchase a vessel and assume or renegotiate contracts of affreightment associated with the vessel, we must take the following steps before the vessel will be ready to commence operations:

• obtain the customer's consent to us as the new owner if applicable; arrange for a new crew for the vessel;

• replace all hired equipment on board, such as gas cylinders and communication equipment;

• negotiate and enter into new insurance contracts for the vessel through our own insurance brokers; and

• implement a new planned maintenance program for the vessel.

The following discussion is intended to provide an understanding of how acquisitions of vessels affect our business and results of operations.

Our business is comprised of the following main elements:

• employment and operation of our drybulk vessels;

• scheduling our vessels to satisfy customer's contracts of affreightment; and

• management of the financial, general and administrative elements involved in the conduct of our business and ownership of our drybulk vessels.

The employment and operation of our vessels requires the following main components:

• vessel maintenance and repair;

• crew selection and training;

• vessel spares and stores supply;

• planning and undergoing drydocking, special surveys and other major repairs;

• organizing and undergoing regular classification society surveys;

• contingency response planning;

• onboard safety procedures auditing;

• accounting;

• vessel insurance arrangement;

• vessel scheduling;

• vessel security training and security response plans (ISPS);

• obtain ISM certification and audit for each vessel within six months of taking over a vessel;

• vessel hire management;

• vessel surveying; and

• vessel performance monitoring.

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The management of financial, general and administrative elements involved in the conduct of our business and ownership of our vessels requires the following main components:

• management of our financial resources, including banking relationships (e.g., administration of bank loans);

• management of our accounting system and records and financial reporting;

• administration of the legal and regulatory requirements affecting our business and assets; and

• management of the relationships with our service providers and customers.

The principal factors that affect our profitability, cash flows and stockholders' return on investment include:

• rates of contracts of affreightment and charterhire;

• scheduling to match vessels with customer requirements, including dock limitation, vessel trade patterns and backhaul opportunities;

• weather conditions;

• vessel incidents;

• levels of vessel operating expenses;

• depreciation and amortization expenses;

• financing costs; and

• fluctuations in foreign exchange rates.

Critical accounting policies

Rand's significant accounting policies are presented in Note 2 to its unaudited consolidated financial statements, and the following summaries should be read in conjunction with the financial statements and the related notes included in this quarterly report on Form 10-Q. While all accounting policies affect the financial statements, certain policies may be viewed as critical.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the application of certain accounting policies, many of which require the Company to make estimates and assumptions about future events and their impact on amounts reported in the financial statements and related notes. Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the financial statements.

Revenue and operating expenses recognition

The Company generates revenues from freight billings under contracts of affreightment (voyage charters) generally on a rate per ton basis based on origin-destination and cargo carried. Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period when the following conditions are met: the Company has a signed contract of affreightment, the contract price is fixed or determinable and collection is reasonably assured. Included in freight billings are other fees such as fuel surcharges and other freight surcharges, which represent pass-through charges to customers for toll fees, lockage fees and ice breaking fees paid to other parties. Fuel surcharges are recognized ratably over the duration of the voyage, while freight surcharges are recognized when the associated costs are incurred. Freight surcharges are less than 5% of total revenue.

Marine operating expenses such as crewing costs, fuel, tugs and insurance are recognized as incurred or consumed and thereby are recognized ratably in each reporting period. Repairs and maintenance and certain other insignificant costs are recognized as incurred.

The Company subcontracts excess customer demand to other freight providers. Service to customers under such arrangements is transparent to the customer and no additional services are provided to customers. Consequently, revenues recognized for customers serviced by freight subcontractors are recognized on the same basis as described above. Costs for subcontracted freight providers, presented as “outside voyage charter fees” in the consolidated statements of operations, are recognized as incurred and therefore are recognized ratably over the voyage.

The Company accounts for sales taxes imposed on its services on a net basis in the consolidated statements of operations. In addition, all revenues are presented on a gross basis.

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Vessel acquisitions

Vessels are stated at cost, which consists of the purchase price and any material expenses incurred upon acquisition, such as initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for its initial voyage. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earnings capacity or improve the efficiency or safety of the vessels. Significant financing costs incurred during the construction period of the vessels are also capitalized and included in the vessels' cost. Otherwise these amounts are charged to expense as incurred.

Intangible assets and goodwill

Intangible assets consist primarily of goodwill, financing costs, trademarks, trade names and customer relationships and contracts. Intangible Assets are amortized as follows:

Trademarks and trade names         10 years straight-line

Customer relationships and contracts     15 years straight-line

Deferred financing costs are amortized on a straight-line basis over the term of the related debt, which approximates the effective interest method.

Impairment of fixed assets

Fixed assets (e.g. property and equipment) and finite-lived intangible assets (e.g. customer lists) are tested for impairment upon the occurrence of a triggering event that indicates the carrying value of such an asset or asset groups e.g. tugs and barges, might be no longer recoverable. Examples of such triggering events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset(s), a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business.

Once a triggering event has occurred, the recoverability test employed is based on whether the intent is to hold the asset(s) for continued use or to hold the asset(s) for sale. If the intent is to hold the asset(s) for continued use, the recoverability test involves a comparison of undiscounted cash flows excluding interest expense, against the carrying value of the asset(s) as an initial test. If the carrying value of such asset(s) exceeds the undiscounted cash flow, the asset(s) would be deemed to be impaired. Impairment would then be measured as the difference between the fair value of the fixed or amortizing intangible asset and the carrying value of such asset(s). The Company generally determines fair value by using the discounted cash flow method. If the intent is to hold the asset(s) for sale and certain other criteria are met (i.e., the asset(s) can be disposed of currently, appropriate levels of authority have approved the sale and there is an actively pursuing buyer), the impairment test is a comparison of the asset's carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset's fair value less costs to sell, an impairment loss is recognized for the difference. The Company has determined that there were no adverse changes in our markets or other triggering events that could affect the valuation of our assets during the six month period ended September 30, 2013.

Impairment of goodwill

The Company annually reviews the carrying value of goodwill to determine whether impairment may exist. In accordance with Accounting Standards Codification (“ASC”) 350 “Intangibles-Goodwill and Other” and Accounting Standards Update (“ASU”) 2011-08 Intangibles—Goodwill and Other (Topic 350) - Testing Goodwill for Impairment requires that goodwill and certain intangible assets be assessed annually for impairment using fair value measurement techniques. Specifically, goodwill impairment is determined using a three-step process. The first step of the goodwill impairment test is to perform a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. The second step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The estimates of fair value of the Company’s two reporting units, which are the Company’s Canadian and US operations (excluding the parent), are determined using various valuation techniques with the primary techniques being a discounted cash flow analysis

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and peer analysis. A discounted cash flow analysis requires various judgmental assumptions, including assumptions about future cash flows, growth rates, and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s forecast and long-term estimates. Discount rate assumptions are based on an assessment of the risk inherent in the respective reporting units. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The third step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit.  As of March 31, 2013, the Company conducted the qualitative assessment and determined that the fair value of its two reporting units exceeded their carrying amounts and the remaining two-step impairment testing was therefore not necessary.  The Company has determined that there were no adverse changes in our markets or other triggering events that indicated that it is more likely than not that the fair value of our reporting units is less than the carrying value of our reporting units during the six month period ended September 30, 2013.

Income taxes

The Company accounts for income taxes in accordance with ASC 740 “Income Taxes”, which requires the determination of deferred tax assets and liabilities based on the differences between the financial statement and income tax bases of tax assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse. A valuation allowance is recognized, if necessary, to measure tax benefits to the extent that, based on available evidence, it is more likely than not that they will be realized. The Company adopted accounting guidance surrounding the accounting for uncertainty in income taxes on January 1, 2007, which had no impact on the company's consolidated financial statements because management concluded that the tax benefits related to the Company's uncertain tax positions can be fully recognized. The Company classifies interest expense related to income tax liabilities, when applicable, as part of the interest expense in its consolidated statements of operations rather than income tax expense. To date, the Company has not incurred material interest expenses or penalties relating to assessed taxation amounts. There have been no recent examinations by the U.S. taxing authorities. The Company was examined by the Canadian taxing authority for the tax years 2009 and 2010 and such examination is now complete. This audit did not result in any material adjustments for such periods. The Company's primary U.S. state income tax jurisdictions are Illinois, Indiana, Michigan, Minnesota, Ohio and New York and its only international jurisdictions are Canada and its province of Ontario. The following table summarizes the open fiscal tax years for each major jurisdiction:

Jurisdiction	Open Tax Years
Federal (USA)	2009 - 2013
Various states	2009 - 2013
Federal (Canada)	2008 - 2013
Ontario	2008 - 2013

Stock-based compensation

The Company recognizes compensation expense for all newly granted awards and awards modified, repurchased or

cancelled based on fair value at the date of grant.

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Recently Issued Pronouncements

Disclosures about offsetting assets and liabilities

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about offsetting assets and liabilities" ("ASU 2011-11"). ASU 2011-11 requires entities to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position. The amendments require enhanced disclosure by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company adopted ASU 2010-11 as of April 1, 2013. Such adoption had no impact on the Company's consolidated financial statements.

Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the amendments in ASU 2013-05 resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes referred to as step acquisitions) involving a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of ASU 2013-05 to have a material effect on the Company's consolidated financial statements.

Presentation of Unrecognized Tax Benefits

In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss ("NOL") Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). The provisions of the rule require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for an NOL carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new financial statement presentation provisions relating to this update are prospective and effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company does not anticipate a material impact to the consolidated financial statements related to this guidance.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

There have been no material changes to the market risk disclosures set forth in Item 7A in our Annual Report on Form 10-K for the fiscal year ended March 31, 2013.

51

Item 4. Controls and Procedures

Disclosure Controls and Procedures.

Our senior management is responsible for establishing and maintaining disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d - 15(e) under the Exchange Act), designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures.

We have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, with the participation of our Principal Executive Officer and Chief Financial Officer, as well as other members of our management. Based on this evaluation, our Principal Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2013.

Changes in Internal Control Over Financial Reporting

No change occurred in our internal controls concerning financial reporting during the three month period ended September 30, 2013 that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

52

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

The nature of our business exposes us to the potential for legal proceedings related to labor and employment, personal injury, property damage, and environmental matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information, including our assessment of the merits of each particular claim, as well as our current reserves and insurance coverage, we do not expect that any known legal proceeding will in the foreseeable future have a material adverse impact on our financial condition or the results of our operations.

Item 1A. Risk Factors.

There has been no material change to our Risk Factors from those presented in our Form 10-K for the fiscal year ended March 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information

None.

53

Item 6. Exhibits.

(a) Exhibits

31.1	Chief Executive Officer's Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer's Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer's Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer's Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

54

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		RAND LOGISTICS, INC.
Date:	November 6, 2013	/s/ Laurence S. Levy
		Laurence S. Levy
		Executive Chairman
		(Principal Executive Officer)
Date:	November 6, 2013	/s/ Joseph W. McHugh, Jr.
		Joseph W. McHugh, Jr.
		Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

55

Exhibit Index

31.1	Chief Executive Officer's Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Chief Financial Officer's Certificate, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Chief Executive Officer's Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Chief Financial Officer's Certificate, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

56

EX-31.1

Exhibit 31.1

CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATIONS

I, Laurence S. Levy, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Rand Logistics, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 6, 2013	/s/ Laurence S. Levy
	Laurence S. Levy
	Executive Chairman (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

PURSUANT TO RULE 13a-14 AND 15d-14

UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

CERTIFICATIONS

I, Joseph W. McHugh, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Rand Logistics, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 6, 2013	/s/ Joseph W. McHugh, Jr.
	Joseph W. McHugh, Jr.
	Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report (the "Report") of Rand Logistics, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2013 with the Securities and Exchange Commission, the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2013	/s/ Laurence S. Levy
	Laurence S. Levy
	Executive Chairman (Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the filing of the Quarterly Report (the "Report") of Rand Logistics, Inc. (the "Company") on Form 10-Q for the period ended September 30, 2013 with the Securities and Exchange Commission, the undersigned, in the capacity and on the date indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 6, 2013	/s/ Joseph W. McHugh, Jr.
	Joseph W. McHugh, Jr.
	Vice President and Chief Financial Officer

XML

INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

INTANGIBLE ASSETS AND GOODWILL

Intangibles are comprised of the following:

	September 30, 2013		March 31, 2013
Intangible assets:
Deferred financing costs	$	2,119	$	2,120
Trademarks and trade names	1,000		1,010
Customer relationships and contracts	17,748		17,926
Total identifiable intangibles	$	20,867	$	21,056
Accumulated amortization:
Deferred financing costs	$	579	$	309
Trademarks and trade names	758		715
Customer relationships and contracts	7,934		7,420
Total accumulated amortization	9,271		8,444
Net intangible assets	$	11,596	$	12,612
Goodwill	$	10,193	$	10,193

Intangible asset amortization over the next five years is estimated as follows:

Twelve month period ending:

September 30, 2014	$	1,824
September 30, 2015	1,824
September 30, 2016	1,684
September 30, 2017	1,183
September 30, 2018	1,183
	$	7,698

XML

INTANGIBLE ASSETS AND GOODWILL (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	$ 20,867	$ 21,056
Accumulated amortization	9,271	8,444
Intangible assets	11,596	12,612
Goodwill	10,193	10,193
Twelve month period ending:
September 30, 2014	1,824
September 30, 2015	1,824
September 30, 2016	1,684
September 30, 2017	1,183
September 30, 2018	1,183
Total	7,698
Deferred financing costs [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	2,119	2,120
Accumulated amortization	579	309
Trademarks and trade names [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	1,000	1,010
Accumulated amortization	758	715
Customer relationships and contracts [Member]
Finite-Lived Intangible Assets, Net [Abstract]
Intangible assets, gross	17,748	17,926
Accumulated amortization	$ 7,934	$ 7,420

XML

Consolidated Statements of Operations (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
REVENUE
Freight and related revenue	$ 42,955	$ 39,040	$ 82,560	$ 75,367
Fuel and other surcharges	7,586	11,107	16,382	23,582
Outside voyage charter revenue	0	424	0	1,234
TOTAL REVENUE	50,541	50,571	98,942	100,183
EXPENSES
Outside voyage charter fees (Note 18)	0	423	0	1,245
Vessel operating expenses	31,608	31,986	64,291	65,143
Repairs and maintenance	118	270	935	657
General and administrative	3,195	3,175	6,076	6,145
Depreciation	4,275	3,623	8,580	7,111
Amortization of drydock costs	829	873	1,667	1,752
Amortization of intangibles	319	328	641	654
Loss (gain) on foreign exchange	(3)	(18)	60	(14)
TOTAL EXPENSES	40,341	40,660	82,250	82,693
OPERATING INCOME	10,200	9,911	16,692	17,490
OTHER (INCOME) AND EXPENSES
Interest expense (Note 19)	2,345	2,236	4,734	4,940
Interest income	(1)	(2)	(3)	(6)
Gain on interest rate swap contracts (Note 21)	0	(272)	0	(542)
Loss on extinguishment of debt (Note 14)	0	3,339	0	3,339
TOTAL OTHER (INCOME) AND EXPENSES	2,344	5,301	4,731	7,731
(LOSS) INCOME BEFORE INCOME TAXES	7,856	4,610	11,961	9,759
(RECOVERY) PROVISION FOR INCOME TAXES (Note 6)
Current	0	0	0	0
Deferred	6,641	1,728	8,168	3,782
TOTAL PROVISION FOR INCOME TAXES	6,641	1,728	8,168	3,782
NET (LOSS) INCOME BEFORE PREFERRED STOCK DIVIDENDS	1,215	2,882	3,793	5,977
PREFERRED STOCK DIVIDENDS	879	782	1,733	1,540
NET (LOSS) INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 336	$ 2,100	$ 2,060	$ 4,437
Net (loss) income per share basic and diluted (Note 22) (in dollars per share)	$ 0.02	$ 0.12	$ 0.12	$ 0.25
Weighted average shares basic and diluted (in shares)	17,919,524	17,724,389	17,897,856	17,722,242

XML

RECENTLY ISSUED PRONOUNCEMENTS

6 Months Ended

Sep. 30, 2013

Accounting Changes and Error Corrections [Abstract]

RECENTLY ISSUED PRONOUNCEMENTS

RECENTLY ISSUED PRONOUNCEMENTS

Disclosures about offsetting assets and liabilities

In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about offsetting assets and liabilities" ("ASU 2011-11"). ASU 2011-11 requires entities to disclose information about offsetting and related arrangements to enable users of financial statements to understand the effect of those arrangements on an entity's financial position. The amendments require enhanced disclosure by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company adopted ASU 2010-11 as of April 1, 2013. Such adoption had no impact on the Company's consolidated financial statements.

3.    RECENTLY ISSUED PRONOUNCEMENTS (continued)

Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity

In March 2013, the FASB issued ASU 2013-05 Topic 830 - Foreign Currency Matters (“ASU 2013-05”). ASU 2013-05 resolves the diversity in practice about whether Subtopic 810-10, Consolidation-Overall, or Subtopic 830-30, ASU 2013-05 applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the amendments in ASU 2013-05 resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes referred to as step acquisitions) involving a foreign entity. The amendments in ASU 2013-05 are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The Company does not expect the adoption of ASU 2013-05 to have a material effect on the Company's consolidated financial statements.

