Tank Barge Market Report - April 2023

Of the 3,755 barges and 13,335 vessels we currently track, 676 are tank barges with 13 inland and 18 ocean or coastal barges officially on the market for sale. The 13 inland tank barges were built between 1958 and 2016, with eight or 61.5% 25 years of age or over. The oldest inland tank barge listed today is a 64 year old, 15,000BBL tank barge, which was rebuilt in 2016 and trades in the Mediterranean. This old lady is counterbalanced by a U.S.-flagged 2016-built 11,070BBL capacity tank barge located the U.S. Midwest. One year ago, 19 inland barges were available with an average age of 29 years and five years ago, 34 inland barges were available with an average age of 26 years. The inland barges currently available for sale average 28 years old.

Of the 18 ocean/coastal barges, only two are less than 10 years old. Four or 22.2% of the ocean & coastal barges are at least 25 years old with the oldest one, a U.S. flagged, double-hull, 41,000BBL barge, built in 1955 and rebuilt in 1978. This is countered by a 2016 built foreign flagged 38,000BBL double hull barge. In May 2018, 44.10% of the 34 ocean and coastal barges listed for sale were 25 years of age or older. Today, 16 fewer ocean/coastal barges are officially available for sale compared to five years ago and three less than one year ago. Average age of all ocean/coastal barges for sale today is 23 years old (2000), compared to 21 years last year (2001) and 25 years five years ago (1993). The decline in average age suggests that while older barges have been disposed of, relatively younger units are coming onto the market for sale.

Five 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. Fourteen ocean / coastwise barges listed for sale are in the U.S., followed by two in Southeast Asia and one each in the Far East and with undisclosed location. Twenty-eight of the 31 tank barges listed for sale worldwide are double hull. Nineteen of these are U.S. flag of which one is 6 years old, 15 are 11 – 23 years old and five are 27 - 67 years of age. The nine foreign double-hull barges range from six years old in the Far East up to 64 years old in the Mediterranean.

Marcon's Market Comments
The tank barge market remains strong, still in a recovery trend. The inland market is enjoying high utilization and rising rates for both spot and term contracts. Inland utilization in excess of 90 percent, coupled with continued low levels of new construction of barges, is driving rates higher and demand for chemicals and petroleum products remains strong. The coastal market is steady, but less vibrant with decent utilization and not much upside on rates. Marcon continues to have various ocean barges available for sale in the 80,000 BBL range, but very few inland barges for sale, except for older units. Further details and price guidance are available upon request. The overall maritime sector continues to recover evidenced by Marcon closing ten sales to date for 2023, bringing us to 1,556 sale and charter transactions successfully completed since 1981.

 

Commercial Marine Brokers since 1981