Tank Barge Market Report - Oct 2022

Of the 3,739 barges and 13,438 vessels we currently track, 673 are tank barges with 14 inland and 22 ocean or coastal barges officially on the market for sale. The 14 inland tank barges were built between 1943 and 2016, with 10 or 71.4% 25 years of age or over. The oldest inland tank barge listed today is a 78 year old, 9,000BBL tank barge previously used for transporting #2 oil in the U.S. Great Lakes. This old lady is counterbalanced by a foreign-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, 56 inland barges were available with an average age of 28 years. The inland barges currently available for sale average 31 years old. Excess barges continue to sit on the market, with the continuation of scraping or selling for conversion to deck service, which was the case for our most recent tank barge sale.

Of the 22 ocean/coastal barges, only two are less than 10 years old. Five or 22.7% 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 November 2017, 46.2% of the 26 ocean and coastal barges listed for sale were 25 years of age or older. Today, four 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 22 years old (2000), compared to 21 years last year (2000) and 28 years five years ago (1989). The decline in average age suggests that while older barges have been disposed of, relatively younger units are coming onto the market for sale.

Six 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. Eighteen 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. Thirty-one of the 36 tank barges listed for sale worldwide are double hull. Twenty-two of these are U.S. flag of which 16 are 11 – 23 years old, five are 27 - 67 years of age and the remainder is six years old. The 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 on a continued uptrend fueled by higher commodity demand and prices. The inland market is strong with high utilization and rising rates. Utilization in the 90 percent range, coupled with low levels of new construction of barges, is driving rates higher. The coastal market is steady, but still suffering from an overhang of excess capacity. The same inflationary pressures driving higher commodity prices also present a challenge for operating costs. The remainder of 2022 and into 2023 look to remain strong, but operators will face headwinds from continued inflation in wages, fuel and higher interest rates. The war in Ukraine and uncertainty around China’s economy look certain to keep volatility high. Altered supply chains and the renewed focus on domestic production provide a positive back drop for the industry. Marcon currently has several 35,000 to 80,000 barrel ocean barges available for sale. Further details and price guidance are available upon request.

 

Commercial Marine Brokers since 1981