Marcon: CARB puts a crimp on tug sales into California
Written by Nick Blenkey
Tugs Marcon currently lists include this 105-foot x 30-foot twin-screw. Built by Halter Marine in 1976 and rebuilt in 1998, it has a USCG COI and ABS loadline certificate issued in June 2022.
Coupeville, Wash., shipbroker Marcon International Inc. has issued its latest tug market report and says that sales and purchase activity has been brisk, with numerous tugs changing hands during the past quarter of 2023.
Marcon’s involvement in the domestic U.S. market has included selling a U.S.-flag 136-foot LOA 1978 McDermott Shipyard built 5,750B HP tug from U.S. West Coast owners in the past month, as well as a U.S.-flag 1,300 BHP tug in Alaska and a Tier 3, 2,200BHP U.S.-flag tug from the U.S. Gulf to new owners for employment in U.S. Northeast wind farm support work. The firm has several offerings remaining in the U.S. market, including a 4,400 BHP twin screw ocean tug thath has just completed its 5 year dry-docking for ABS and USCG, and is ready to go with full refurbishment alsocompleted.
“We also have a few smaller construction / dredge support tugs which can be developed, but we are finding it difficult to move tonnage into the expected high demand of the California dredge and marine construction markets at this time,” says Marcon. “This is mainly due to CARB (California Air Resource Board) requirements. The current CARB requirements appear to insist any and all newly imported vessels into the California market will now require Tier 4 main engines to enter that potentially lucrative market. Tier 2 is being phased out at the end of 2023, but instead of allowing Tier 3 tonnage to be brought in, CARB has declared that all new imports into the market shall be Tier 4 (which was not technically required until phasing out of the Tier 3 at the end of 2027). This has stymied many acquisition possibilities for owners and operators looking to continue their service in the Golden State, and may portend a day of reckoning when there are not enough acceptably tiered tugs to service the demand in that region.”
Of the 13,322 vessels and 3,757 barges that Marcon tracked as of May 2023, 5,184 are tugs with 316 officially on the market for sale worldwide, down 249 or 44.07% from one year ago, May 2022, and down 93 or 22.74% from May 2018. 95.51% of U.S. and 36.12% of foreign tugboats for sale are direct from owners. 52 or 16.46% of the tugs worldwide, primarily foreign flagged, were built within the last 10 years, or are newbuilding re-sales or are currently under construction – compared to 19.80% one year ago and 35.04% five years ago. On the other side of the coin, 53 (16.77%) are over 50 years of age, with five of those over 75 years old. Eight have no age listed. The oldest tug Marcon currently has listed is a 1940 built 122 foot LOA, 1,950 BHP single screw tug located on the U.S. Great Lakes. This “old lady” is balanced by two twin screw tug newbuild resales for delivery in the U.S. in 2023 and 2024.