Presentation of Unrecognized Tax Benefits

In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss ("NOL") Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). The provisions of the rule require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for an NOL carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The new financial statement presentation provisions relating to this update are prospective and effective for interim and annual periods beginning after December 15, 2013, with early adoption permitted. The Company does not anticipate a material impact to the consolidated financial statements related to this guidance.

XML

STOCKHOLDERS' EQUITY

6 Months Ended

Sep. 30, 2013

Stockholders' Equity Note [Abstract]

STOCKHOLDERS' EQUITY

STOCKHOLDERS’ EQUITY

On September 21, 2011, the Company completed a public underwritten offering of 2,800,000 shares of the Company’s common stock for $6.00 per share.  The Company’s proceeds from the offering, net of underwriter’s commissions and expenses, were $15,525.

On February 11, 2011, in connection with the transactions contemplated by the Asset Purchase Agreement with the Sellers discussed in Note 11, the Company issued 1,305,963 shares of the Company’s common stock to Buckeye. Such shares were valued at the average of high and low price on that day of $5.175.

The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences that may be determined from time to time by the Board of Directors. The shares of the Company’s series A convertible preferred stock: rank senior to the Company’s common stock with respect to liquidation and dividends; are entitled to receive a cash dividend at the annual rate of 7.75% (based on the $50 per share issue price) payable quarterly (subject to increases of 0.5% for each six month period in respect of which the dividend is not timely paid, up to a maximum of 12%, subject to reversion to 7.75% upon payment of all accrued and unpaid dividends); are convertible into shares of the Company’s common stock at any time at the option of the series A preferred stockholder at a conversion price of $6.20 per share (based on the $50 per share issue price and subject to adjustment) or 8.065 shares of common stock for each Series A Preferred Share (subject to adjustment); are convertible into shares of the Company’s common stock (based on a conversion price of $6.20 per share, subject to adjustment) at the option of the Company if, after the third anniversary of the acquisition, the trading price of the Company’s common stock for 20 trading days within any 30 trading day period equals or exceeds $8.50 per share (subject to adjustment); may be redeemed by the Company in connection with certain change of control or acquisition transactions; will vote on an as-converted basis with the Company’s common stock; and have a separate vote over certain material transactions or changes involving the Company.

The accrued preferred stock dividends payable at September 30, 2013 were $15,189 and at March 31, 2013 were $13,456. As of September 30, 2013, and as of March 31, 2013, the effective rate of preferred dividends was 12% (maximum). The Company is limited in the payment of preferred dividends by the fixed charge coverage ratio covenant in the Third Amended and Restated Credit Agreement.

17.    STOCKHOLDERS’ EQUITY (continued)

On October 13, 2009, the Company awarded 39,660 shares at the average of high and low share price on that day of $3.17 to a key executive in connection with an Employment Agreement. 20% of such shares vest on March 31^st of each of the five succeeding anniversaries beginning March 31, 2010. The Company recorded expense related to such award of $7 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $13 for each of the six month periods ended September 30, 2013 and September 30, 2012 related to such award.

On February 24, 2010 the Company issued 76,691 shares to two key executives pursuant to Restricted Share Award Agreements.  Such shares were valued at the average of high and low share price on that day of $4.34. The Company recorded expense of $Nil related to such awards for the three month period ended September 30, 2013, $28 for the three month period ended September 30, 2012, $Nil for the six month period ended September 30, 2013 and $56 for the six month period ended September 30, 2012. Such shares vested over three years in equal installments on each of the anniversary dates in 2011, 2012 and 2013.

On April 5, 2010 the Company issued an aggregate of 37,133 shares to four key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.32. The Company recorded expense of $Nil related to such awards for the three month period ended September 30, 2013, $17 for the three month period ended September 30, 2012, $Nil for the six month period ended September 30, 2013 and $33 for the six month period ended September 30, 2012. The April 5, 2010 grants vested over three years in equal installments on each of such awards' anniversary dates in 2011, 2012 and 2013.

On April 8, 2011, the Company issued 86,217 shares to six key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $7.94. The Company recorded expense related to such awards of $56 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $113 for each of the six month periods ended September 30, 2013 and September 30, 2012. The April 8, 2011 grants vest over three years in equal installments on each of such awards' anniversary dates in 2012, 2013 and 2014.

On April 5, 2012, the Company issued 45,754 shares to two key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $8.68. The Company recorded expense related to such awards of $33 for each of the three month periods ended September 30, 2013 and September 30, 2012 and $66 for each of the six month periods ended September 30, 2013 and September 30, 2012. The April 5, 2012 grants vest over three years in equal installments on each of such awards' anniversary dates in 2013, 2014 and 2015.

On February 22, 2013, the Company issued 32,387 shares to four key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.96. The Company recorded expense related to such awards of $25 for the three month period ended September 30, 2013 and $49 for the six month period ended September 30, 2013. The February 22, 2013 grants vest over two years in equal installments on each of such awards' anniversary dates in 2014 and 2015.

On June 5, 2013, the Company issued 54,337 shares to six key executives pursuant to Restricted Share Award Agreements. Such shares were valued at the average of high and low share price on that day of $5.55. The Company recorded expense related to such awards of $25 for the three month period ended September 30, 2013 and $33 for the six month period ended September 30, 2013. The June 5, 2013 grants vest over three years in equal installments on each of such awards' anniversary dates in 2014, 2015 and 2016.

Since January 2007, share-based compensation has been granted to management and directors from time to time.  The Company had no surviving, outstanding share-based compensation agreements with employees or directors prior to that date except as described above.  The Company has reserved 2,500,000 shares for issuance under the Company’s 2007 Long Term Incentive Plan (the “LTIP”) to employees, officers, directors and consultants.  At September 30, 2013, a total of 597,796 shares (662,659 shares at March 31, 2013) were available under the LTIP for future awards.

17.    STOCKHOLDERS’ EQUITY (continued)

For all share-based compensation, as employees and directors render service over the vesting periods, expense is recorded in general and administrative expenses. Generally this expense is for the straight-line amortization of the grant date fair market value adjusted for expected forfeitures. Grant date fair market value for all non-option share-based compensation is the average of the high and low trading prices on the date of grant.

The general characteristics of issued types of share-based awards granted under the LTIP through September 30, 2013 are as follows:

Stock Awards - All of the shares issued to non-employee outside directors vest immediately.  The first award to non-employee outside directors in the amount of 12,909 shares was made on February 13, 2008 for services through March 31, 2008.  During the fiscal year ended March 31, 2009, the Company awarded 15,948 shares for services from April 1, 2008 through December 31, 2008. The Company awarded 37,144 shares during the fiscal year ended March 31, 2010 for services from January 1, 2009 through March 31, 2010. During the fiscal year ended March 31, 2011, the Company awarded 14,007 shares for services provided from April 1, 2010 through March 31, 2011. During the fiscal year ended March 31, 2012, the Company awarded 10,722 shares for services from April 1, 2011 to March 31, 2012. During the fiscal year ended March 31, 2013, the Company awarded 10,854 shares for services provided from April 1, 2012 to March 31, 2013. During the six month period ended September 30, 2013, the Company awarded 10,526 shares for services provided from April 1, 2013 to September 30, 2013. Grant date fair market value for all these awards is the average of the high and low trading prices of the Company’s common stock on the date of grant.

On July 31, 2008, the Company’s Board of Directors authorized management to make payments effective as of that date to the participants in the management bonus program. Pursuant to the terms of the management bonus program, the Company issued 478,232 shares of common stock to such employee participants.

Stock Options - Stock options granted to management employees vest over three years in equal annual installments. All options issued through September 30, 2013 expire ten years from the date of grant. Stock option grant date fair values are determined at the date of grant using a Black-Scholes option pricing model, a closed-form fair value model based on market prices at the date of grant. At each grant date the Company has estimated a dividend yield of 0%.  The weighted average risk free interest rate within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant, which was 4.14% for the fiscal 2009 (July 2008) grant. Expected volatility for the fiscal 2009 grants was based on the prior 26 week period, which reflected trading and volume after the Company made major announcements on acquisitions and capital investments. Expected volatility was 39.49% for the fiscal 2009 grant. Options outstanding (479,785) at September 30, 2013, had a remaining weighted average contractual life of approximately four years and eight months.  The Company recorded compensation expenses of $Nil for the six month periods ended September 30, 2013 and September 30, 2012, respectively. All of the stock options granted in February 2008 (243,199) and July 2008 (236,586), had vested as of September 30, 2013.

Shares issued under Employees’ Retirement Savings Plans - The Company issued an aggregate of 204,336 shares to the individual retirement plans of all eligible Canadian employees under the LTIP from July 1, 2009 through September 30, 2013.  The Canadian employees’ plans are managed by independent brokerages. These shares vested immediately but are subject to the Company’s Insider Trading Policy. The shares were issued using the fair value share price, as defined by the LTIP, as of the first trading day of each month for that previous period’s accrued expense. The Company granted $Nil of equity of such accrued compensation expense for each of the six month periods ended September 30, 2013 and September 30, 2012.

17. STOCKHOLDERS’ EQUITY (continued)

Shares issued in lieu of cash compensation - The Company experienced a decrease in customer demand at the beginning of the 2009 sailing season and in an effort to maximize the Company’s liquidity, the Compensation Committee of the Company’s Board of Directors requested that five of the Company’s executive officers and all of its outside directors receive common stock as compensation in lieu of cash until the Company had better visibility about its outlook. As of November 16, 2009, the Company issued 158,325 shares to such officers and all of its outside directors at the average of the high and low trading prices Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately. Beginning the third quarter of the fiscal year ended March 31, 2010, such executives and outside directors’ compensation reverted back to cash compensation.

On September 16, 2010, the Company issued 15,153 shares to a key executive for payment of the fiscal year 2010 bonus at the average of the high and low trading prices of the Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately. On February 15, 2013, the Company issued 94,993 shares to eligible Canadian and US employees for a bonus at the average of the high and low trading prices of the Company’s common stock on the date of grant. The shares were issued under the LTIP and vested immediately.

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EARNINGS PER SHARE (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended			6 Months Ended		12 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Earnings Per Share [Line Items]
Common stock, shares issuable	17,925,129			17,925,129		17,860,266
Common stock, shares outstanding	17,925,129			17,925,129		17,860,266
Common stock, shares authorized	50,000,000			50,000,000		50,000,000
Numerator:
NET (LOSS) INCOME BEFORE PREFERRED STOCK DIVIDENDS	$ 1,215	$ 2,578	$ 2,882	$ 3,793	$ 5,977	$ (3,819)
PREFERRED STOCK DIVIDENDS	(879)		(782)	(1,733)	(1,540)
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 336		$ 2,100	$ 2,060	$ 4,437
Denominator:
Weighted average common shares for basic EPS	17,919,524		17,724,389	17,897,856	17,722,242
Effect of dilutive securities:
Average price during period (in dollars per share)	$ 5.08		$ 7.71	$ 5.34	$ 8.02
Long term incentive stock option plan (in shares)	479,785		479,785	479,785	479,785
Average exercise price of stock options (in dollars per share)	$ 5.66		$ 5.66	$ 5.66	$ 5.66
Shares that could be acquired with the proceeds of options	0		352,325	0	338,635
Dilutive shares due to options	0		127,460	0	141,150
Weighted average convertible preferred shares at $6.20	2,419,355		2,419,355	2,419,355	2,419,355
Weighted Average Number of Shares Outstanding, Diluted	20,338,879		20,271,204	20,317,211	20,282,747
Weighted Average Number of Shares Outstanding, Basic and Diluted	17,919,524		17,724,389	17,897,856	17,722,242
Basic EPS (in dollars per share)	$ 0.02		$ 0.12	$ 0.12	$ 0.25
Diluted EPS (in dollars per share)	$ 0.02		$ 0.12	$ 0.12	$ 0.25
Series A Preferred Stock [Member]
Effect of dilutive securities:
Conversion price per share	$ 6.20		$ 6.20	$ 6.20	$ 6.20

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ACCRUED LIABILITIES (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Payables and Accruals [Abstract]
Deferred financing and other transaction costs	$ 0	$ 26
Payroll compensation and benefits	3,326	1,926
Preferred stock dividends	15,189	13,456
Professional fees	363	385
Interest	414	754
Winter work, deferred drydock and captial expenditures	14	2,438
Capital and franchise taxes	53	113
Other	1,629	2,218
Accrued liabilities	$ 20,988	$ 21,316

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VESSEL ACQUISITIONS

6 Months Ended

Sep. 30, 2013

Vessel Acquisitions [Abstract]

VESSEL ACQUISITIONS

VESSEL ACQUISITIONS

On February 11, 2011, Black Creek and Black Creek Holdings entered into, and consummated the transactions contemplated by, an Asset Purchase Agreement (the “Asset Purchase Agreement”) with Reserve Holdings, LLC (“Reserve”), and Buckeye Holdings, LLC (“Buckeye” and, together with Reserve, the “Sellers”).  Under the Asset Purchase Agreement, Black Creek purchased two articulated tug/barge units (the “Vessels”) for consideration consisting of (i) $35,500 cash paid at closing, (ii) $3,600 cash to be paid by Black Creek Holdings in 72 monthly installments of $50 beginning on April 15, 2011 (the "Deferred Payments"); (iii) a promissory note of Black Creek Holdings in the principal amount of $1,500 (the “Note”), as described below; and (iv) 1,305,963 shares of the Company’s common stock (the “Shares”).

11. VESSEL ACQUISITIONS (continued)

The estimated fair values of assets acquired were as follows:

Current assets	$	94
Property and equipment	45,000
Other identifiable intangible assets	1,836
	$	46,930

The Asset Purchase Agreement provided for the Sellers to use their commercially reasonable efforts to seek the consent to the assignment to Black Creek of certain vessel transportation agreements pursuant to which the Sellers and their affiliates provide freight transportation services to third parties (each such agreement, a “VTA”).  As of March 31, 2011, all of the VTAs had been assigned to Black Creek.  The Asset Purchase Agreement also provided for Black Creek to assume the Sellers’ and their affiliates’ obligations relating to winter work and maintenance that was being performed on the Vessels at the time of their acquisition.

The Note, dated February 11, 2011, bore interest at a rate of 6% per annum, and all principal and interest thereon was due and paid on December 15, 2011.

On February 11, 2011, the Company entered into a guaranty (the “Guaranty”) to and for the benefit of each of the Sellers pursuant to which the Company guaranteed Black Creek Holdings’ obligation to make the Deferred Payments and its obligations under the Note.

The acquisition of the Vessels was financed in part by the Black Creek credit agreement described in Note 14 and the issuance of the Shares.

On July 21, 2011, Lower Lakes completed the acquisition of the MARITIME TRADER (the "Trader"), a Canadian-flagged dry bulk carrier, pursuant to the terms of an asset purchase agreement, dated as of July 8, 2011, by and between the Company and Marcon International Inc., in its capacity as court-appointed seller of the Trader.  Pursuant to the terms of such asset purchase agreement, Lower Lakes’ acquisition of the Trader was subject only to the final approval of the Federal Court of Canada, which approval was granted on July 15, 2011.  Lower Lakes purchased the Trader for an aggregate purchase price of CDN $2,667 with borrowings under the Canadian term loan. Following its acquisition, the Trader was renamed the MANITOBA.

On October 14, 2011, Lower Lakes completed the acquisition of the bulk carrier TINA LITRICO (the "Tina"), pursuant to the terms of an Asset Purchase Agreement, dated as of September 21, 2011, by and among Lower Lakes, Grand River and U.S. United Ocean Service, LLC ("USUOS"). Lower Lakes purchased the Tina for $5,250, plus the value of the remaining bunkers and unused lubricating oils on board the Tina at the closing of the acquisition. The acquisition was funded by the proceeds from the equity offering described in Note 17. Following its acquisition, the Tina was renamed the TECUMSEH.

On December 1, 2011, Grand River entered into, and consummated the transactions contemplated by, an Asset Purchase Agreement (the “Barge Agreement”) with U.S. Bank National Association, as Trustee of the GTC Connecticut Statutory Trust, pursuant to which Grand River acquired a self-unloading barge MARY TURNER (the “Barge”). The purchase price for the Barge, together with the related stores and equipment, was $11,954 plus the value of the remaining bunkers and unused lubricating oils onboard the Barge at the closing of the acquisition. Following its acquisition, the Barge was renamed the ASHTABULA.

Also on December 1, 2011, Grand River completed the acquisition of a tug BEVERLY ANDERSON (the “Tug”), pursuant to the terms of an Asset Purchase Agreement, dated as of September 21, 2011 (the “Tug Agreement”), by and between Grand River and USUOS. Grand River purchased the Tug for $7,796 plus the value of the remaining bunkers and unused lubricating oils on board the Tug at the closing of the acquisition. Following its acquisition, the Tug was renamed the DEFIANCE.

The acquisitions of the Barge and the Tug were funded with additional borrowings under the US term loan as described in Note 14.

