New Marcon report: Tugboat market continues tight

Source: Marcon International

Coupeville, Wash.-based shipbroker Marcon International has released its May 2025 Tugboat Market Report. The brokerage says that the tugboat market remained tight through the first half of 2025, marked by limited vessel availability, restrained sales activity, and rising cost pressures that continue to shape buying decisions.

“While interest is slowly picking up, high prices and costly shipyard work are deterring many buyers, especially for older vessels needing major upgrade,” says Marcon in its market summary. “Environmental regulations and persistent uncertainty around tariffs are further complicating fleet planning, even as larger operators invest in clean propulsion and newbuilds. With international demand holding steady and private equity reshuffling domestic fleets, 2025 is shaping up to be a selective and strategically complex year for maritime professionals.

Marcon’s market comments

Marcon’s May 2025 data reveals a general decline in the number of tugs tracked by Marcon for sale across most regions, with the U.S., Southeast Asia, Far East, and Latin America experiencing the most significant reductions. The U.S. market saw a decrease from 89 tugs a year ago to 60, while Southeast Asia dropped from 59 to 15, Far East from 46 to 34 and Latin America from 20 to nine.

Over the past five years, the market for tugs has seen a significant shift towards older vessels. The proportion of tugs listed for sale built within the last 10 years has decreased from 27.07% to 10.55%, while the share of tugs over 50 years old has increased from 13.61% to 19.72%. The average age of tugs for sale has risen from 28 years in 2020 to 33 years today, reflecting an aging fleet. Regionally, the U.S. market has seen a continuing reduction in the number of tugs available, dropping from 71 to 59. Similarly, all regions tracked have also experienced notable declines in the number of tugs for sale, with the largest percentage changes with Southeast Asia decreasing from 118 to 15 (-87.29%), the Mid East from 90 to 14 (-84.44%) and the Mediterranean from 69 to 19 (-72.46%). Overall, the data suggests a tightening market with a focus on older, more reliable vessels.

Of Marcon’s listings, conventional twin screw tugs dominate with 62.4% of available vessels, followed by azimuthing tugs at 22.0%. This distribution largely mirrors the market five years ago, with twin screw tugs maintaining their lead at 61.4% and azimuthing tugs holding steady around 22%. The most notable shifts are a slight decrease in single-screw tugs from 11.0% to 9.2%, an increase in Voith Schneider tractors from 3.1% to 6.0% and a decrease in triple-screw tugs from 1.8% to 0.5%.

The global tug boat market has undergone notable changes in recent years, especially regarding the availability of vessels for sale and the rate at which older units are scrapped. The number of tug boats available for sale has dropped significantly, as many older or poorly maintained vessels have been removed from the market and dismantled.

The full Marcon report notes that “affordable, structurally sound vessels at sale prices that will make a rebuild or re-power financially workable are typically scarce. Owners of tonnage are holding prices higher than this market will absorb, and there are few buyers willing to spend or exceed $1 million for tugs requiring major repowering, or major refurbishment. Shipyard costs continue to be very strong and inflationary pressures on this industrial segment will continue to increase rebuild estimates and will more than not take longer than originally planned due to supply chain issues. In this climate, any anticipated sell-off of older, low-utilization vessels, often triggered by recent private equity acquisitions of several U.S. towing companies, has yet to yield meaningful buying opportunities, as these assets typically lack the resale value or operational appeal that most buyers seek.”

Persistent uncertainty around U.S.-imposed tariffs has disrupted global shipping volumes, softening harbor towage demand and tug utilization. At the same time, environmental regulations, notably California’s CARB emissions standards, continue to shape fleet decisions. While repowering remains cost-prohibitive for many, larger operators with healthier capital positions are investing in newbuilds and major overhauls to align with decarbonization goals. However, high shipyard costs and limited yard availability hamper this effort. The Z-drive market remains particularly constrained, with owners reluctant to part with these increasingly critical assets. The industry continues to see strong interest in cleaner propulsion technologies, yet price and infrastructure challenges slow adoption across much of the fleet.

• Download the full tug market report HERE