Marcon releases new tank barge market report

Coupeville, Wash., based shipbroker Marcon International has just published its latest tank barge market report.

The firm says that, since its last report, the generally improved market for inland and coastal tank barge service in the U.S. has continued to maintain momentum into this past quarter of 2023. Year on year spot pricing is reported to be improving in both segments, and term contracts are being renewed at higher rates than a year ago as well.

However, low river levels and Illinois lock closures caused drops in overall inland utilization, compared to this time last year. In the coastal market, Marcon has seen a drop in available tonnage during the past six to eight months with good utilization levels being reported.

“Several of the 80,000 barrel units we had been offering for sale, since our last market report six months ago, have been sold or put back into service,” says Marcon, noting that it concluded the sale of an 80,000 barrel unit to foreign buyers very recently, and that “to our knowledge, this leaves only one 80,000 barrel double-hull tank barge available for sale on the market in the U.S. at this time.”

“There are a few larger units being offered, but these are unlikely to re-enter the U.S. market, for various reasons, so they will likely be eventually sold to foreign registry,” Marcon reports. “Newbuilding costs have literally skyrocketed in the past two years in the U.S. We expect this will also contribute to support strong utilization in all segments as normal attrition continues to take up any slack in demand, due to general market fluctuations.”

BY THE NUMBERS

Of the 3,751 barges and 13,280 vessels Marcon currently tracks, 676 are tank barges, with 12 inland and 22 ocean or coastal barges officially on the market for sale. The 13 inland tank barges were built between 1958 and 2016, with 10 (71.4%) 25 years of age or over. The oldest inland tank barge listed today is a 64 year old, 15,000 bbl tank barge, which was rebuilt in 2016 and trades in the Mediterranean. This old lady is counterbalanced by a U.S.-flagged 2016- built 11,070 bbl capacity tank barge located the U.S. Midwest. One year ago, 14 inland barges were available with an average age of 31 years and five years ago, 31 inland barges were available with an average age of 26 years.

The inland barges currently available for sale average 23 years old. Of the 22 ocean/coastal barges, only two are less than 10 years old.

Three or 27.3% of the ocean & coastal barges are at least 25 years old with the oldest one, a U.S. flagged, 66,600BBL barge, built in 1981. This is countered by a 2016 built foreign flagged 38,000BBL double hull barge. In October 2018, 44.10% of the 31 ocean and coastal barges listed for sale were 25 years of age or older. Today, 20 fewer ocean/coastal barges are officially available for sale compared to five years ago and 11 less than one year ago.

The average age of all ocean/coastal barges for sale today is 21 years old (2002), compared to 22 years last year (2000) and 23 years five years ago (1995).

Six inland tank barges which Marcon had listed for sale on the report date are located in the U.S., followed by four in Europe and one each in Africa, Latin America, the Mediterranean and location unknown. Eight ocean / coastwise barges listed for sale are in the U.S., followed by two in Southeast Asia and one in the Far East. Twenty-one of the 23 tank barges listed for sale worldwide are double hull. Twelve of these are U.S. flag of which one is 7 years old, seven are 11 – 25 years old and four are 28 – 41 years of age. The nine foreign double-hull barges range from seven years old in the Far East up to 65 years old in the Mediterranean.

• Download the full Marcon tank barge market report HERE