Marcon sees “considerable strength” in tank barge market

Image: Marcon

Coupeville, Wash.-based shipbroker Marcon International has released its latest report on the tank barge market.

“The tank barge market has demonstrated remarkable strength throughout 2024, with Marcon observing high utilization rates and favorable contract renewals,” the report notes. “This trend aligns with reports from major operators like Kirby Corporation, which noted inland barge utilization around 90% and coastal barge utilization in the mid to high-90% range. The scarcity of available barges for sale has become increasingly apparent, as quality units are swiftly acquired by eager buyers. This reduction in secondhand tonnage availability has led to significant price increases, with term contract renewals seeing increases in the low 20% range and spot market prices experiencing rises in the low 30% range. These figures surpass the already impressive increases reported by industry leaders, such as Kirby’s high-single digit increases for inland term contracts and high-20% range increases for coastal contracts.

“The robust demand for inland transportation services, coupled with limited new supply entering the market, has further tightened the barge market. This supply-demand imbalance has created a favorable environment for barge owners and operators, reflected in the strong financial performances reported by companies like Algoma Central Corporation and Genesis Energy. Looking ahead, Marcon anticipates that the trend of high utilization, rising prices, and limited availability of secondhand barges will persist into 2025. This outlook is supported by the ongoing growth in customer demand and the current market dynamics. However, industry participants should remain mindful of potential risk factors, including seasonal weather impacts, refinery utilization fluctuations, and broader economic uncertainties that could affect shipping volumes in the coming year.”

• Read the full report HERE