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INCOME TAXES (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	$ 7,856	$ 4,610	$ 11,961	$ 9,759
Current Federal Tax Expense (Benefit)	0	0	0	0
Deferred Federal Income Tax Expense (Benefit)	6,641	1,728	8,168	3,782
Income Tax Expense (Benefit)	6,641	1,728	8,168	3,782
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate			68.30%	38.80%
Deferred income taxes (Note 6)	262		262		262
Deferred Tax Liabilities, Net, Current	0		0		173
Deferred Tax Assets, Net, Noncurrent	0		0		2,203
Deferred Tax Liabilities, Net, Noncurrent	$ 9,511		$ 9,511		$ 3,532

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LONG-TERM DEBT (Schedule of Long-term Debt) (Details)	3 Months Ended		6 Months Ended							28 Months Ended				36 Months Ended		19 Months Ended	22 Months Ended			47 Months Ended		19 Months Ended	22 Months Ended			47 Months Ended		19 Months Ended	22 Months Ended			47 Months Ended		42 Months Ended								39 Months Ended		42 Months Ended		0 Months Ended	33 Months Ended
	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Sep. 30, 2013 USD ($)	Sep. 30, 2012 USD ($)	Mar. 31, 2013 USD ($)	Sep. 30, 2013 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member]	Mar. 31, 2013 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member]	Sep. 30, 2013 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member]	Mar. 31, 2013 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member]	Dec. 31, 2013 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Sep. 30, 2013 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member]	Mar. 31, 2013 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member]	Feb. 11, 2011 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Feb. 11, 2014 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] LIBOR [Member]	Feb. 11, 2014 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] US Base Rate [Member]	Jun. 30, 2016 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] CAD	Sep. 30, 2014 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] CAD	Sep. 30, 2013 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] USD ($)	Mar. 31, 2013 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] USD ($)	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] Canadian Prime Rate [Member]	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] Canadian BA Rate [Member]	Jun. 30, 2016 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Sep. 30, 2014 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Sep. 30, 2013 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Mar. 31, 2013 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] LIBOR [Member]	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] US Base Rate [Member]	Jun. 30, 2016 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Sep. 30, 2014 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Sep. 30, 2013 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Mar. 31, 2013 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] LIBOR [Member]	Aug. 01, 2016 Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] US Base Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Canadian Prime Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Canadian BA Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] LIBOR [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] US Base Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian Prime Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian BA Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] Canadian Prime Rate [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] Canadian BA Rate [Member]	Mar. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] CAD	Mar. 01, 2015 Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian engine loan [Member] CAD	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] LIBOR [Member]	Apr. 01, 2015 Second Amended and Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] US Base Rate [Member]	Dec. 01, 2011 Second Amended and Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Mar. 01, 2015 Second Amended and Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] USD ($)	Aug. 30, 2012 Secured Debt [Member] Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian Term Loan [Member] CAD	Aug. 30, 2012 Secured Debt [Member] Third Amended & Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] US Term Loan [Member] USD ($)	Aug. 30, 2012 Secured Debt [Member] Third Amended & Restated Credit Agreement [Member] Black Creek Holdings, Inc. [Member] Black Creek US term loan [Member] USD ($)	Sep. 28, 2011 Secured Debt [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian Term Loan [Member] CAD	Sep. 28, 2011 Secured Debt [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] USD ($)	Sep. 28, 2011 Secured Debt [Member] Second Amended and Restated Credit Agreement [Member] Grand River Navigation Company, Inc. [Member] US Term Loan [Member] USD ($)	Aug. 30, 2012 Component 1 [Member] Revolving Credit Facility [Member] Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] CAD	Sep. 28, 2011 Component 1 [Member] Revolving Credit Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] CAD	Aug. 30, 2012 Component 1 [Member] Swing Line Facility [Member] Third Amended & Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] CAD	Sep. 28, 2011 Component 1 [Member] Swing Line Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] CAD	Aug. 30, 2012 Component 2 [Member] Revolving Credit Facility [Member] Third Amended & Restated Credit Agreement [Member] Lower Lakes Transportation Company [Member] USD ($)	Sep. 28, 2011 Component 2 [Member] Revolving Credit Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Transportation Company [Member] USD ($)	Aug. 30, 2012 Component 2 [Member] Seasonal Overadvance Facility [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Aug. 30, 2012 Component 2 [Member] Seasonal Overadvance Facility [Member] Third Amended & Restated Credit Agreement [Member] CAD	Dec. 01, 2011 Component 2 [Member] Seasonal Overadvance Facility [Member] Second Amended and Restated Credit Agreement [Member] USD ($)	Sep. 28, 2011 Component 2 [Member] Seasonal Overadvance Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Towing Ltd. [Member] CAD	Sep. 28, 2011 Component 2 [Member] Seasonal Overadvance Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Transportation Company [Member] USD ($)	Aug. 30, 2012 Component 2 [Member] Swing Line Facility [Member] Third Amended & Restated Credit Agreement [Member] Lower Lakes Transportation Company [Member] USD ($)	Sep. 28, 2011 Component 2 [Member] Swing Line Facility [Member] Second Amended and Restated Credit Agreement [Member] Lower Lakes Transportation Company [Member] USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Current Borrowing Capacity																																																						13,500,000	13,500,000	4,000,000	4,000,000	$ 13,500,000	$ 13,500,000	$ 12,000,000	12,000,000	$ 12,000,000	10,000,000	$ 10,000,000	$ 50,000	$ 4,000,000
Long-term Debt, Current and Noncurrent [Abstract]
Long-term debt	140,869,000		140,869,000		143,390,000													50,135,000	51,493,000					62,524,000	63,325,000					28,210,000	28,572,000
Less amounts due within 12 months	3,612,000		3,612,000		3,630,000
Long-term debt, excluding current maturities	137,257,000		137,257,000		139,760,000
Basis spread on variable rate														4.75%	3.75%					3.75%	4.75%					4.75%	3.75%					4.75%	3.75%	3.50%	4.50%	4.50%	3.50%	3.50%	4.50%	4.00%	5.00%			4.50%	3.50%
Debt Instrument, Increase, Additional Borrowings																																														25,000,000
Quarterly payment										517,000						662,000	331,000					802,000	401,000					362,000	181,000													936,000	133,000			367,000	704,000
Effective interest rate including effect of interest rate swap contracts						6.03%	6.03%	5.01%	5.88%
Effective interest rate						6.03%	6.04%	5.01%	5.04%		5.01%	5.04%
Debt Instrument, Face Amount													31,000,000																																			52,979,000	64,127,000	28,934,000	56,133,000	6,267,000	17,233,000
Loss on extinguishment of debt	$ 0	$ 3,339,000	$ 0	$ 3,339,000

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ACCRUED LIABILITIES (Tables)

6 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

Components of accrued liabilities

Accrued liabilities are comprised of the following:

	September 30, 2013		March 31, 2013
Deferred financing and other transaction costs	$	—	$	26
Payroll compensation and benefits	3,326		1,926
Preferred stock dividends	15,189		13,456
Professional fees	363		385
Interest	414		754
Winter work, deferred drydock expenditures and capital expenditures	14		2,438
Capital and franchise taxes	53		113
Other	1,629		2,218
	$	20,988	$	21,316

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SEGMENT INFORMATION

6 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company has identified only one reportable segment under ASC 280 “Segment Reporting”.

Information about geographic operations is as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Revenue by country:
Canada	$	28,522	$	30,538	$	56,966	$	62,311
United States	22,019		20,033		41,976		37,872
	$	50,541	$	50,571	$	98,942	$	100,183

Revenues from external customers are allocated based on the country of the legal entity of the Company in which the revenues were recognized.

	September 30, 2013		March 31, 2013
Property and equipment by country:
Canada	$	96,048	$	100,887
United States	114,180		118,197
	$	210,228	$	219,084
Intangible assets by country:
Canada	$	7,417	$	8,081
United States	4,179		4,531
	$	11,596	$	12,612
Goodwill by country:
Canada	$	8,284	$	8,284
United States	1,909		1,909
	$	10,193	$	10,193
Total assets by country:
Canada	$	135,244	$	134,230
United States	138,906		136,608
	$	274,150	$	270,838

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INTEREST EXPENSE

6 Months Ended

Sep. 30, 2013

Interest Expense [Abstract]

INTEREST EXPENSE

INTEREST EXPENSE

Interest expense is comprised of the following:

	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Bank indebtedness	$	245	$	282		$	526	$	533
Amortization of deferred financing costs	135		219			271		547
Long-term debt	1,928		1,949			3,862		3,745
Interest rate swaps	—		280			—		564
Interest rate caps	2		—			3		—
Deferred payment liability	35		44			72		89
Interest capitalized	—		(538		)	—		(538		)
	$	2,345	$	2,236		$	4,734	$	4,940

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ACCOUNTS RECEIVABLE (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]
Allowance for doubtful accounts	$ 15	$ 49

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OTHER ASSETS (Tables)

6 Months Ended

Sep. 30, 2013

Other Assets [Abstract]

Schedule of other assets

	September 30, 2013		March 31, 2013
Customer contract costs	$	955	$	1,156
Prepaid expenses and other assets	8,309		7,736
Total	$	9,264	$	8,892
Current portion	8,351		7,842
Other long term assets	$	913	$	1,050

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COMMITMENTS (Tables)

6 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

Schedule of operating lease rental and sublease rental payments

Operating lease rental and sublease rental payments included in general and administrative expenses are as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Operating leases	$	146	$	108	$	277	$	212
Operating sublease	40		39		79		77
	$	186	$	147	$	356	$	289

Schedule of future minimum rental commitments

The Company’s future minimum rental commitments under other operating leases are as follows.

Twelve month period ending:

September 30, 2014	$	492
September 30, 2015	415
September 30, 2016	299
September 30, 2017	241
September 30, 2018	211
Thereafter	578
	$	2,236

Schedule of charter commitments

Twelve month period ending:

September 30, 2014	$	760
September 30, 2015	760
September 30, 2016	760
September 30, 2017	760
September 30, 2018	760
Thereafter	253
	$	4,053

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PROPERTY AND EQUIPMENT (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Cost	$ 271,164	$ 271,891
Accumulated depreciation	60,936	52,807
Property and equipment, net	210,228	219,084
Vessels [Member]
Property, Plant and Equipment [Line Items]
Cost	263,919	264,685
Accumulated depreciation	57,152	49,404
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Cost	3,779	3,779
Accumulated depreciation	1,727	1,496
Furniture and equipment [Member]
Property, Plant and Equipment [Line Items]
Cost	500	494
Accumulated depreciation	229	200
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Cost	21	21
Accumulated depreciation	14	13
Computer, communication equipment and purchased software [Member]
Property, Plant and Equipment [Line Items]
Cost	2,945	2,912
Accumulated depreciation	$ 1,814	$ 1,694

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Amortization periods of intangible assets

Intangible assets consist primarily of goodwill, deferred financing costs, trademarks, trade names and customer relationships and contracts. Intangible assets are amortized as follows:

Trademarks and trade names	10 years straight-line
Customer relationships and contracts	15 years straight-line

Useful lives of property and equipment

Property and equipment are recorded at cost.  Depreciation methods for property and equipment are as follows:

Vessels	5 - 25 years straight-line
Leasehold improvements	7 - 11 years straight-line
Vehicles	20% declining-balance
Furniture and equipment	20% declining-balance
Computer equipment	45% declining-balance
Communication equipment	20% declining-balance

Open tax years

There have been no recent examinations by the U.S. taxing authorities. Lower Lakes was examined by the Canadian taxing authority for the tax years 2009 and 2010 and such examination is now complete.  This audit did not result in any material adjustments for such periods. The Company's primary U.S. state income tax jurisdictions are Illinois, Indiana, Michigan, Minnesota, Pennsylvania, Wisconsin, Ohio and New York and its only international jurisdictions are Canada and its province of Ontario. The following table summarizes the open fiscal tax years for each major jurisdiction:

Jurisdiction	Open Tax Years
Federal (USA)	2009 – 2013
Various states	2009 – 2013
Federal (Canada)	2008 – 2013
Ontario	2008 – 2013

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INTEREST EXPENSE (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Interest Expense [Line Items]
Amortization of deferred financing costs	$ 135	$ 219	$ 271	$ 547
Interest rate swaps	0	280	0	564
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments	2	0	3	0
Deferred payment liability	35	44	72	89
Interest capitalized	0	(538)	0	(538)
Interest expense	2,345	2,236	4,734	4,940
Bank indebtedness
Interest Expense [Line Items]
Debt	245	282	526	533
Long-term debt - senior
Interest Expense [Line Items]
Debt	$ 1,928	$ 1,949	$ 3,862	$ 3,745

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STOCKHOLDERS' EQUITY (Share-based Compensation) (Details) (USD $) In Thousands, except Share data, unless otherwise specified	6 Months Ended			6 Months Ended	12 Months Ended	0 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended			15 Months Ended	0 Months Ended	6 Months Ended		51 Months Ended	1 Months Ended		3 Months Ended	6 Months Ended		12 Months Ended	0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended			12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Feb. 11, 2011	Sep. 30, 2013 Stock Options [Member]	Mar. 31, 2009 Stock Options [Member]	Feb. 13, 2008 Long Term Incentive Plan 2007 [Member]	Sep. 30, 2013 Long Term Incentive Plan 2007 [Member]	Dec. 31, 2008 Long Term Incentive Plan 2007 [Member]	Mar. 31, 2013 Long Term Incentive Plan 2007 [Member]	Mar. 31, 2012 Long Term Incentive Plan 2007 [Member]	Mar. 31, 2011 Long Term Incentive Plan 2007 [Member]	Mar. 31, 2010 Long Term Incentive Plan 2007 [Member]	Jul. 31, 2008 Long Term Incentive Plan 2007 [Member] Management [Member]	Sep. 30, 2013 Long Term Incentive Plan 2007 [Member] Canadian employees [Member]	Sep. 30, 2012 Long Term Incentive Plan 2007 [Member] Canadian employees [Member]	Sep. 30, 2013 Long Term Incentive Plan 2007 [Member] Canadian employees [Member]	Jul. 31, 2008 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Feb. 29, 2008 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Sep. 30, 2012 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Sep. 30, 2013 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Sep. 30, 2012 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Mar. 31, 2009 Long Term Incentive Plan 2007 [Member] Stock Options [Member]	Oct. 13, 2009 October 13, 2009 Grants [Member]	Sep. 30, 2013 October 13, 2009 Grants [Member]	Sep. 30, 2012 October 13, 2009 Grants [Member]	Sep. 30, 2013 October 13, 2009 Grants [Member]	Sep. 30, 2012 October 13, 2009 Grants [Member]	Feb. 24, 2010 February 24, 2010 Grants [Member] key_executives	Sep. 30, 2013 February 24, 2010 Grants [Member]	Sep. 30, 2012 February 24, 2010 Grants [Member]	Sep. 30, 2013 February 24, 2010 Grants [Member]	Sep. 30, 2012 February 24, 2010 Grants [Member]	Apr. 05, 2010 April 5, 2010 Grants [Member] key_executives	Sep. 30, 2013 April 5, 2010 Grants [Member]	Sep. 30, 2012 April 5, 2010 Grants [Member]	Sep. 30, 2013 April 5, 2010 Grants [Member]	Sep. 30, 2012 April 5, 2010 Grants [Member]	Apr. 08, 2011 April 8, 2011 Grants [Member] key_executives	Sep. 30, 2013 April 8, 2011 Grants [Member]	Sep. 30, 2012 April 8, 2011 Grants [Member]	Sep. 30, 2013 April 8, 2011 Grants [Member]	Sep. 30, 2012 April 8, 2011 Grants [Member]	Apr. 11, 2012 April 11, 2012 Grants [Member] key_executives	Sep. 30, 2013 April 11, 2012 Grants [Member]	Sep. 30, 2012 April 11, 2012 Grants [Member]	Sep. 30, 2013 April 11, 2012 Grants [Member]	Sep. 30, 2012 April 11, 2012 Grants [Member]	Feb. 22, 2013 February 22, 2013 Grants [Member] [Member]	Sep. 30, 2013 February 22, 2013 Grants [Member] [Member]	Sep. 30, 2013 February 22, 2013 Grants [Member] [Member]	Jun. 05, 2013 June 5, 2013 Grants [Member]	Sep. 30, 2013 June 5, 2013 Grants [Member]	Sep. 30, 2013 June 5, 2013 Grants [Member]	Feb. 15, 2013 Shares Issued in Lieu of Cash Compensation [Member]	Nov. 16, 2009 Shares Issued in Lieu of Cash Compensation [Member]	Sep. 16, 2009 Shares Issued in Lieu of Cash Compensation [Member]	Mar. 31, 2009 Shares Issued in Lieu of Cash Compensation [Member] executive_officers	Sep. 30, 2013 Series A Preferred Stock [Member]	Mar. 31, 2013 Series A Preferred Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares awarded													478,232	0	0	204,336							39,660					76,691					37,133					86,217					45,754					32,387			54,337			94,993	158,325	15,153
Share price, average of high and low price			$ 5.175																				$ 3.17					$ 4.34					$ 5.32					$ 7.94					$ 8.68					$ 5.96			$ 5.55
Annual vesting rate																							20.00%
Expense recorded																			$ 0	$ 0	$ 0			$ 7	$ 7	$ 13	$ 13		$ 0	$ 28	$ 0	$ 56		$ 0	$ 17	$ 0	$ 33		$ 56	$ 56	$ 113	$ 113		$ 33	$ 33	$ 66	$ 66		$ 25	$ 49		$ 25	$ 33
Number of key executives to receive awards																												2					4					6					2					4			6
Award vesting period																				3 years								3 years					3 years					3 years					3 years					2 years			3 years
Number of shares authorized							2,500,000
Number of shares available for grant							597,796		662,659
Shares issued to non-employees						12,909	10,526	15,948	10,854	10,722	14,007	37,144
Options expiration period																				10 years
Expected dividend rate																				0.00%
Risk free interest rate																						4.14%
Expected volatility rate																						39.49%
Expected volatility rate measurement period					P26W
Weighted average remaining contractual term of options outstanding				4 years 8 months
Number of executive officers asked to receive shares in lieu of cash compensation																																																									5
Preferred Stock, Effective Dividend Rate, Percentage																																																										12.00%	12.00%
Number of options outstanding																				479,785
Options granted																	236,586	243,199
Share-based Compensation	$ 354	$ 435

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FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Sep. 30, 2013

Financial Instruments [Abstract]

Schedule of contracts not designated for hedge accounting treatment, changes in fair value recorded in earnings

The Company did not designate the two expired swap contracts for hedge accounting treatment and therefore changes in fair value of these contracts were recorded in earnings as follows:

Derivatives not designated as hedging instrument:	Location of gain -Recognized in earnings	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Interest rate swap contracts liability	Other (income) and expenses	$	—	$	(272	)	$	—	$	(542	)

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OUTSIDE VOYAGE CHARTER FEES

6 Months Ended

Sep. 30, 2013

Outside Voyage Charter Fees [Abstract]

OUTSIDE VOYAGE CHARTER FEES

OUTSIDEVOYAGE CHARTER FEES

Outside voyage charter fees relate to the subcontracting of external vessels chartered to service the Company’s customers and supplement the existing shipments made by the Company’s operated vessels.

