Inland Pushboat Market Report - Dec 2023

Of the 13,280 vessels (excluding barges) Marcon currently tracks, 819 are inland river pushboats with 45 officially on the market for sale (31 U.S. flag and 14 foreign flag). Six of the boats with age listed were built within the last ten years. Twenty-six boats are forty-five years of age or older. The oldest listed was built in 1944, a 76', 1,150BHP vessel on the U.S. West Coast. This is counterbalanced by three 2022-built pushboats in the U.S. Marcon also has six inland river pushboats listed for charter – four U.S. and two foreign.

The number of inland river push boats officially on the market for sale in total is 45, down 15 or 25%, from one year ago in December 2022 and down 60 or 57.14% from November 2018. We do not have any push boats offered greater than 5,000HP, reflecting that higher horsepower units are working consistently. Currently, 13.33% of the push boats available are less than 10 years old, same as one year ago and up from 8.57% reported five years ago. The average age of all on the market through Marcon last year and five years ago was 40 and 45 years, respectively, compared to 40 years now. Mostly older foreign-flagged vessels have gone on the market, with average age going from 33 years in 2018 to 42 years now. U.S.-flagged push boats went from 47 years old five years ago to 40 last year to 39 years old as of this report date.

Of the 41 vessels listed for sale where engine type is known, eleven are powered with EMDs, followed by nine each with CATs and Cummins, three with GM and nine comprised of other types. Most of the inland river pushboats Marcon has listed for sale are located in the U.S. with 31 vessels or 69%; followed by seven or 16% 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 77% compared to 83% in 2018, with it now decreasing to 69%. Compared to five years ago, push boats available in Europe has increased as percentage of available for sale from 10% to 16%, with same occurring in Latin America (2% in 2018 to 11% now).

Marcon closed 18 sales and one charter in 2023, 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 2023 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
Overall, the U.S. inland market seemed slower in 2023 than it did in 2022. Low water levels in key rivers and ports, including the Panama Canal, impacted schedules and freight movements. Key export areas, such as the Red Sea, saw supply disruptions due to military actions. All of these disruptions have an impact along all phases of the transportation and supply chain. But operators are reporting high utilization and strong charter rates for their working inland vessels and barges.

While Marcon did see an increase of tonnage availability across several maritime sectors in 2023, the inland market tightened with a decline in availability of second hand inland vessels and barges. During 2023, Marcon completed the sale of one U.S.-flagged pushboat, compared to the sale or charter of 12 tugs. It has been difficult to find available inland tonnage that meets buyers’ needs and price levels, while abiding by sellers’ desired trade and competition restrictions. Corporate acquisitions have led to fleet consolidations. Lingering effects of the pandemic have impacted maintenance and certification of much tonnage, with an increase in scrapping of tonnage idled during the “shutdown” when costs to reactivate are too high or there is not available yard space for required work.

 

Commercial Marine Brokers since 1981