Tug Market Report - Nov 2023

Of the 13,283 vessels and 3,754 barges that Marcon tracked as of November 2023, 5,149 are tugs with 268 officially on the market for sale worldwide, down 140 or 34.31% from one year ago, November 2022, and down 278 or 50.92% from November 2018. 93.90% of U.S. and 39.78% of foreign tugboats for sale are direct from Owners. 28 or 10.45% of the tugs worldwide, primarily foreign flagged, were built within the last 10 years, are newbuilding re-sales or currently under construction - compared to 18.63% one year ago and 33.15% five years ago. 53 (19.78%) are over 50 years of age, with five of those over 75 years old. Five have no age listed. The oldest tugs Marcon currently has listed are two 1943 built U.S. flag tugs based on the U.S. West Coast. These "old ladies" are balanced by three twin screw tug newbuild resales for delivery in the U.S. and Mediterranean in 2023 and 2024.

Marcon's Market Comments

The majority of tugs Marcon tracks for sale as of this report are in the US with 83 tugs officially on the market (vs. 102 one year ago), followed by 33 in Southeast Asia (68), 30 in Europe (58), 29 in the Far East (54), 22 in the Mediterranean (35), 18 in Latin America (24), 16 in the South Pacific (15), 12 in the Caribbean (15), 8 in the Mid East (17), 6 where location unstated (9), 5 in Canada (7) and 3 each in Africa (3) and Southwest Asia (1). Where machinery is known, CAT diesels power 73 or 28% of the tugs listed for sale. This is followed by 43 vessels with EMDs, 31 Cummins, 23 Niigata, 19 Yanmar and 9 with GM. 63 tugs are powered by other machinery from Akasaka to Wartsila with one Fairbanks Morse tug on the market.

Five years ago, 33.15% of tugs for sale worldwide, primarily foreign flag, were built within the previous 10 years compared to 10.45% today. Then 12.82% of the tugs on the market were 50+ years old compared to 19.78% today. At that time, Marcon had six tugs older than 75 year, one less than today. The average age of all tugs that Marcon has for sale worldwide today is 33 years, with 1990 average build date, compared to 25 years, 1993 average built, in November 2018. The U.S. had the largest selection of tugs listed in 2018 with 134 available (24.5%), followed by 100 in Southeast Asia (18.3%), 59 in the Mid East (10.8%), 45 in Far East (8.2%), 53 in Europe (9.7%), Mediterranean 56 (10.3%), 45 in Latin America (8.2%), 21 in the Caribbean (3.8%), 10 Africa (1.8%), 9 in the South Pacific (1.6%), 3 Canada (0.5%), 7 where location is unknown (1.3%) and 4 in Southwest Asia (0.7%).

Looking at tugs for sale worldwide, conventional twin screw tugs lead with 186 (69.4%) available, followed by 49 azimuthing (18.3%), 25 single-screw (9.3%), five Voith Schneider tractors (1.9%) and three triple screw (1.1%). This is fairly comparable to five years ago when 13.2% of the 546 tugs for sale were single screw, 60.6% twin screw, 23.3% azimuthing, 1.5% VS tractor and 1.5% triple screw tugs. Bearing in mind that we are focusing on those available for sale, it seems that for the past five years, azimuthing and conventional twin screw tugs have maintained fairly steady positions in the market. Single screw tugs are mostly relegated to nearly zero commercial work, except in certain specific cases. Available for sale units have dropped considerably with many of those being scrapped due to age and condition. It is noted that in November 2023, Sea-Web reported 2,384 tugs worldwide scuttled, broken up or to be broken up world-wide. This is up 9.26% from November 2022's 2,182. Since November 2018, there has been a 60.43% increase in the number of tugs scrapped, with a significant portion of those reported in 2021 and 2022. Scrapping rates are tipping upwards again, but these seem to be units that were not able to find work or are too costly to put back into service. In certain areas of the market, we have seen an increase in demand for tugs and barges, with there being a shortage of units with desired specifications.

Marcon's database shows 278 fewer tugs officially for sale than five years ago in November 2018 with largest shifts in the lower horsepower categories. There are 37 fewer tugs are today listed in the 1-2,000HP and 5-6,000HP ranges. Average age for the 1-2,000HP tugs increased from 24 to 38 years, while the average age for the 5-6,000HP tugs increased from 17 to 31 years. The 2-3,000HP range lost 56 tugs while their average age increased from 28 to 34 years. The 3-4,000HP range lost 72 tugs while average age increased seven years. The 4-5,000HP range increased by 46 tugs with average age rising from 16 to 28 years. There were minor changes in the higher horsepower ranges as far as number available for sale and average age. In summary, we saw a 50.92% drop in listings with an eight year increase in overall average age.

Marcon closed 30 sales and two charters in 2023. Some of these sales are noted as follows: An 80,000BBL double hull U.S. Flag ocean tank barge, an 11,000HP AHTS, a 145' OSV and a 197' LOA coastal deck barge, one Tier 3 U.S. Flag 2,200BHP tug, one U.S. Flag 2,400BHP twin screw tug, three 7,200BHP INVADER Class tugs, a 1,300BHP twin screw U.S. Flag tug, and a U.S. Flag 3,000HP push boat. Additional sales have occurred on private terms, and Marcon has also recently closed on several sales including an 80,000BBL double hull U.S. Flag tank barge which is currently being towed to South America (tow also arranged via Marcon), and we also just concluded the sales of a 190' LOA 3,900BHP U.S. Flag AHTS, a twin screw 1,800HP U.S. Flag tug, a 3,000BHP single screw U.S. Flag tug and a 40' pilot boat to round out the year.

The second-hand tug market in the USA has been very active over the year 2023 with available tonnage that is USCG Certified drying up on the market substantially. Owners are continually upgrading older tonnage with new machinery, and other upgrades as the costs to deliver a newbuilt tug in the USA have gone out of sight, and time delays for delivery are now quite extended. There is very little to offer in the market, especially for Z-peller tugs. However, Marcon can still offer a few working / certified tugs for sale in the US Market, including a 4,400BHP 105' LOA tug with valid certificates, and recently refurbished and ready to trade immediately. Marcon also has for sale a 6,800BHP Z-peller tug which we can offer for sale, in excellent condition with all valid certificates and ready to trade immediately.

 

Commercial Marine Brokers since 1981