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Consolidated Statements of Stockholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Preferred Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income
Balances at Mar. 31, 2012	$ 79,345	$ 1	$ 14,900	$ 87,853	$ (25,349)	$ 1,940
Balances (in shares) at Mar. 31, 2012		17,676,278	300,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock issued in lieu of cash compensation (in shares)		94,993	0
Restricted stock issued (Note 17) (in shares)		78,141	0
Unrestricted stock issued (Note 17) (in shares)		10,854	0
Net (loss) income	(3,819)				(3,819)
Preferred stock dividends	(3,173)				(3,173)
Stock issued in lieu of cash compensation	559	0	0	559	0	0
Restricted stock issued (Note 17)	590	0	0	590	0	0
Unrestricted stock issued (Note 17)	75	0	0	75	0	0
Translation adjustment	(1,159)					(1,159)
Balances at Mar. 31, 2013	72,418	1	14,900	89,077	(32,341)	781
Balances (in shares) at Mar. 31, 2013		17,860,266	300,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Restricted stock issued (Note 17) (in shares)		54,337	0
Unrestricted stock issued (Note 17) (in shares)		4,859	0
Net (loss) income	2,578				2,578
Preferred stock dividends	(854)				(854)
Restricted stock issued (Note 17)	301	0	0	301	0	0
Unrestricted stock issued (Note 17)	26	0	0	26	0	0
Translation adjustment	(1,579)					(1,579)
Balances at Jun. 30, 2013	72,890	1	14,900	89,404	(30,617)	(798)
Balances (in shares) at Jun. 30, 2013		17,919,462	300,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Unrestricted stock issued (Note 17) (in shares)		5,667	0
Net (loss) income	1,215				1,215
Preferred stock dividends	(879)				(879)
Unrestricted stock issued (Note 17)	27	0	0	27	0	0
Translation adjustment	871					871
Balances at Sep. 30, 2013	$ 74,124	$ 1	$ 14,900	$ 89,431	$ (30,281)	$ 73
Balances (in shares) at Sep. 30, 2013		17,925,129	300,000

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DESCRIPTION OF BUSINESS

6 Months Ended

Sep. 30, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS

Rand Logistics, Inc. (the “Company”), a Delaware corporation, is a leading provider of bulk freight shipping services throughout the Great Lakes region. The Company believes that it is the only company providing significant domestic port-to-port services to both Canada and the United States in the Great Lakes region. The Company maintains this operating flexibility by operating both U.S. and Canadian flagged vessels in compliance with the Shipping Act, 1916, and the Merchant Marine Act, 1920, commonly referred to as the Jones Act in the U.S. and the Coasting Trade Act in Canada, respectively.

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ACCOUNTS RECEIVABLE

6 Months Ended

Sep. 30, 2013

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

Trade receivables are presented net of an allowance for doubtful accounts. The allowance was $15 as of September 30, 2013 and $49 as of March 31, 2013. The Company manages and evaluates the collectability of its trade receivables as follows: management reviews aged accounts receivable listings and contact is made with customers that have extended beyond agreed upon credit terms. Senior management and operations are notified so that when they are contacted by such customers for a future delivery, they can request that the customer pay any past due amounts before any future cargo is booked for shipment. Customer credit risk is also managed by reviewing the history of payments by the customer, the size and credit quality of the customer, the period of time remaining within the shipping season and demand for future cargos.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and consolidation

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and include the accounts of Rand Finance Corp. (“Rand Finance”), Rand LL Holdings Corp. ("Rand LL Holdings") and Black Creek Shipping Holding Company, Inc. ("Black Creek Holdings"), wholly-owned subsidiaries of the Company, the accounts of Lower Lakes Towing Ltd. ("Lower Lakes"), Lower Lakes Transportation Company ("Lower Lakes Transportation") and Grand River Navigation Company, Inc. ("Grand River"), each of which is a wholly-owned subsidiary of Rand LL Holdings, Black Creek Shipping Company, Inc. ("Black Creek"), a wholly-owned subsidiary of Black Creek Holdings, and Lower Lakes Ship Repair Company Ltd. ("Lower Lakes Ship Repair"), a wholly-owned subsidiary of Lower Lakes.

The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated. In the opinion of management, the interim financial statements contain all adjustments necessary (consisting of normal recurring accruals) to present fairly the financial information contained herein. Operating results for the interim period presented are not necessarily indicative of the results to be expected for a full year, in part due to the seasonal nature of the business. The comparative balance sheet amounts are derived from audited consolidated financial statements for the fiscal year ended and as at March 31, 2013. The statements and related notes have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements that were included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2013.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Accounts receivable and concentration of credit risk

The majority of the Company’s accounts receivable are amounts due from customers and other accounts receivable, including insurance and Harmonized Sales Tax refunds.  The majority of accounts receivable are due within 30 to 60 days and are stated at amounts due from customers net of an allowance for doubtful accounts. The Company extends credit to its customers based upon its assessment of their creditworthiness and past payment history. Accounts outstanding longer than the contractual payment terms are considered past due. The Company has historically had no significant bad debts. Interest is not accrued on outstanding receivables.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Revenue and operating expenses recognition

The Company generates revenues from freight billings under contracts of affreightment (voyage charters) generally on a rate per ton basis based on origin-destination and cargo carried. Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period when the following conditions are met: the Company has a signed contract of affreightment, the contract price is fixed or determinable and collection is reasonably assured.  Included in freight billings are other fees such as fuel surcharges and other freight surcharges, which represent pass-through charges to customers for toll fees, lockage fees and ice breaking fees paid to other parties.  Fuel surcharges are recognized ratably over the duration of the voyage, while freight surcharges are recognized when the associated costs are incurred. Freight surcharges are less than 5% of total revenue.

Marine operating expenses such as crewing costs, fuel, tugs and insurance are recognized as incurred or consumed and thereby are recognized ratably in each reporting period. Repairs and maintenance and certain other insignificant costs are recognized as incurred.

The Company subcontracts excess customer demand to other freight providers.  Service to customers under such arrangements is transparent to the customer and no additional services are provided to customers.  Consequently, revenues recognized for customers serviced by freight subcontractors are recognized on the same basis as described above.  Costs for subcontracted freight providers, presented as “outside voyage charter fees” in the consolidated statements of operations, are recognized as incurred and therefore are recognized ratably over the voyage.

The Company accounts for sales taxes imposed on its services on a net basis in the consolidated statements of operations.

In addition, all revenues are presented on a gross basis.

Vessel acquisitions

Vessels are stated at cost, which consists of the purchase price and any material expenses incurred upon acquisition, such as initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for its initial voyage. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earnings capacity or improve the efficiency or safety of the vessels. Significant financing costs incurred during the construction period of the vessels are also capitalized and included in the vessels' cost.

Fuel and lubricant inventories

Raw materials, fuel and certain operating supplies are accounted for on a first-in, first-out cost method (based on monthly averages). Raw materials and fuel are stated at the lower of actual cost (first-in, first-out method) or market. Operating supplies are stated at actual cost or average cost.

Intangible assets and goodwill

Intangible assets consist primarily of goodwill, deferred financing costs, trademarks, trade names and customer relationships and contracts. Intangible assets are amortized as follows:

Trademarks and trade names	10 years straight-line
Customer relationships and contracts	15 years straight-line

Deferred financing costs are amortized on a straight-line basis over the term of the related debt, which approximates the effective interest method.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Property and equipment

Property and equipment are recorded at cost.  Depreciation methods for property and equipment are as follows:

Vessels	5 - 25 years straight-line
Leasehold improvements	7 - 11 years straight-line
Vehicles	20% declining-balance
Furniture and equipment	20% declining-balance
Computer equipment	45% declining-balance
Communication equipment	20% declining-balance

Impairment of fixed assets

Fixed assets (e.g. property and equipment) and finite-lived intangible assets (e.g. customer lists) are tested for impairment upon the occurrence of a triggering event that indicates the carrying value of such an asset or asset group (e.g. tugs and barges), might be no longer recoverable. Examples of such triggering events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset(s), a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business.

Once a triggering event has occurred, the recoverability test employed is based on whether the intent is to hold the asset(s) for continued use or to hold the asset(s) for sale. If the intent is to hold the asset(s) for continued use, the recoverability test involves a comparison of undiscounted cash flows excluding interest expense, against the carrying value of the asset(s) as an initial test. If the carrying value of such asset(s) exceeds the undiscounted cash flow, the asset(s) would be deemed to be impaired. Impairment would then be measured as the difference between the fair value of the fixed or amortizing intangible asset and the carrying value of such asset(s). The Company generally determines fair value by using the discounted cash flow method. If the intent is to hold the asset(s) for sale and certain other criteria are met (i.e. the asset(s) can be disposed of currently, appropriate levels of authority have approved the sale and there is an actively pursuing buyer), the impairment test is a comparison of the asset’s carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company has determined that there were no adverse changes in our markets or other triggering events that could affect the valuation of our assets during the six month period ended September 30, 2013.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment of goodwill

The Company annually reviews the carrying value of goodwill to determine whether impairment may exist. In accordance with Accounting Standards Codification (“ASC”) 350 “Intangibles-Goodwill and Other” and Accounting Standards Update (“ASU”) 2011-08 Intangibles—Goodwill and Other (Topic 350) - Testing Goodwill for Impairment requires that goodwill and certain intangible assets be assessed annually for impairment using fair value measurement techniques. Specifically, goodwill impairment is determined using a three-step process. The first step of the goodwill impairment test is to perform a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. The second step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The estimates of fair value of the Company’s two reporting units, which are the Company’s Canadian and US operations (excluding the parent), are determined using various valuation techniques with the primary techniques being a discounted cash flow analysis and peer analysis. A discounted cash flow analysis requires various judgmental assumptions, including assumptions about future cash flows, growth rates, and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s forecast and long-term estimates. Discount rate assumptions are based on an assessment of the risk inherent in the respective reporting units. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The third step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit.  As of March 31, 2013, the Company conducted the qualitative assessment and determined that the fair value of its two reporting units exceeded their carrying amounts and the remaining two-step impairment testing was therefore not necessary.  The Company has determined that there were no adverse changes in our markets or other triggering events that indicated that it is more likely than not that the fair value of our reporting units is less than the carrying value of our reporting units during the six month period ended September 30, 2013.

Drydock costs

Drydock costs incurred during statutory Canadian and United States certification processes are capitalized and amortized on a straight-line basis over the benefit period, which is generally 60 months. Drydock costs include costs of work performed by third party shipyards and subcontractors and other direct expenses to complete the mandatory certification process.

Repairs and maintenance

The Company’s vessels require repairs and maintenance each year to ensure the fleet is operating efficiently during the shipping season.  The majority of repairs and maintenance are completed in January, February, and March of each year when the vessels are inactive.  The Company expenses such routine repairs and maintenance costs.  Significant repairs to the Company’s vessels (whether owned or available to the Company under a time charter), such as major engine overhauls and major hull steel repairs, are capitalized and amortized over the remaining useful life of the upgrade or asset repaired, or the remaining lease term.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

The Company accounts for income taxes in accordance with ASC 740 “Income Taxes”, which requires the determination of deferred tax assets and liabilities based on the differences between the financial statement and income tax bases of tax assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse.  A valuation allowance is recognized, if necessary, to measure tax benefits to the extent that, based on available evidence, it is more likely than not that they will be realized.

The Company classifies interest expense related to income tax liabilities, when applicable, as part of the interest expense in its consolidated statements of operations rather than income tax expense.  To date, the Company has not incurred material interest expenses or penalties relating to assessed taxation amounts.

There have been no recent examinations by the U.S. taxing authorities. Lower Lakes was examined by the Canadian taxing authority for the tax years 2009 and 2010 and such examination is now complete.  This audit did not result in any material adjustments for such periods. The Company's primary U.S. state income tax jurisdictions are Illinois, Indiana, Michigan, Minnesota, Pennsylvania, Wisconsin, Ohio and New York and its only international jurisdictions are Canada and its province of Ontario. The following table summarizes the open fiscal tax years for each major jurisdiction:

Jurisdiction	Open Tax Years
Federal (USA)	2009 – 2013
Various states	2009 – 2013
Federal (Canada)	2008 – 2013
Ontario	2008 – 2013

Foreign currency translation

The Company uses the U.S. Dollar as its reporting currency.  The functional currency of the Company's Canadian subsidiaries is the Canadian Dollar.  The functional currency of the Company’s U.S. subsidiaries is the U.S. Dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the rate of exchange at the balance sheet date, while revenue and expenses are translated at the average exchange rates prevailing during the respective month.  Components of stockholders’ equity are translated at historical exchange rates.  Exchange gains and losses resulting from translation are reflected in accumulated other comprehensive income or loss.

Advertising costs

The Company expenses all advertising costs as incurred. These costs are included in general and administrative costs and were insignificant during the periods presented.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include the assumptions used in determining the useful lives of long-lived assets, the assumptions used in determining whether assets are impaired, the assumptions used in determining the valuation allowance for deferred income tax assets and the assumptions used in stock based compensation awards. Actual results could differ from those estimates.

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Stock-based compensation

The Company recognizes compensation expense for all newly granted awards and awards modified, repurchased or cancelled based on fair value at the date of grant.

Financial instruments

The Company accounted for its two expired interest rate swap contracts on its term debt utilizing ASC 815 “Derivatives and Hedging”. All changes in the fair value of such swap contracts were recorded in earnings. The fair value of settlement costs, when the contracts were in place, were included in current liabilities on the consolidated balance sheets. No liability remains. Disclosure requirements of ASC 815 are disclosed in Note 21.

Fair value of financial instruments

ASC 820 “Fair Value Measurements and Disclosures” ("ASC 820") defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and establishes a hierarchy that categorizes and prioritizes the inputs to be used to estimate fair value. The three levels of inputs used are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The disclosure requirements of ASC 820 related to the Company’s financial assets and liabilities are presented in Note 21.

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INTEREST EXPENSE (Tables)

6 Months Ended

Sep. 30, 2013

Interest Expense [Abstract]

Components of interest expense

Interest expense is comprised of the following:

	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Bank indebtedness	$	245	$	282		$	526	$	533
Amortization of deferred financing costs	135		219			271		547
Long-term debt	1,928		1,949			3,862		3,745
Interest rate swaps	—		280			—		564
Interest rate caps	2		—			3		—
Deferred payment liability	35		44			72		89
Interest capitalized	—		(538		)	—		(538		)
	$	2,345	$	2,236		$	4,734	$	4,940

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FINANCIAL INSTRUMENTS

6 Months Ended

Sep. 30, 2013

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Fair value of financial instruments

Financial instruments are comprised of cash and cash equivalents, accounts receivable, accounts payable, long-term debts, a subordinated note, a deferred payment liability, accrued liabilities and bank indebtedness.  The estimated fair values of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate book values because of the short-term maturities of these instruments.  The estimated fair value of senior debt approximates the carrying value as the debt bears interest at variable interest rates, which are based on rates for similar debt with similar credit rates in the open market.  The subordinated note and deferred payment liabilities were valued based on the interest rate of similar debt in the open market.

Fair value guidance establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The contract for two interest rate swaps entered into effective February 15, 2008, expired on March 31, 2013. The fair value adjustment of the interest rate swap contracts resulted in a gain of $272 for the three month period ended September 30, 2012 and gain of $542 for the six month period ended September 30, 2012. This gain was included in the Company’s earnings for the three and six month periods ended September 30, 2012.

