Tug Boat - Past Reports

In May, Marcon reported 242 tugs officially on the market for sale out of 5,137 tracked. This is down 23% from one year ago and 54% from five years ago. Marcon has sold two tugs totaling 5,165HP out of four sales, one charter and one delivery closed so far in 2024. The second-hand tug market for vessels of all sizes has continued to be very tight. Those which are available are at premium prices for tugs not in premium condition. Shipyards are busy trying to meet demand for newbuilds, upgrades for emissions and other regulatory changes, or for certification renewals. U.S. to foreign sales are taking at least 60 to 90 days for MARAD approval, which adds to the difficulties buyers are facing in trying to have working vessels in place for commitments. We have not seen any convincing signs yet of the situation improving in the short-term.

In November, Marcon reported 268 tugs officially on the market for sale out of 5,149 tracked. This is down 34% from one year ago and 51% from five years ago. Marcon closed 32 sales and charters in 2023. These sales included 12 twin screw tugs totaling 48,990BHP. The second-hand tug market in the U.S. was very active over 2023 with available tonnage that is USCG Certified becoming scarce. Owners are upgrading older tonnage to meet changing requirements as newbuild costs have risen substantially and delivery delays are quite extensive. There is very little to offer on the market currently, especially for Z-pellar tugs.

In May, Marcon reported 316 tugs officially on the market for sale out of 5,184 tracked. This is down 44.07% from one year ago and 22.74% from five years ago. Marcon has closed 17 sales so far in 2023 and we have several additional pending. These sales included seven twin screw tugs ranging between 1,340BHP and 7,200BHP. Activity in the US tug market remains brisk with numerous tugs changing hands during the past quarter of 2023. We are finding it difficult to move tonnage into the expected high demand of the California dredge and marine construction markets at this time, mainly due to CARB (California Air Resource Board) requirements.

In November, Marcon reported 408 tugs officially on the market for sale out of 5,199 tracked. This is down 14.11% from one year ago and 35.75% from five years ago. Marcon closed 18 sales and one charter in 2022 and we have several additional sales pending. The US market for tugs has continued to tighten, and it's been nearly impossible to develop any Azimuthing style tugs in the USA. Owners appear to be keen on continuing to maintain their operating units, with upgrades for machinery as needed when Tier rating requirements are required or upgraded, such as with CARB - California Air Resource Board. Newbuilding costs continue to rise, and the largest component coming out of the US shipyards are Azimuthing ship assist / escort tugs. Shipyards are busy, however, as it doesn't look like the cost increases will reverse itself moving forward.

In May, Marcon reported 409 tugs officially on the market for sale out of 5,198 tracked. This is down 13.89% from one year ago and 31.03% from five years ago. Marcon has closed ten sales to date in 2022 and we have several additional sales pending. This aligns with positive sentiment overall. Activity has nearly doubled compared to 2021 (our worst year ever) and it seems we have finally broken out of the Covid-19 overhang. Operating tugs and barges are in short supply both in the US and international market. Across the age spectrum, the lack of inventory on the second-hand market is our biggest challenge as brokers. The rise in diesel prices has refocused buyers on fuel efficiency, creating greater demand for lower BHP "right-sized" tugs. Inflation in general has driven up prices to maintain and reactivate tugs and barges, driving the prices of units with current certificates higher.

In November, Marcon reported 475 tugs officially on the market for sale out of 5,221 tracked. This is down 22.89% from one year ago, and down 27.48% from five years ago. Marcon closed ten sales and one charter in 2021. 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.