Inland Pushboat Market Report - Dec 2021

Of the 13,565 vessels (excluding barges) Marcon currently tracks, 783 are inland river pushboats with 39 officially on the market for sale (25 U.S. flag and 14 foreign flag). Seven of the boats with age listed were built within the last ten years. 19 boats are forty-five years of age or older. The oldest listed was built in 1944, a 76', 1,110BHP vessel in the U.S. Northwest. This is counterbalanced by two 2019-built U.S. flag inland river pushboats, a 56', 1,500BHP located in the U.S. Midwest and a 78', 2,000BHP located in the U.S. Gulf Coast. Marcon also has eight inland river pushboats listed for charter - six U.S. and two foreign.

The number of inland river push boats officially on the market for sale in total is 39, down 40, or 50.63%, from one year ago in November 2020 and down 27 or 40.91% from November 2016. Composition of horsepower range in the last year has changed with the biggest shifts being eleven fewer under 1,000HP with average age of 1993 (compared to 1976 in 2020), ten fewer 2,000-3,000HP (1997 vs 1981) and six fewer 1,000-2,000HP (1974 vs 1969) push boats offered. These decreases align with reports received of older, lower horsepower push boats being scrapped due to lack of work and buyers. Today, we do not have any push boats offered greater than 5,000HP, reflecting that higher horsepower units are working consistently despite the current events. For now, 17.95% of the push boats available are less than 10 years old, up from the 12.66% reported one year ago but down from 19.70% reported five years ago. In looking at overall fleet age and then by U.S.-flagged versus foreign flagged, over the past five years we can see that while overall and U.S.-flagged fleet age remained steady, foreign-flagged fleet age increased significantly as older units were placed on the market due to no work amid the global economic crisis. Specifically, the average age of all on the market through Marcon last year and five years ago was 37 years, compared to 38 years now. Mostly older foreign-flagged vessels have gone on the market, with average age going from 24 years in 2016 to 40 years now. U.S.-flagged push boats went from 39 years old five years ago and last year to 37 years old as of this report date.

Of the 32 vessels listed for sale where engine type is known, nine are powered with Cummins, followed by eight with CATs, five with EMDs, four with John Deeres and six with other engine types comprised of one each Akasaka, Delfin, Fairbanks Morse and Mercedes and two with Mitsubishi. Most of the inland river pushboats Marcon has listed for sale are located in the U.S. with 25 vessels or 64%; followed by seven or 18% in Europe, five in Latin America and one each in Canada and with "undisclosed" location. While our focus is on the U.S. market, there has been a decline of vessels offered in the U.S. as percentage of all available for sale, from 80% five years ago and 70% one year ago to 64% now. The offset are more push boats available in Europe (10% in 2016 to 18% now) and in Latin America (2% in 2016 to 13% now).

Marcon closed ten sales and one charter in 2021 after ending 2020 with 22 sales and charters completed. Many of the 2020 deals were well in the works before the Covid-19 situation developed and oil prices crashed. Throughout most of 2020 and early 2021, the market was extremely slow both domestically and world-wide. We continue to see a pickup in inquiries and inspections and have multiple sales pending at this time as business rebounds. We are hopeful, with the current pace of business, to return to pre-Covid sales levels in 2022.

Marcon's Market Comments
The inland market continued to improve during the 4th quarter of 2021, despite some headwinds. Although grain exports were down, petroleum and chemical movements were up. The Omicron variant caused some crewing issues, but has since subsided. Overall 2022 is looking to be a strong year for inland operators. Sales of push boats continue to be few and far between. We currently have several inland river (and ocean) tank barges for sale. Although demand is strong for inland push boats, second hand supply continues to be very limited. Overall Marcon has seen an increase in activity across several maritime sectors, with a lack of good second-hand vessels and barges being the primary limiting factor for increased transactions.

 

Commercial Marine Brokers since 1981