Foreign exchange risk

Foreign currency exchange risk to the Company results primarily from changes in exchange rates between the Company’s reporting currency, the U.S. Dollar, and the Canadian dollar.  The Company is exposed to fluctuations in foreign exchange as a significant portion of revenue and operating expenses are denominated in Canadian dollars.

21. FINANCIAL INSTRUMENTS (continued)

Interest rate risk

The Company is exposed to fluctuations in interest rates as a result of its banking facilities and senior debt bearing variable interest rates.

In December 2012, the Company entered into two interest rate cap contracts covering 50% of its outstanding term debt at a cap of three month Libor at 2.5% on its US Term Debt borrowings and a cap of three month BA rates at 3.0% on its Canadian Term Debt borrowings. The notional amount on each of these instruments will decrease with each scheduled principal payment. The interest rate cap contracts will terminate on December 1, 2015.

The Company did not designate the two expired swap contracts for hedge accounting treatment and therefore changes in fair value of these contracts were recorded in earnings as follows:

Derivatives not designated as hedging instrument:	Location of gain -Recognized in earnings	Three months ended September 30, 2013		Three months ended September 30, 2012			Six months ended September 30, 2013		Six months ended September 30, 2012
Interest rate swap contracts liability	Other (income) and expenses	$	—	$	(272	)	$	—	$	(542	)

Credit risk

Accounts receivable credit risk is mitigated by the diversification of the Company’s customers among industries and the short shipping season.

Liquidity risk

The ongoing tightened credit in financial markets and continued general economic downturn may adversely affect the ability of the Company’s customers and suppliers to obtain financing for significant operations and purchases and to perform their obligations under agreements with the Company.  The tightening of credit could (i) result in a decrease in, or cancellation of, existing business, (ii) limit new business, (iii) negatively impact the Company’s ability to collect accounts receivable on a timely basis and (iv) affect the eligible receivables that are collateral for the Company’s lines of credit.  The Company makes seasonal net borrowings under its revolving credit facility during the first quarter of each fiscal year to fund working capital needed to commence the sailing season. Such borrowings are then reduced during the second half of each fiscal year.

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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

6 Months Ended

Sep. 30, 2013

Prepaid Expense and Other Assets, Current [Abstract]

Components of prepaid expenses and other current assets

Prepaid expenses and other current assets are comprised of the following:

	September 30, 2013		March 31, 2013
Prepaid insurance	$	491	$	334
Fuel and lubricants	5,689		5,063
Deposits and other prepaids	2,171		2,445
	$	8,351	$	7,842

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VESSEL ACQUISITIONS (Tables)

6 Months Ended

Sep. 30, 2013

Vessel Acquisitions [Abstract]

Schedule of estimated fair values of assets acquired

The estimated fair values of assets acquired were as follows:

Current assets	$	94
Property and equipment	45,000
Other identifiable intangible assets	1,836
	$	46,930

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BANK INDEBTEDNESS (Details) In Thousands, unless otherwise specified					42 Months Ended			42 Months Ended										42 Months Ended						47 Months Ended
	Sep. 30, 2013	Sep. 30, 2013 Third Amended & Restated Credit Agreement [Member] USD ($)	Sep. 30, 2013 Third Amended & Restated Credit Agreement [Member] CAD	Mar. 31, 2013 Third Amended & Restated Credit Agreement [Member] USD ($)	Apr. 01, 2015 Canadian Prime Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Canadian 30 Day BA Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 30, 2013 Canadian 30 Day BA Rate [Member] Third Amended & Restated Credit Agreement [Member]	Apr. 01, 2015 US Base Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 LIBOR [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 30, 2013 Component 1 [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Mar. 31, 2013 Component 1 [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Sep. 30, 2013 Component 2 [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Mar. 31, 2013 Component 2 [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Sep. 30, 2013 Minimum [Member] Third Amended & Restated Credit Agreement [Member]	Sep. 30, 2013 Maximum [Member] Third Amended & Restated Credit Agreement [Member]	Sep. 28, 2011 Lower Lakes Transportation Company [Member] Revolving Credit Facility [Member] Component 2 [Member] Second Amended and Restated Credit Agreement [Member] USD ($)	Aug. 30, 2012 Lower Lakes Transportation Company [Member] Revolving Credit Facility [Member] Component 2 [Member] Third Amended & Restated Credit Agreement [Member] USD ($)	Apr. 01, 2015 Grand River Navigation Company, Inc. [Member] US Base Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Grand River Navigation Company, Inc. [Member] LIBOR [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian Prime Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian 30 Day BA Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Revolving Credit Facility [Member] Component 1 [Member] Second Amended and Restated Credit Agreement [Member] CAD	Aug. 30, 2012 Lower Lakes Towing Ltd. [Member] Revolving Credit Facility [Member] Component 1 [Member] Third Amended & Restated Credit Agreement [Member] CAD	Aug. 01, 2016 Loans Payable [Member] US Term Loan [Member] Grand River Navigation Company, Inc. [Member] US Base Rate [Member] Third Amended & Restated Credit Agreement [Member]	Aug. 01, 2016 Loans Payable [Member] US Term Loan [Member] Grand River Navigation Company, Inc. [Member] LIBOR [Member] Third Amended & Restated Credit Agreement [Member]	Aug. 01, 2016 Loans Payable [Member] Canadian Term Loan [Member] Lower Lakes Towing Ltd. [Member] Canadian Prime Rate [Member] Third Amended & Restated Credit Agreement [Member]	Aug. 01, 2016 Loans Payable [Member] Canadian Term Loan [Member] Lower Lakes Towing Ltd. [Member] Canadian 30 Day BA Rate [Member] Third Amended & Restated Credit Agreement [Member]
Line of Credit Facility [Line Items]
Authorized amount of line of credit																$ 13,500	$ 13,500					13,500	13,500
Amount of line of credit being utilized										6,500	2,925	5,500	3,118
Amount of letters of credit maintained			100	100
Basis spread on variable rate					3.50%	4.50%		3.50%	4.50%									3.50%	4.50%	3.50%	4.50%			3.75%	4.75%	3.75%	4.75%
Measurement period of variable rate							30 days
Collateral, percent of receivables eligible for collateral if not aged over 90 days		85.00%	85.00%
Collateral, minimum age of receivables eligible for collateral	90 days
Collateral, receivables eligible for collateral if not aged over 90 days, percent limitation per one customer														20.00%	30.00%
Credit availability		$ 4,412

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OTHER ASSETS (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Other Assets [Abstract]
Customer contract costs	$ 955	$ 1,156
Prepaid expenses and other assets	8,309	7,736
Total	9,264	8,892
Current portion	8,351	7,842
Other long term assets	$ 913	$ 1,050

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SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended		6 Months Ended
	Sep. 30, 2013	Mar. 31, 2013 Interest rate swap contracts [Member] interest_rate_swap_contracts	Sep. 30, 2013 Vehicles [Member]	Sep. 30, 2013 Furniture and equipment [Member]	Sep. 30, 2013 Computer equipment [Member]	Sep. 30, 2013 Communication equipment [Member]	Sep. 30, 2013 Trademarks and trade names [Member]	Sep. 30, 2013 Customer relationships and contracts [Member]	Sep. 30, 2013 Minimum [Member]	Sep. 30, 2013 Minimum [Member] Vessels [Member]	Sep. 30, 2013 Minimum [Member] Leasehold improvements [Member]	Sep. 30, 2013 Maximum [Member]	Sep. 30, 2013 Maximum [Member] Vessels [Member]	Sep. 30, 2013 Maximum [Member] Leasehold improvements [Member]
Significant Accounting Policies [Line Items]
Age of receivables									30 days			60 days
Freight surcharges as a percent of revenue												5.00%
Amortization period							10 years	15 years
Useful life										5 years	7 years		25 years	11 years
Depreciation rate			20.00%	20.00%	45.00%	20.00%
Amortization period of drydock costs	60 months
Number of interest rate swap contracts		2

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Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2013	Mar. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issuable	17,925,129	17,860,266
Common stock, shares outstanding	17,925,129	17,860,266
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	300,000	300,000
Preferred stock, shares outstanding	300,000	300,000

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PROPERTY AND EQUIPMENT

6 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

Property and equipment are comprised of the following:

	September 30, 2013		March 31, 2013
Cost
Vessels	$	263,919	$	264,685
Leasehold improvements	3,779		3,779
Furniture and equipment	500		494
Vehicles	21		21
Computer, communication equipment and purchased software	2,945		2,912
	$	271,164	$	271,891
Accumulated depreciation
Vessels	$	57,152	$	49,404
Leasehold improvements	1,727		1,496
Furniture and equipment	229		200
Vehicles	14		13
Computer, communication equipment  and purchased software	1,814		1,694
	60,936		52,807
	$	210,228	$	219,084

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Consolidated Statements of Comprehensive Income (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Comprehensive Income [Abstract]
NET (LOSS) INCOME BEFORE PREFERRED STOCK DIVIDENDS	$ 1,215	$ 2,882	$ 3,793	$ 5,977
Foreign currency translation adjustment	871	1,512	(708)	451
COMPREHENSIVE (LOSS) INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 2,086	$ 4,394	$ 3,085	$ 6,428

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LONG-TERM DEBT (Debt Maturities Due) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Long-term Debt, Rolling Maturity [Abstract]
September 30, 2014	$ 3,612
September 30, 2015	7,224
September 30, 2016	130,033
Long-term debt	$ 140,869	$ 143,390

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 3,040	$ 848
Accounts receivable, net (Note 4)	18,728	5,486
Income tax receivable	113	113
Loan to Employees	250	250
Prepaid expenses and other current assets (Notes 5 and 8)	8,351	7,842
Deferred income taxes (Note 6)	262	262
Total current assets	30,744	14,801
PROPERTY AND EQUIPMENT, NET (Note 7)	210,228	219,084
OTHER ASSETS (Note 8)	913	1,050
DEFERRED INCOME TAXES (Note 6)	0	2,203
DEFERRED DRYDOCK COSTS, NET (Note 9)	10,476	10,895
INTANGIBLE ASSETS, NET (Note 10)	11,596	12,612
GOODWILL (Note 10)	10,193	10,193
Total assets	274,150	270,838
CURRENT LIABILITIES
Bank indebtedness (Note 12)	11,809	5,997
Accounts payable	14,761	21,697
Accrued liabilities (Note 13)	20,988	21,316
Deferred income taxes (Note 6)	0	173
Current portion of deferred payment liability (Note 11)	431	431
Current portion of long-term debt (Note 14)	3,612	3,630
Total current liabilities	51,601	53,244
LONG-TERM PORTION OF DEFERRED PAYMENT LIABILITY (Note 11)	1,404	1,631
LONG-TERM DEBT (Note 14)	137,257	139,760
OTHER LIABILITIES	253	253
DEFERRED INCOME TAXES (Note 6)	9,511	3,532
Total liabilities	200,026	198,420
COMMITMENTS AND CONTINGENCIES (Notes 15 and 16)
STOCKHOLDERS' EQUITY
Preferred stock, $.0001 par value, Authorized 1,000,000 shares, Issued and outstanding 300,000 shares (Note 17)	14,900	14,900
Common stock, $.0001 par value Authorized 50,000,000 shares, Issuable and outstanding 17,925,129 shares (Note 17)	1	1
Additional paid-in capital	89,431	89,077
Accumulated deficit	(30,281)	(32,341)
Accumulated other comprehensive income	73	781
Total stockholders' equity	74,124	72,418
Total liabilities and stockholders' equity	$ 274,150	$ 270,838

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DEFERRED DRYDOCK COSTS (Balance Sheet Details) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013	Mar. 31, 2012
Deferred Drydock Costs [Abstract]
Deferred expenditures	$ 16,632	$ 19,477
Accumulated amortization	(6,156)	(8,582)
Deferred drydock costs, net	$ 10,476	$ 10,895	$ 9,879

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EARNINGS PER SHARE

6 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The Company had a total of 17,925,129 shares of common stock issued and outstanding as of September 30, 2013, out of an authorized total of 50,000,000 shares. The fully diluted calculation utilizes a total of 20,338,879 shares for the three month period ended September 30, 2013, 20,271,204 for three month period ended September 30, 2012, 20,317,211 shares for the six month period ended September 30, 2013 and 20,282,747 for the six month period ended September 30, 2012. Since the calculation for three and six month periods ended September 30, 2013 and September 30, 2012 are anti-dilutive, the basic and fully diluted weighted average shares outstanding are 17,919,524 and 17,724,389 for the three month periods ended September 30, 2013 and September 30, 2012, respectively, and 17,897,856 and 17,722,242 for six month periods ended September 30, 2013 and September 30, 2012, respectively. The convertible preferred shares convert to an aggregate of 2,419,355 shares of the common stock based on a conversion price of $6.20.

	Three months ended September 30, 2013			Three months ended September 30, 2012			Six months ended September 30, 2013			Six months ended September 30, 2012
Numerator:
Net income before preferred dividends	$	1,215		$	2,882		$	3,793		$	5,977
Preferred stock dividends	(879		)	(782		)	(1,733		)	(1,540		)
Net income applicable to common stockholders	$	336		$	2,100		$	2,060		$	4,437
Denominator:
Weighted average common shares for basic EPS	17,919,524			17,724,389			17,897,856			17,722,242
Effect of dilutive securities:
Average price during period	5.08			7.71			5.34			8.02
Long term incentive stock option plan	479,785			479,785			479,785			479,785
Average exercise price of stock options	5.66			5.66			5.66			5.66
Shares that could be acquired with the proceeds of options	—			352,325			—			338,635
Dilutive shares due to options	—			127,460			—			141,150
Weighted average convertible preferred shares at $6.20	2,419,355			2,419,355			2,419,355			2,419,355
Weighted average common shares for diluted EPS	17,919,524			17,724,389			17,897,856			17,722,242
Basic EPS	$	0.02		$	0.12		$	0.12		$	0.25
Diluted EPS	$	0.02		$	0.12		$	0.12		$	0.25

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CONTINGENCIES

6 Months Ended

Sep. 30, 2013

Loss Contingency [Abstract]

CONTINGENCIES

CONTINGENCIES

The Company is not involved in any legal proceedings which are expected to have a material effect on its business, financial position, results of operations or liquidity, nor is the Company aware of any proceedings that are pending or threatened which may have a material effect on the Company’s business, financial position, results of operations or liquidity.  From time to time, Lower Lakes may be subject to legal proceedings and claims in the ordinary course of business involving principally commercial charter party disputes, and claims for alleged property damages, personal injuries and other matters. Those claims, even if lacking merit, could result in the expenditure of significant financial and managerial resources.  It is expected that larger claims would be covered by insurance, subject to customary deductibles, if they involve liabilities that may arise from allision, other marine casualty, damage to cargoes, oil pollution, death or personal injuries to crew. The Company evaluates the need for loss accruals under the requirements of ASC 450 – Contingencies.  The Company records an estimated loss for any claim, lawsuit, investigation or proceeding when it is probable that a liability has been incurred and the amount of the loss can reasonably be estimated. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate, then the Company records the minimum amount in the range as the loss accrual. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. As of September 30, 2013 an accrual of $363 ($490 as of March 31, 2013) was recorded for various claims.  Management does not anticipate material variations in actual losses from the amounts accrued related to these claims.

