Inland Pushboat Market Report - Dec 2022

Of the 13,409 vessels (excluding barges) Marcon currently tracks, 810 are inland river pushboats with 60 officially on the market for sale (46 U.S. flag and 14 foreign flag). Eight of the boats with age listed were built within the last ten years. 31 boats are forty-five years of age or older. The oldest listed were built in 1944, a 76', 1,150BHP vessel and a 127', 3,600BHP vessel, both on the U.S. West Coast. This is counterbalanced by two 2022-built vessels, a 25.9', 420BHP and a 72', 2,000BHP vessel located in the U.S. Great Lakes and U.S. Midwest, respectively. Marcon also has seven inland river pushboats listed for charter – five U.S. and two foreign.

The number of inland river push boats officially on the market for sale in total is 60, up 21, or 53.85%, from one year ago in December 2021 and down 53 or 46.90% from November 2017. Composition of horsepower range in the last year has changed with the biggest shifts being seven more each under 999BHP and 1,000-2,000BHP range. Under 900BHP have an average age of 1990 compared to 1993 last year. We have five more 3,000-4,000BHP with average age 1970 vs 1967 and two more 2,000-3,000HP with average age 1998 vs 1997 last year. Due to lack of tonnage to fill enquiries, we believe that this increase is more a reflection of lack of updates from owners about changes in vessel availability than a dumping of vessels onto the market. We do not have any push boats offered greater than 5,000HP, reflecting that higher horsepower units are working consistently. For now, 13.33% of the push boats available are less than 10 years old, down from 17.95% reported one year ago but up from 10.00% 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 fairly 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 38 and 39 years, respectively, compared to 40 years now. Mostly older foreign-flagged vessels have gone on the market, with average age going from 26 years in 2017 to 41 years now. U.S.-flagged push boats went from 41 years old five years ago to 37 last year to back to 40 years old as of this report date.

Of the 54 vessels listed for sale where engine type is known, 16 are powered with Cummins, followed by 11 with EMDs, eight with CATs, six with John Deere, Mitsubishi with four and nine comprised of seven other types. Most of the inland river pushboats Marcon has listed for sale are located in the U.S. with 46 vessels or 77%; followed by seven or 11% 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 noted a year ago when it dropped to 64% compared to 84% in 2017, but it has now increased up to 77%. Compared to five years ago, there are fewer push boats available in Europe (12% in 2017 to 11% now) but more in Latin America (2% in 2017 to 8% now).

Marcon closed 18 sales and one charter in 2022, after ending 2021 with ten sales and one charter in 2021 and 2020 with 22 sales and charters completed. We had an uptick in business toward the end of 2022 with several sales already booked for early 2023. We remain hopeful, with the current pace of business, to return to pre-Covid sales levels by the end of 2023.

Marcon's Market Comments
The U.S. inland market finished the year a mixed bag for 2022. On the downside, poor weather and low water levels on the Mississippi River System caused major delays. Historic low water levels due to drought, limited loading drafts and the number of barges in tows. Due to the tonnage limitation per barge, cost per ton for barge transportation of corn and soybeans flew to record levels. On the upside, operators saw high utilization and strong charter rates. The inland tank barge market continued to see around 90% utilization and strong charter rates. Going into 2023, lack of crews remains a serious concern with uncertainty high as to how to resolve the issue and when that can be done. Whether with barges or pushboats, Marcon continues to see a very limited supply of good second-hand tonnage for sale.

 

Commercial Marine Brokers since 1981