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EARNINGS PER SHARE (Tables)

6 Months Ended

Sep. 30, 2013

Earnings Per Share [Abstract]

Schedule of earnings per share, basic and diluted

	Three months ended September 30, 2013			Three months ended September 30, 2012			Six months ended September 30, 2013			Six months ended September 30, 2012
Numerator:
Net income before preferred dividends	$	1,215		$	2,882		$	3,793		$	5,977
Preferred stock dividends	(879		)	(782		)	(1,733		)	(1,540		)
Net income applicable to common stockholders	$	336		$	2,100		$	2,060		$	4,437
Denominator:
Weighted average common shares for basic EPS	17,919,524			17,724,389			17,897,856			17,722,242
Effect of dilutive securities:
Average price during period	5.08			7.71			5.34			8.02
Long term incentive stock option plan	479,785			479,785			479,785			479,785
Average exercise price of stock options	5.66			5.66			5.66			5.66
Shares that could be acquired with the proceeds of options	—			352,325			—			338,635
Dilutive shares due to options	—			127,460			—			141,150
Weighted average convertible preferred shares at $6.20	2,419,355			2,419,355			2,419,355			2,419,355
Weighted average common shares for diluted EPS	17,919,524			17,724,389			17,897,856			17,722,242
Basic EPS	$	0.02		$	0.12		$	0.12		$	0.25
Diluted EPS	$	0.02		$	0.12		$	0.12		$	0.25

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VESSEL ACQUISITIONS (Details) In Thousands, except Share data, unless otherwise specified	Feb. 11, 2011 Black Creek Holdings, Inc. [Member] The Vessels [Member] USD ($) Monthly_Installments Vessels	Jul. 21, 2011 Lower Lakes Towing Ltd. [Member] MANITOBA [Member] CAD	Oct. 14, 2011 Lower Lakes Towing Ltd. [Member] TECUMSEH [Member] USD ($)	Dec. 01, 2011 Grand River Navigation Company, Inc. [Member] ASHTABULA [Member] USD ($)	Dec. 01, 2011 Grand River Navigation Company, Inc. [Member] DEFIANCE [Member] USD ($)
Schedule of Significant Acquisitions and Disposals [Line Items]
Number of vessels purchased	2
Cash paid at closing	$ 35,500
Cash to be paid in installments	3,600
Number of payment installments	72
Monthly payment installment amount	50
Promissory note given as consideration	1,500
Number of common shares given as consideration	1,305,963
Fair Values of Assets Acquired [Abstract]
Current assets	94
Property and equipment	45,000
Other identifiable intangible assets	1,836
Total	46,930
Promissory note interest rate	6.00%
Vessel purchase price		2,667	$ 5,250	$ 11,954	$ 7,796

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SEGMENT INFORMATION (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Segment information:
Revenue	$ 50,541	$ 50,571	$ 98,942	$ 100,183
Property and equipment, net	210,228		210,228		219,084
Intangible assets	11,596		11,596		12,612
Goodwill	10,193		10,193		10,193
Assets	274,150		274,150		270,838
CANADA
Segment information:
Revenue	28,522	30,538	56,966	62,311
Property and equipment, net	96,048		96,048		100,887
Intangible assets	7,417		7,417		8,081
Goodwill	8,284		8,284		8,284
Assets	135,244		135,244		134,230
UNITED STATES
Segment information:
Revenue	22,019	20,033	41,976	37,872
Property and equipment, net	114,180		114,180		118,197
Intangible assets	4,179		4,179		4,531
Goodwill	1,909		1,909		1,909
Assets	$ 138,906		$ 138,906		$ 136,608

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LONG-TERM DEBT (Tables)

6 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

		September 30, 2013		March 31, 2013
a)	Canadian term loan bearing interest at Canadian Prime rate plus 3.75% (3.75% at March 31, 2013) or Canadian BA rate plus 4.75% (4.75% at March 31, 2013) at the Company’s option.  The loan is repayable until August 1, 2016 with quarterly payments of CDN $331 commencing December 1, 2012, increasing to CDN $662 commencing December 1, 2014 and the balance due August 1, 2016.	$	50,135	$	51,493
b)	Grand River US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $401 commencing December 1, 2012, increasing to US $802 commencing December 1, 2014 and the balance due on August 1, 2016. Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	62,524		63,325
c)	Black Creek US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $181 commencing December 1, 2012, increasing to US $362 commencing December 1, 2014, and the balance due August 1, 2016.   Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	28,210		28,572
		$	140,869	$	143,390
	Less amounts due within 12 months	3,612		3,630
		$	137,257	$	139,760

Schedule of principal payments due

Principal payments are due as follows:

Twelve month period ending:

September 30, 2014	$	3,612
September 30, 2015	7,224
September 30, 2016	130,033
	$	140,869

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DEFERRED DRYDOCK COSTS (Tables)

6 Months Ended

Sep. 30, 2013

Deferred Drydock Costs [Abstract]

Schedule of deferred drydock costs

Deferred drydock costs are comprised of the following:

	September 30, 2013			March 31, 2013
Drydock expenditures	$	16,632		$	19,477
Accumulated amortization	(6,156		)	(8,582		)
	$	10,476		$	10,895

Summary of changes in deferred drydock costs

The following table shows periodic deferrals of drydock costs and amortization.

Balance as of March 31, 2012	$	9,879
Drydock costs accrued	4,656
Amortization of drydock costs	(3,497		)
Foreign currency translation adjustment	(143		)
Balance as of March 31, 2013	$	10,895
Drydock costs accrued	1,338
Amortization of drydock costs	(1,667		)
Foreign currency translation adjustment	(90		)
Balance as of September 30, 2013	$	10,476

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INTANGIBLE ASSETS AND GOODWILL (Tables)

6 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets and goodwill

Intangibles are comprised of the following:

	September 30, 2013		March 31, 2013
Intangible assets:
Deferred financing costs	$	2,119	$	2,120
Trademarks and trade names	1,000		1,010
Customer relationships and contracts	17,748		17,926
Total identifiable intangibles	$	20,867	$	21,056
Accumulated amortization:
Deferred financing costs	$	579	$	309
Trademarks and trade names	758		715
Customer relationships and contracts	7,934		7,420
Total accumulated amortization	9,271		8,444
Net intangible assets	$	11,596	$	12,612
Goodwill	$	10,193	$	10,193

Schedule of expected amortization expense

Intangible asset amortization over the next five years is estimated as follows:

Twelve month period ending:

September 30, 2014	$	1,824
September 30, 2015	1,824
September 30, 2016	1,684
September 30, 2017	1,183
September 30, 2018	1,183
	$	7,698

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INCOME TAXES

6 Months Ended

Sep. 30, 2013

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company's effective tax rate was a deferred tax expense of 68.3% for the six month period ended September 30, 2013 compared to a deferred tax expense of 38.8% for the six month period ended September 30, 2012. The increase in effective tax rate was primarily due to changes in permanent differences, discrete items and the magnitude of the forecasted full year permanent differences compared to the forecasted full year income before income taxes for the year ending March 31, 2014.

The effective tax rate for the six month period ended September 30, 2013 was higher than the statutory tax rate due to the comparative magnitude of the domestic permanent differences, which primarily include imputed interest, partially offset by foreign earnings being subject to a lower statutory tax rate.

The Company had no unrecognized tax benefits as of September 30, 2013. The Company did not incur any income tax related interest expense or penalties related to uncertain tax positions during each of the six month periods ended September 30, 2013 and September 30, 2012.

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STOCKHOLDERS' EQUITY (Details) (USD $) In Thousands, except Share data, unless otherwise specified	0 Months Ended				3 Months Ended		6 Months Ended			6 Months Ended
	Sep. 21, 2011	Feb. 11, 2011	Sep. 30, 2013	Mar. 31, 2013	Sep. 30, 2013 Series A Preferred Stock [Member]	Sep. 30, 2012 Series A Preferred Stock [Member]	Sep. 30, 2013 Series A Preferred Stock [Member] D	Sep. 30, 2012 Series A Preferred Stock [Member]	Mar. 31, 2013 Series A Preferred Stock [Member]	Sep. 30, 2013 Maximum [Member] Series A Preferred Stock [Member]
Class of Stock [Line Items]
Number of shares offered	2,800,000
Sale of stock, price per share	$ 6.00
Proceeds from the offering, net of underwriter’s commissions and expenses	$ 15,525
Shares issued of the Company’s common stock to Buckeye		1,305,963
Share price, average of high and low price		$ 5.175
Preferred stock, shares authorized			1,000,000	1,000,000	1,000,000		1,000,000
Cash dividend annual rate							7.75%
Price per share basis for dividend							$ 50
Dividend rate subject to percentage increase every six months							0.50%
Potential dividend rate, maximum										12.00%
Conversion price per share					$ 6.20	$ 6.20	$ 6.20	$ 6.20
Price per share basis for conversion rate							$ 50
Conversion option rate, shares							8.065
Conversion option determination, number of trading days price per share exceeds $8.50							20
Conversion option determination, number of trading days cutoff period							30
Conversion option determination, agreed upon price per common share							$ 8.50
Preferred stock dividends			$ 15,189	$ 13,456
Effective interest rate of preferred dividends					12.00%		12.00%		12.00%

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Cash and cash equivalents

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents.

Accounts receivable and concentration of credit risk

Accounts receivable and concentration of credit risk

The majority of the Company’s accounts receivable are amounts due from customers and other accounts receivable, including insurance and Harmonized Sales Tax refunds.  The majority of accounts receivable are due within 30 to 60 days and are stated at amounts due from customers net of an allowance for doubtful accounts. The Company extends credit to its customers based upon its assessment of their creditworthiness and past payment history. Accounts outstanding longer than the contractual payment terms are considered past due. The Company has historically had no significant bad debts. Interest is not accrued on outstanding receivables.

Revenue and operating expenses recognition

Revenue and operating expenses recognition

The Company generates revenues from freight billings under contracts of affreightment (voyage charters) generally on a rate per ton basis based on origin-destination and cargo carried. Voyage revenue is recognized ratably over the duration of a voyage based on the relative transit time in each reporting period when the following conditions are met: the Company has a signed contract of affreightment, the contract price is fixed or determinable and collection is reasonably assured.  Included in freight billings are other fees such as fuel surcharges and other freight surcharges, which represent pass-through charges to customers for toll fees, lockage fees and ice breaking fees paid to other parties.  Fuel surcharges are recognized ratably over the duration of the voyage, while freight surcharges are recognized when the associated costs are incurred. Freight surcharges are less than 5% of total revenue.

Marine operating expenses such as crewing costs, fuel, tugs and insurance are recognized as incurred or consumed and thereby are recognized ratably in each reporting period. Repairs and maintenance and certain other insignificant costs are recognized as incurred.

The Company subcontracts excess customer demand to other freight providers.  Service to customers under such arrangements is transparent to the customer and no additional services are provided to customers.  Consequently, revenues recognized for customers serviced by freight subcontractors are recognized on the same basis as described above.  Costs for subcontracted freight providers, presented as “outside voyage charter fees” in the consolidated statements of operations, are recognized as incurred and therefore are recognized ratably over the voyage.

The Company accounts for sales taxes imposed on its services on a net basis in the consolidated statements of operations.

In addition, all revenues are presented on a gross basis.

Vessel acquisitions

Vessel acquisitions

Vessels are stated at cost, which consists of the purchase price and any material expenses incurred upon acquisition, such as initial repairs, improvements, delivery expenses and other expenditures to prepare the vessel for its initial voyage. Subsequent expenditures for conversions and major improvements are also capitalized when they appreciably extend the life, increase the earnings capacity or improve the efficiency or safety of the vessels. Significant financing costs incurred during the construction period of the vessels are also capitalized and included in the vessels' cost.

Fuel and lubricant inventories

Fuel and lubricant inventories

Raw materials, fuel and certain operating supplies are accounted for on a first-in, first-out cost method (based on monthly averages). Raw materials and fuel are stated at the lower of actual cost (first-in, first-out method) or market. Operating supplies are stated at actual cost or average cost.

Intangible assets and goodwill

Intangible assets and goodwill

Intangible assets consist primarily of goodwill, deferred financing costs, trademarks, trade names and customer relationships and contracts. Intangible assets are amortized as follows:

Trademarks and trade names	10 years straight-line
Customer relationships and contracts	15 years straight-line

Deferred financing costs are amortized on a straight-line basis over the term of the related debt, which approximates the effective interest method.

Property and equipment

Property and equipment

Property and equipment are recorded at cost.  Depreciation methods for property and equipment are as follows:

Vessels	5 - 25 years straight-line
Leasehold improvements	7 - 11 years straight-line
Vehicles	20% declining-balance
Furniture and equipment	20% declining-balance
Computer equipment	45% declining-balance
Communication equipment	20% declining-balance

Impairment of fixed assets

Impairment of fixed assets

Fixed assets (e.g. property and equipment) and finite-lived intangible assets (e.g. customer lists) are tested for impairment upon the occurrence of a triggering event that indicates the carrying value of such an asset or asset group (e.g. tugs and barges), might be no longer recoverable. Examples of such triggering events include a significant disposal of a portion of such assets, an adverse change in the market involving the business employing the related asset(s), a significant decrease in the benefits realized from an acquired business, difficulties or delays in integrating the business, and a significant change in the operations of an acquired business.

Once a triggering event has occurred, the recoverability test employed is based on whether the intent is to hold the asset(s) for continued use or to hold the asset(s) for sale. If the intent is to hold the asset(s) for continued use, the recoverability test involves a comparison of undiscounted cash flows excluding interest expense, against the carrying value of the asset(s) as an initial test. If the carrying value of such asset(s) exceeds the undiscounted cash flow, the asset(s) would be deemed to be impaired. Impairment would then be measured as the difference between the fair value of the fixed or amortizing intangible asset and the carrying value of such asset(s). The Company generally determines fair value by using the discounted cash flow method. If the intent is to hold the asset(s) for sale and certain other criteria are met (i.e. the asset(s) can be disposed of currently, appropriate levels of authority have approved the sale and there is an actively pursuing buyer), the impairment test is a comparison of the asset’s carrying value to its fair value less costs to sell. To the extent that the carrying value is greater than the asset’s fair value less costs to sell, an impairment loss is recognized for the difference. The Company has determined that there were no adverse changes in our markets or other triggering events that could affect the valuation of our assets during the six month period ended September 30, 2013.

Impairment of goodwill

Impairment of goodwill

The Company annually reviews the carrying value of goodwill to determine whether impairment may exist. In accordance with Accounting Standards Codification (“ASC”) 350 “Intangibles-Goodwill and Other” and Accounting Standards Update (“ASU”) 2011-08 Intangibles—Goodwill and Other (Topic 350) - Testing Goodwill for Impairment requires that goodwill and certain intangible assets be assessed annually for impairment using fair value measurement techniques. Specifically, goodwill impairment is determined using a three-step process. The first step of the goodwill impairment test is to perform a qualitative assessment before calculating the fair value of the reporting unit when testing goodwill for impairment. If the fair value of the reporting unit is determined, based on qualitative factors, to be more likely than not less than the carrying amount of the reporting unit, then entities are required to perform the two-step goodwill impairment test. The second step of the goodwill impairment test is used to identify potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The estimates of fair value of the Company’s two reporting units, which are the Company’s Canadian and US operations (excluding the parent), are determined using various valuation techniques with the primary techniques being a discounted cash flow analysis and peer analysis. A discounted cash flow analysis requires various judgmental assumptions, including assumptions about future cash flows, growth rates, and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s forecast and long-term estimates. Discount rate assumptions are based on an assessment of the risk inherent in the respective reporting units. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The third step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit.  As of March 31, 2013, the Company conducted the qualitative assessment and determined that the fair value of its two reporting units exceeded their carrying amounts and the remaining two-step impairment testing was therefore not necessary.  The Company has determined that there were no adverse changes in our markets or other triggering events that indicated that it is more likely than not that the fair value of our reporting units is less than the carrying value of our reporting units during the six month period ended September 30, 2013.

Drydock costs

Drydock costs

Drydock costs incurred during statutory Canadian and United States certification processes are capitalized and amortized on a straight-line basis over the benefit period, which is generally 60 months. Drydock costs include costs of work performed by third party shipyards and subcontractors and other direct expenses to complete the mandatory certification process.

Repairs and maintenance

Repairs and maintenance

The Company’s vessels require repairs and maintenance each year to ensure the fleet is operating efficiently during the shipping season.  The majority of repairs and maintenance are completed in January, February, and March of each year when the vessels are inactive.  The Company expenses such routine repairs and maintenance costs.  Significant repairs to the Company’s vessels (whether owned or available to the Company under a time charter), such as major engine overhauls and major hull steel repairs, are capitalized and amortized over the remaining useful life of the upgrade or asset repaired, or the remaining lease term.

Income taxes

Income taxes

The Company accounts for income taxes in accordance with ASC 740 “Income Taxes”, which requires the determination of deferred tax assets and liabilities based on the differences between the financial statement and income tax bases of tax assets and liabilities, using enacted tax rates in effect for the year in which the differences are expected to reverse.  A valuation allowance is recognized, if necessary, to measure tax benefits to the extent that, based on available evidence, it is more likely than not that they will be realized.

The Company classifies interest expense related to income tax liabilities, when applicable, as part of the interest expense in its consolidated statements of operations rather than income tax expense.  To date, the Company has not incurred material interest expenses or penalties relating to assessed taxation amounts.

There have been no recent examinations by the U.S. taxing authorities. Lower Lakes was examined by the Canadian taxing authority for the tax years 2009 and 2010 and such examination is now complete.  This audit did not result in any material adjustments for such periods. The Company's primary U.S. state income tax jurisdictions are Illinois, Indiana, Michigan, Minnesota, Pennsylvania, Wisconsin, Ohio and New York and its only international jurisdictions are Canada and its province of Ontario. The following table summarizes the open fiscal tax years for each major jurisdiction:

Jurisdiction	Open Tax Years
Federal (USA)	2009 – 2013
Various states	2009 – 2013
Federal (Canada)	2008 – 2013
Ontario	2008 – 2013

Foreign currency translation

Foreign currency translation

The Company uses the U.S. Dollar as its reporting currency.  The functional currency of the Company's Canadian subsidiaries is the Canadian Dollar.  The functional currency of the Company’s U.S. subsidiaries is the U.S. Dollar. Assets and liabilities denominated in foreign currencies are translated into U.S. Dollars at the rate of exchange at the balance sheet date, while revenue and expenses are translated at the average exchange rates prevailing during the respective month.  Components of stockholders’ equity are translated at historical exchange rates.  Exchange gains and losses resulting from translation are reflected in accumulated other comprehensive income or loss.

Advertising costs

Advertising costs

The Company expenses all advertising costs as incurred. These costs are included in general and administrative costs and were insignificant during the periods presented.

Use of estimates

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates used in the preparation of these financial statements include the assumptions used in determining the useful lives of long-lived assets, the assumptions used in determining whether assets are impaired, the assumptions used in determining the valuation allowance for deferred income tax assets and the assumptions used in stock based compensation awards. Actual results could differ from those estimates.

Stock-based compensation

Stock-based compensation

The Company recognizes compensation expense for all newly granted awards and awards modified, repurchased or cancelled based on fair value at the date of grant.

Fair value of financial instruments

Financial instruments

The Company accounted for its two expired interest rate swap contracts on its term debt utilizing ASC 815 “Derivatives and Hedging”. All changes in the fair value of such swap contracts were recorded in earnings. The fair value of settlement costs, when the contracts were in place, were included in current liabilities on the consolidated balance sheets. No liability remains. Disclosure requirements of ASC 815 are disclosed in Note 21.

Fair value of financial instruments

ASC 820 “Fair Value Measurements and Disclosures” ("ASC 820") defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and establishes a hierarchy that categorizes and prioritizes the inputs to be used to estimate fair value. The three levels of inputs used are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable for the asset or liability, either directly or indirectly, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The disclosure requirements of ASC 820 related to the Company’s financial assets and liabilities are presented in Note 21.

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SEGMENT INFORMATION (Tables)

6 Months Ended

Sep. 30, 2013

Segment Reporting [Abstract]

Revenue and long-lived assets by geographical segment

Information about geographic operations is as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Revenue by country:
Canada	$	28,522	$	30,538	$	56,966	$	62,311
United States	22,019		20,033		41,976		37,872
	$	50,541	$	50,571	$	98,942	$	100,183

Revenues from external customers are allocated based on the country of the legal entity of the Company in which the revenues were recognized.

	September 30, 2013		March 31, 2013
Property and equipment by country:
Canada	$	96,048	$	100,887
United States	114,180		118,197
	$	210,228	$	219,084
Intangible assets by country:
Canada	$	7,417	$	8,081
United States	4,179		4,531
	$	11,596	$	12,612
Goodwill by country:
Canada	$	8,284	$	8,284
United States	1,909		1,909
	$	10,193	$	10,193
Total assets by country:
Canada	$	135,244	$	134,230
United States	138,906		136,608
	$	274,150	$	270,838

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DEFERRED DRYDOCK COSTS

6 Months Ended

Sep. 30, 2013

Deferred Drydock Costs [Abstract]

DEFERRED DRYDOCK COSTS

DEFERRED DRYDOCK COSTS

Deferred drydock costs are comprised of the following:

	September 30, 2013			March 31, 2013
Drydock expenditures	$	16,632		$	19,477
Accumulated amortization	(6,156		)	(8,582		)
	$	10,476		$	10,895

The following table shows periodic deferrals of drydock costs and amortization.

Balance as of March 31, 2012	$	9,879
Drydock costs accrued	4,656
Amortization of drydock costs	(3,497		)
Foreign currency translation adjustment	(143		)
Balance as of March 31, 2013	$	10,895
Drydock costs accrued	1,338
Amortization of drydock costs	(1,667		)
Foreign currency translation adjustment	(90		)
Balance as of September 30, 2013	$	10,476

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PREPAID EXPENSES AND OTHER CURRENT ASSETS

6 Months Ended

Sep. 30, 2013

Prepaid Expense and Other Assets, Current [Abstract]

PREPAID EXPENSES AND OTHER CURRENT ASSETS

PREPAIDEXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets are comprised of the following:

	September 30, 2013		March 31, 2013
Prepaid insurance	$	491	$	334
Fuel and lubricants	5,689		5,063
Deposits and other prepaids	2,171		2,445
	$	8,351	$	7,842

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
NET (LOSS) INCOME BEFORE PREFERRED STOCK DIVIDENDS	$ 3,793	$ 5,977
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization of drydock costs	10,247	8,863
Amortization of intangibles and deferred financing costs	912	1,201
Deferred income taxes	8,168	3,782
Gain on interest rate swap contracts	0	(542)
Loss on extinguishment of debt (Note 14)	0	3,339
Equity compensation	354	435
Deferred drydock costs paid	(3,532)	(3,653)
Changes in operating assets and liabilities:
Accounts receivable	(13,242)	(19,182)
Prepaid expenses and other current assets	(509)	(905)
Accounts payable and accrued liabilities	(2,404)	5,220
Other assets and liabilities	137	375
Income taxes payable (net)	0	(53)
Net Cash Provided by (Used in) Operating Activities, Total	3,924	4,857
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(5,520)	(26,825)
Net Cash Provided by (Used in) Investing Activities, Total	(5,520)	(26,825)
CASH FLOWS FROM FINANCING ACTIVITIES
Deferred payment liability obligation	(227)	(211)
Proceeds from long-term debt	0	15,298
Long-term debt repayment	(1,799)	(2,792)
Debt financing cost	(23)	(2,115)
Proceeds from bank indebtedness	17,414	24,015
Repayment of bank indebtedness	(11,559)	(12,069)
Net Cash Provided by (Used in) Financing Activities, Total	3,806	22,126
EFFECT OF FOREIGN EXCHANGE RATES ON CASH	(18)	(12)
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	2,192	146
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	848	5,563
CASH AND CASH EQUIVALENTS, END OF PERIOD	3,040	5,709
SUPPLEMENTAL CASH FLOW DISCLOSURE
Payments for interest	4,634	4,932
Unpaid purchases of property and equipment	544	3,351
Unpaid purchases of deferred drydock cost	2	74
Payment of income taxes	0	53
Capitalized interest	$ 0	$ 538

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DEFERRED DRYDOCK COSTS (Changes in Deferred Balances) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Deferred Drydock Costs [Roll Forward]
Balance at beginning of period			$ 10,895	$ 9,879	$ 9,879
Drydock costs accrued			1,338		4,656
Amortization of drydock costs	(829)	(873)	(1,667)	(1,752)	(3,497)
Foreign currency translation adjustment			(90)		(143)
Balance at end of period	$ 10,476		$ 10,476		$ 10,895

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PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid insurance	$ 491	$ 334
Fuel and lubricants	5,689	5,063
Deposits and other prepaids	2,171	2,445
Prepaid expenses and other current assets	$ 8,351	$ 7,842

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PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Sep. 30, 2013

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment are comprised of the following:

	September 30, 2013		March 31, 2013
Cost
Vessels	$	263,919	$	264,685
Leasehold improvements	3,779		3,779
Furniture and equipment	500		494
Vehicles	21		21
Computer, communication equipment and purchased software	2,945		2,912
	$	271,164	$	271,891
Accumulated depreciation
Vessels	$	57,152	$	49,404
Leasehold improvements	1,727		1,496
Furniture and equipment	229		200
Vehicles	14		13
Computer, communication equipment  and purchased software	1,814		1,694
	60,936		52,807
	$	210,228	$	219,084

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FINANCIAL INSTRUMENTS (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended				3 Months Ended		6 Months Ended
	Dec. 31, 2012 Derivatives not designated as hedging instrument [Member] Interest Rate Cap [Member]	Dec. 12, 2012 Derivatives not designated as hedging instrument [Member] Interest Rate Cap [Member] interest_rate_swap_contracts	Mar. 31, 2013 Interest rate swap contracts [Member] interest_rate_swap_contracts	Mar. 31, 2013 Interest rate swap contracts [Member] Derivatives not designated as hedging instrument [Member] interest_rate_swap_contracts	Sep. 30, 2013 Interest rate swap contracts [Member] Derivatives not designated as hedging instrument [Member] Other (income) and expenses [Member]	Sep. 30, 2012 Interest rate swap contracts [Member] Derivatives not designated as hedging instrument [Member] Other (income) and expenses [Member]	Sep. 30, 2013 Interest rate swap contracts [Member] Derivatives not designated as hedging instrument [Member] Other (income) and expenses [Member]	Sep. 30, 2012 Interest rate swap contracts [Member] Derivatives not designated as hedging instrument [Member] Other (income) and expenses [Member]	Dec. 12, 2012 UNITED STATES Derivatives not designated as hedging instrument [Member] Interest Rate Cap [Member]	Dec. 12, 2012 CANADA Derivatives not designated as hedging instrument [Member] Interest Rate Cap [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net					$ 0	$ (272)	$ 0	$ (542)
Number of interest rate swap contracts			2	2
Fixed interest rate									2.50%	3.00%
Number of contracts entered into		2
Percent of outstanding term debt covered	50.00%

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LONG-TERM DEBT (Additional Information) (Details)		42 Months Ended							42 Months Ended				42 Months Ended				39 Months Ended		42 Months Ended					0 Months Ended	33 Months Ended	28 Months Ended		36 Months Ended
	Dec. 01, 2011 Second Amended and Restated Credit Agreement [Member] Seasonal Overadvance Facility [Member] Component ii [Member] USD ($)	Apr. 01, 2015 Canadian Prime Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Canadian BA Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 LIBOR [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 US Base Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Second Amended and Restated Credit Agreement [Member] Revolving Credit Facility [Member] Component i [Member] CAD	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Second Amended and Restated Credit Agreement [Member] Seasonal Overadvance Facility [Member] Component ii [Member] CAD	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Second Amended and Restated Credit Agreement [Member] Swing Line Facility [Member] Component i [Member] CAD	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian Prime Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian BA Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Canadian Term Loan [Member] Second Amended and Restated Credit Agreement [Member] Secured Debt [Member] CAD	Sep. 28, 2011 Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] Second Amended and Restated Credit Agreement [Member] Secured Debt [Member] USD ($)	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] Canadian Prime Rate [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Lower Lakes Towing Ltd. [Member] Canadian engine loan [Member] Canadian BA Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 30, 2013 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member]	Mar. 31, 2013 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member]	Mar. 01, 2015 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian Term Loan [Member] Second Amended and Restated Credit Agreement [Member] CAD	Mar. 01, 2015 Lower Lakes Towing Ltd. [Member] Loans Payable [Member] Canadian engine loan [Member] Second Amended and Restated Credit Agreement [Member] CAD	Apr. 01, 2015 Grand River Navigation Company, Inc. [Member] LIBOR [Member] Second Amended and Restated Credit Agreement [Member]	Apr. 01, 2015 Grand River Navigation Company, Inc. [Member] US Base Rate [Member] Second Amended and Restated Credit Agreement [Member]	Sep. 28, 2011 Grand River Navigation Company, Inc. [Member] US Term Loan [Member] Second Amended and Restated Credit Agreement [Member] Secured Debt [Member] USD ($)	Sep. 30, 2013 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member]	Mar. 31, 2013 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member]	Dec. 01, 2011 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] Second Amended and Restated Credit Agreement [Member] USD ($)	Mar. 01, 2015 Grand River Navigation Company, Inc. [Member] Loans Payable [Member] US Term Loan [Member] Second Amended and Restated Credit Agreement [Member] USD ($)	Dec. 31, 2013 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Feb. 11, 2011 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] USD ($)	Feb. 11, 2014 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] LIBOR [Member]	Feb. 11, 2014 Black Creek Holdings, Inc. [Member] Loans Payable [Member] Black Creek US term loan [Member] US Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage Including Effect of Interest Rate Swap Contracts															6.03%	6.03%						5.01%	5.88%
Additional borrowings																								$ 25,000,000
Basis spread on variable rate		3.50%	4.50%	4.50%	3.50%				3.50%	4.50%			4.00%	5.00%					4.50%	3.50%								4.75%	3.75%
Authorized amount of line of credit	12,000,000					13,500,000	10,000,000	4,000,000
Face amount											56,133,000	6,267,000									17,233,000						31,000,000
Quarterly payment																	936,000	133,000						$ 367,000	$ 704,000	$ 517,000

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BANK INDEBTEDNESS

6 Months Ended

Sep. 30, 2013

Line of Credit Facility [Abstract]

BANK INDEBTEDNESS

BANK INDEBTEDNESS

As discussed in detail in Note 14, on August 30, 2012, Lower Lakes, Lower Lakes Transportation, Grand River and Black Creek, as borrowers, and Rand LL Holdings, Rand Finance, Black Creek Holdings and the Company, as guarantors, entered into a Third Amended and Restated Credit Agreement (the “Third Amended and Restated Credit Agreement”) with General Electric Capital Corporation, as agent and a lender, and certain other lenders, which amends and restates the Second Amended and Restated Credit Agreement (the “Second Amended and Restated Credit Agreement”) entered on September 28, 2011, as the same was amended from time to time. Also, on March 29, 2013, the Company entered into a First Amendment (the “First Amendment”) to the Third Amended and Restated Credit Agreement, which amendment is also discussed in Note 14.

As of September 30, 2013 and March 31, 2013, the Company had authorized operating lines of credit under the Third Amended and Restated Credit Agreement in the amounts of CDN $13,500 and US $13,500, and was utilizing CDN $6,500 as of September 30, 2013 and CDN $2,925 as of March 31, 2013 and US $5,500 as of September 30, 2013 and $3,118 as of March 31, 2013, and maintained letters of credit of CDN $100 as of September 30, 2013 and March 31, 2013.

The Third Amended and Restated Credit Agreement provides that the line of credit bears interest, at the borrowers' option, at Canadian Prime Rate plus 3.75% or Canadian 30 day BA rate plus 4.75% on Canadian Dollar borrowings, and the U.S. Base rate plus 3.75% or LIBOR plus 4.75% on U.S. Dollar borrowings, compared to a Canadian Prime Rate plus 3.5% or Canadian 30 day BA rate plus 4.5% on Canadian Dollar borrowings and a U.S. Base rate plus 3.5% or LIBOR plus 4.5% on U.S. Dollar borrowings through August 30, 2012 under the Second Amended and Restated Credit Agreement, and is subject to the terms and conditions described in Note 14. Available collateral for borrowings and letters of credit are based on eligible accounts receivable, which are limited to 85% of those receivables that are not over 90 days old, not in excess of 20%-30% per customer in each line and certain other standard limitations. As of September 30, 2013, the Company had credit availability of US $4,412 on the combined lines of credit based on eligible receivables and the seasonal overadvance facilities.

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OTHER ASSETS

6 Months Ended

Sep. 30, 2013

Other Assets [Abstract]

OTHER ASSETS

OTHER ASSETS

Other assets includes certain customer contract related expenditures, which are amortized over a five year period.

	September 30, 2013		March 31, 2013
Customer contract costs	$	955	$	1,156
Prepaid expenses and other assets	8,309		7,736
Total	$	9,264	$	8,892
Current portion	8,351		7,842
Other long term assets	$	913	$	1,050

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RELATED PARTY TRANSACTIONS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Related Party Transaction [Line Items]
Rental payments	$ 186	$ 147	$ 356	$ 289

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COMMITMENTS

6 Months Ended

Sep. 30, 2013

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

COMMITMENTS

The Company did not have any leases which met the criteria of a capital lease as of September 30, 2013. Leases which do not qualify as capital leases are classified as operating leases. Operating lease rental and sublease rental payments included in general and administrative expenses are as follows:

	Three months ended September 30, 2013		Three months ended September 30, 2012		Six months ended September 30, 2013		Six months ended September 30, 2012
Operating leases	$	146	$	108	$	277	$	212
Operating sublease	40		39		79		77
	$	186	$	147	$	356	$	289

The Company’s future minimum rental commitments under other operating leases are as follows.

Twelve month period ending:

September 30, 2014	$	492
September 30, 2015	415
September 30, 2016	299
September 30, 2017	241
September 30, 2018	211
Thereafter	578
	$	2,236

The Company is party to a bareboat charter agreement for the McKee Sons barge that expires in December 2018.  The chartering cost included in vessel operating expenses was $254 for the three month period ended September 30, 2013 ($249 for the three month period ended September 30, 2012) and $507 for six month period ended September 30, 2013 ($498 for the six month period ended September 30, 2012). The lease was amended on February 22, 2008 to provide a lease payment deferment in return for leasehold improvements. The lease contains a clause whereby annual payments escalate at the Consumer Price Index, capped at a maximum annual increase of 3%. Total charter commitments for the McKee Sons vessel for the term of the lease before inflation adjustments are set forth below. 

Twelve month period ending:

September 30, 2014	$	760
September 30, 2015	760
September 30, 2016	760
September 30, 2017	760
September 30, 2018	760
Thereafter	253
	$	4,053

As of September 30, 2013, Lower Lakes had signed contractual commitments with several suppliers totaling $124 ($731 as of March 31, 2013) in connection with capital expenditure and drydock projects.

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ACCRUED LIABILITIES

6 Months Ended

Sep. 30, 2013

Payables and Accruals [Abstract]

ACCRUED LIABILITIES

ACCRUED LIABILITIES

Accrued liabilities are comprised of the following:

	September 30, 2013		March 31, 2013
Deferred financing and other transaction costs	$	—	$	26
Payroll compensation and benefits	3,326		1,926
Preferred stock dividends	15,189		13,456
Professional fees	363		385
Interest	414		754
Winter work, deferred drydock expenditures and capital expenditures	14		2,438
Capital and franchise taxes	53		113
Other	1,629		2,218
	$	20,988	$	21,316

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Document and Entity Information (USD $)	6 Months Ended
	Sep. 30, 2013	Nov. 06, 2013	Sep. 30, 2012
Entity Registrant Name	Rand Logistics, Inc.
Entity Central Index Key	0001294250
Trading Symbol	rlog
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--03-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,925,129
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Entity Public Float			$ 106,616,870.91

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LONG-TERM DEBT

6 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

		September 30, 2013		March 31, 2013
a)	Canadian term loan bearing interest at Canadian Prime rate plus 3.75% (3.75% at March 31, 2013) or Canadian BA rate plus 4.75% (4.75% at March 31, 2013) at the Company’s option.  The loan is repayable until August 1, 2016 with quarterly payments of CDN $331 commencing December 1, 2012, increasing to CDN $662 commencing December 1, 2014 and the balance due August 1, 2016.	$	50,135	$	51,493
b)	Grand River US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $401 commencing December 1, 2012, increasing to US $802 commencing December 1, 2014 and the balance due on August 1, 2016. Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	62,524		63,325
c)	Black Creek US term loan bearing interest at LIBOR rate plus 4.75% (4.75% at March 31, 2013) or US base rate plus 3.75% (3.75% at March 31, 2013) at the Company’s option. The loan is repayable until August 1, 2016 with quarterly payments of US $181 commencing December 1, 2012, increasing to US $362 commencing December 1, 2014, and the balance due August 1, 2016.   Such term loan is collateralized by the existing and newly acquired assets of Lower Lakes, Grand River, Lower Lakes Transportation and Black Creek.	28,210		28,572
		$	140,869	$	143,390
	Less amounts due within 12 months	3,612		3,630
		$	137,257	$	139,760

The effective interest rates on the term loans at September 30, 2013, including the effect from the expired interest rate swap contracts, were 6.03% (6.03% at March 31, 2013) on the Canadian term loan, and 5.01% (5.88% at March 31, 2013) on the Grand River US term loan and Black Creek US term loan. The actual interest rates charged without the effect of interest rate swap contracts were 6.03% (6.04% at March 31, 2013) on the Canadian term loan, 5.01% (5.04% at March 31, 2013) on the Grand River US term loan, and 5.01% (5.04% at March 31, 2013) on the Black Creek US term loan.

Principal payments are due as follows:

Twelve month period ending:

September 30, 2014	$	3,612
September 30, 2015	7,224
September 30, 2016	130,033
	$	140,869

14. LONG-TERM DEBT (continued)

On August 30, 2012, Lower Lakes, Lower Lakes Transportation, Grand River and Black Creek, as borrowers, Rand LL Holdings, Rand Finance, Black Creek Holdings and the Company, as guarantors, General Electric Capital Corporation, as agent and Lender, and certain other lenders, entered into the Third Amended and Restated Credit Agreement which (i) amends and restates the Second Amended and Restated Credit Agreement in its entirety, (ii) continues the tranches of loans provided for under the Second Amended and Restated Credit Agreement, (iii) refinances the indebtedness of Black Creek under its existing credit facility and adds Black Creek as a U.S. Borrower, (iv) provides for certain new loans and (v) provides working capital financing, funds for other general corporate purposes and funds for other permitted purposes. The Third Amended and Restated Credit Agreement provides for (i) a revolving credit facility including letters of credit under which Lower Lakes may borrow up to CDN $13,500 with a seasonal overadvance facility of US $12,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Transportation, and a swing line facility of CDN $4,000, subject to limitations, (ii) a revolving credit facility under which Lower Lakes Transportation may borrow up to US $13,500 with a seasonal overadvance facility of US $12,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes, and a swing line facility of US $50, subject to limitations, (iii) the modification and continuation of an existing Canadian dollar denominated term loan facility under which Lower Lakes is obligated to the Lenders in the amount of CDN $52,979 as of the date of the Third Amended and Restated Credit Agreement (“CDN Term Loan”), (iv) the modification and continuation of a US dollar denominated term loan facility under which Grand River is obligated to the Lenders in the amount of $64,127 as of the date of the Third Amended and Restated Credit Agreement (“Grand River Term Loan”) and (v) a US dollar denominated term loan facility under which Black Creek is obligated to Lenders in the amount of $28,934 as of the date of the Third Amended and Restated Credit Agreement (“Black Creek Term Loan”).

Under the Third Amended and Restated Credit Agreement, the revolving credit facilities and swing line loans expire on August 1, 2016. The outstanding principal amount of the CDN Term Loan borrowings is repayable as follows: (i) quarterly payments of CDN $331 commencing December 1, 2012 and ending September 2014, (ii) quarterly payments of CDN $662 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the CDN Term Loan upon the CDN Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Grand River Term Loan borrowings is repayable as follows: (i) quarterly payments of US $401 commencing December 1, 2012 and ending on September 1, 2014, (ii) quarterly payments of US $802 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Grand River Term Loan upon the Grand River Term Loan's maturity on August 1, 2016. The outstanding principal amount of the Black Creek Term Loan borrowings is repayable as follows: (i) quarterly payments of US $181 commencing quarterly December 1, 2012 and ending September 1, 2014, (ii) quarterly payments of US $362 commencing December 1, 2014 and ending June 1, 2016 and (iii) a final payment in the outstanding principal amount of the Black Creek Term Loan upon the Black Creek Term Loan's maturity on August 1, 2016.

Borrowings under the Canadian revolving credit facility, Canadian swing line facility and the CDN Term Loan bear an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum or (ii) the BA Rate (as defined in the Third Amended and Restated Credit Agreement) plus 4.75% per annum. Borrowings under the US revolving credit facility, US swing line facility and the Grand River Term Loan and Black Creek Term Loan bear interest, at the borrowers' option equal to (i) LIBOR (as defined in the Third amended and Restated Credit Agreement) plus 4.75% per annum, or (ii) the US Base Rate (as defined in the Third Amended and Restated Credit Agreement), plus 3.75% per annum. Obligations under the Third Amended and Restated Credit Agreement are secured by (i) a first priority lien and security interest on all of the borrowers' and guarantors' assets, tangible or intangible, real, personal or mixed, existing and newly acquired, (ii) a pledge by Rand LL Holdings of all of the outstanding capital stock of the borrowers other than Black Creek; (iii) a pledge by Black Creek Holdings of most of the outstanding capital stock of Black Creek; and (iv) a pledge by Rand of all of the outstanding capital stock of Rand LL Holdings, Rand Finance and Black Creek Holdings. The indebtedness of each borrower under the Third Amended and Restated Credit Agreement is unconditionally guaranteed by each other borrower and by the guarantors, and such guaranty is secured by a lien on substantially all of the assets of each borrower and each guarantor.

14. LONG-TERM DEBT (continued)

Under the Third Amended and Restated Credit Agreement, the borrowers are required to make mandatory prepayments of principal on term loan borrowings (i) if the outstanding balance of the term loans plus the outstanding balance of the seasonal facilities exceeds the sum of 75% of the fair market value of the vessels owned by the borrowers, less the amount of outstanding liens against the vessels with priority over the lenders' liens, in an amount equal to such excess, (ii) in the event of certain dispositions of assets and insurance proceeds (all subject to certain exceptions), in an amount equal to 100% of the net proceeds received by the borrowers therefrom, and (iii) in an amount equal to 100% of the net proceeds to a borrower from any issuance of a borrower's debt or equity securities.

The Third Amended and Restated Credit Agreement contains certain covenants, including those limiting the guarantors', the borrowers' and their subsidiaries' ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Third Amended and Restated Credit Agreement requires the borrowers to maintain certain financial ratios. Failure of the borrowers or the guarantors to comply with any of these covenants or financial ratios could result in the loans under the Third Amended and Restated Credit Agreement being accelerated.

As a result of the execution of the Third Amended and Restated Credit Agreement discussed above, the Company recognized a loss on extinguishment of debt of $3,339 during the fiscal year ended March 31, 2013, that consisted of the unamortized deferred financing costs in connection with previously existing financing arrangements.

On March 29, 2013, the Company entered into a First Amendment to the Third Amended and Restated Credit Agreement that modified such agreement's Minimum Fixed Charge Coverage Ratio, Minimum EBITDA, Maximum Senior Funded Debt to EBITDA Ratio and Maximum Capital Expenditures covenants and the definitions of EBITDA and Fixed Charge Coverage Ratio. As of September 30, 2013, the Company was in compliance with covenants contained in the Third Amended and Restated Credit Agreement, as amended.

On September 28, 2011, Lower Lakes, Lower Lakes Transportation and Grand River, as borrowers, Rand LL Holdings, Rand Finance and the Company, as guarantors, entered into the Second Amended and Restated Credit Agreement with General Electric Capital Corporation, as agent and a lender, and certain other lenders, which amended and restated the Amended and Restated Credit Agreement, as amended, in its entirety.

The Second Amended and Restated Credit Agreement continued the tranches of loans provided under the Amended and Restated Credit Agreement, and provided working capital financing, funds for other general corporate purposes and funds for other permitted purposes.  The Second Amended and Restated Credit Agreement provided for (i) a revolving credit facility under which Lower Lakes was able to borrow up to CDN $13,500 with a seasonal overadvance facility of US $10,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes Transportation and a swing line facility of CDN $4,000 subject to limitations, (ii) a revolving credit facility under which Lower Lakes Transportation was able to borrow up to US $13,500 with a seasonal over advance facility of US $10,000, less the principal amount outstanding under the seasonal overadvance facility for Lower Lakes and a swing line facility of US $4,000, subject to limitations, (iii) a Canadian dollar denominated term loan facility under which Lower Lakes was obligated to the lenders in the amount of CDN $56,133 as of the date of the Second Amended and Restated Credit Agreement, (iv) the continuation of a US dollar denominated term loan facility under which Grand River was obligated to the lenders in the amount of US $17,233 as of the date of the Second Amended and Restated Credit Agreement, and (v) the continuation of a Canadian Dollar denominated “Engine” term loan facility under which Lower Lakes was obligated to the lenders in the amount of CDN $6,267 as of the date of the Second Amended and Restated Credit Agreement.

14. LONG-TERM DEBT (continued)

Under the Second Amended and Restated Credit Agreement, the revolving credit facilities and swing line loans were to expire on April 1, 2015. The outstanding principal amount of the Canadian term loan borrowings were repayable as follows: (i) quarterly payments of CDN $936 commencing December 1, 2011 and ending March 1, 2015 and (ii) a final payment in the outstanding principal amount of the Canadian term loan payable upon the Canadian term loan facility's maturity on April 1, 2015. The outstanding principal amount of the US term loan borrowings were repayable as follows: (i) quarterly payments of US $367 commencing December 1, 2011 and ending on March 1, 2015 and (ii) a final payment in the outstanding principal amount of the US term loan payable upon the US term loan facility's maturity on April 1, 2015. The outstanding principal amount of the Canadian “Engine” term loan borrowings were repayable as follows: (i) quarterly payments of CDN $133 commencing quarterly December 1, 2011 and ending March 1, 2015 and (ii) a final payment in the outstanding principal amount of the Engine term loan payable upon the Engine term loan facility's maturity on April 1, 2015.

Borrowings under the Canadian revolving credit facility, Canadian swing line facility and the Canadian term loan bore an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Second Amended and Restated Credit Agreement), plus 3.50% per annum or (ii) the BA Rate (as defined in the Second Amended and Restated Credit Agreement) plus 4.50% per annum.  Borrowings under the US revolving credit facility, US swing line facility and the US term loan bore interest, at the borrowers' option equal to (i) LIBOR (as defined in the Second amended and Restated Credit Agreement) plus 4.50% per annum, or (ii) the US Base Rate (as defined in the Second Amended and Restated Credit Agreement), plus 3.50% per annum.  Borrowings under the Canadian “Engine” term loan bore an interest rate per annum, at the borrowers' option, equal to (i) the Canadian Prime Rate (as defined in the Second Amended and Restated Credit Agreement), plus 4.00% per annum or (ii) the BA Rate (as defined in the Amended and Restated Credit Agreement) plus 5.00% per annum. Obligations under the Second Amended and Restated Credit Agreement were secured by (i) a first priority lien and security interest on all of the borrowers' and guarantors' assets, tangible or intangible, real, personal or mixed, existing and newly acquired, (ii) a pledge by Rand LL Holdings of all of the outstanding capital stock of the borrowers and (iii) a pledge by the Company of all of the outstanding capital stock of Rand LL Holdings and Rand Finance. The indebtedness of each borrower under the Second Amended and Restated Credit Agreement was unconditionally guaranteed by each other borrower and by the guarantors, and such guaranty was secured by a lien on substantially all of the assets of each borrower and each guarantor.

On December 1, 2011, Lower Lakes Lower, Lakes Transportation, Grand River, and General Electric Capital Corporation, Inc., as Agent, entered into an amendment to the Second Amended and Restated Credit Agreement (the "Amendment"). The Amendment increased (i) the US Term Loan by US $25,000 (ii) the quarterly payments due under the US Term Loan from US $367 to US $704 beginning with the quarterly payment due in June 2012 and (iii) the seasonal overadvance revolving credit facility to US $12,000 subject to certain limitations. Additionally, the Amendment eliminated the quarterly payments due under the US Term Loan in December 2011 and March 2012. The Amendment also modified the definitions of “Capital Expenditures”, “Cdn. Vessels”, “EBITDA”, “Fleet Mortgage”, “Requisite Lenders”, “Requisite Revolving Lenders” and “US Owned Vessels” and amended the Minimum EBITDA, Maximum Senior Debt to EBITDA Ratio, Maximum Capital Expenditures, Minimum Appraised Value to Term Loan Outstandings and Minimum Liquidity covenants.

The Second Amended and Restated Credit Agreement, as amended, contained certain covenants, including those limiting the guarantors, the borrowers, and their subsidiaries' ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends. In addition, the Second Amended and Restated Credit Agreement required the borrowers to maintain certain financial ratios.

14. LONG-TERM DEBT (continued)

On February 11, 2011, Black Creek, as borrower and Black Creek Holdings, as guarantor, General Electric Capital Corporation, as agent and lender, and certain other lenders, entered into a Credit Agreement (the “Black Creek Credit Agreement”) which (i) financed, in part, the acquisition of the Vessels by Black Creek described in Note 11, and (ii) provided funds for other transaction expenses.  The Black Creek Credit Agreement provided for a US Dollar denominated senior secured term loan under which Black Creek borrowed US $31,000.

The outstanding principal amount of the term loan was repayable as follows: (i) quarterly payments of US $517 commencing September 30, 2011 and ending December 31, 2013 and (ii) a final payment in the outstanding principal amount of the term loan payable upon the term loan maturity on February 11, 2014.

The term loan bore an interest rate per annum, at Black Creek's option, equal to (i) LIBOR (as defined in the Black Creek Credit Agreement) plus 4.75% per annum, or (ii) the US Base Rate (as defined in the Black Creek Credit Agreement), plus 3.75% per annum. Obligations under the Black Creek Credit Agreement were secured by (i) a first priority lien and security interest on all of Black Creek's and Black Creek Holdings' assets, tangible or intangible, real, personal or mixed, existing and newly acquired and (ii) a pledge by Black Creek Holdings of all of the outstanding capital stock of Black Creek.  The indebtedness of Black Creek under the Black Creek Credit Agreement was unconditionally guaranteed by the guarantor, and such guarantee is secured by a lien on substantially all of the assets of Black Creek and Black Creek Holdings.

Under the Black Creek Credit Agreement, Black Creek was required to make mandatory prepayments of principal on the term loan (i) in the event of certain dispositions of assets and insurance proceeds (as subject to certain exceptions), in an amount equal to 100% of the net proceeds received by Black Creek therefrom, and (ii) in an amount equal to 100% of the net proceeds to Black Creek from any issuance of Black Creek's debt or equity securities.

On December 1, 2011, The Black Creek Credit Agreement was amended to change the payment due on March 31, 2012 to April 2, 2012, and the payment due on June 30, 2012 to July 2, 2012.

The Black Creek Credit Agreement, as amended, contained certain covenants, including those limiting the guarantor's and Black Creek's ability to incur indebtedness, incur liens, sell or acquire assets or businesses, change the nature of their businesses, engage in transactions with related parties, make certain investments or pay dividends.  In addition, the Black Creek Credit Agreement required Black Creek to maintain certain financial ratios.  

All outstanding amounts due under the Black Creek Credit Agreement were repaid in connection with the refinancing of Black Creek's indebtedness under the Third Amended and Restated Credit Agreement, as more fully described above.

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CONTINGENCIES (Details) (Unasserted claim, USD $) In Thousands, unless otherwise specified	Sep. 30, 2013	Mar. 31, 2013
Unasserted claim
Contingencies:
Contingency accrual	$ 363	$ 490

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COMMITMENTS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Mar. 31, 2013
Commitments [Line Items]
Rental payments	$ 186	$ 147	$ 356	$ 289
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
September 30, 2014	492		492
September 30, 2015	415		415
September 30, 2016	299		299
September 30, 2017	241		241
September 30, 2018	211		211
Thereafter	578		578
Total	2,236		2,236
Charter costs	254	249	507	498
Operating Leases, Future Minimum Charter Costs Due, Rolling Maturity [Abstract]
September 30, 2014	760		760
September 30, 2015	760		760
September 30, 2016	760		760
September 30, 2017	760		760
September 30, 2018	760		760
Thereafter	253		253
Total	4,053		4,053
Contractual commitments	124		124		731
Maximum [Member]
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
Annual increase of charter costs	3.00%		3.00%
Operating leases [Member]
Commitments [Line Items]
Rental payments	146	108	277	212
Operating sublease [Member]
Commitments [Line Items]
Rental payments	$ 40	$ 39	$ 79	$ 77