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Uncertainty is Marcon's word of the year for 2025. The offshore support industry faces a challenging 2025, grappling with political shifts, economic volatility, and regulatory hurdles. Marcon International has seen a significant slowdown in vessel transactions and mismatched pricing expectations, reflecting market hesitancy. Despite setbacks like the U.S. ban on new offshore wind leasing, the sector remains resilient, driven by decarbonization efforts and technological innovation. High-specification assets and financial flexibility will be crucial for navigating supply chain disruptions and geopolitical tensions.

The current state of the towing sale and purchase market is very slow. It is not dead, but only because there is enough movement to get one's hopes up. In discussions with other brokerages, we have found we are all dealing with below normal sales volumes and very limited availability of tonnage across multiple markets. Our "public" marketing, what is listed on our website, in our market reports and in our newsletters, is at all-time lows. We have tonnage available, but the "good" stuff is being snapped up quickly, leaving tonnage that has seen better days. Unfortunately for buyers, prices are reflecting the supply shortage, and we are seeing above average prices on tonnage, that honestly, need a lot of repairs or class renewals to be able to work in service. We have seen several units go into alternate service, not requiring certain class renewals or repairs, but those are due to lack of options in the desired service.

Marcon finished 2023 with 12 tugs and one pushboat sold or chartered and one tug chartered to date in 2024. 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. The U.S. inland market seemed slower in 2023 than in 2022, with continuing low water levels, lingering effects from the pandemic shutdown and long distance impact of hostile actions in key foreign ports. However, operators saw high utilization and strong charter rates for both inland towboats and barges. Marcon continues to see a very limited supply of good second-hand tonnage for sale.

To date in 2023, Marcon has closed 19 sales, including nine tugs and one inland pushboat. Activity in the US tug market remains brisk with numerous tugs changing hands during the first part of the year. The U.S. inland market has slowed somewhat compared to 2022. Supply chain normalization and more normal water levels has brought demand more toward balance. While there is strong demand for inland push boats, second hand supply continues to be very limited.

In February 2023, Marcon reported 247 supply and tug supply boats and 79 crew, fast supply and pilot boats officially on the market for sale. The offshore oilfield market has continued to make marked improvement since Marcon's last offshore supply market report in November 2022, and shows no signs of abeyance looking into the future. Rates continue to strengthen and vessel sales into and out of the oilfield market continue to move at a rapid pace. Marcon has closed eight sales to date in 2023 after closing 18 sales and one charter in 2022. These sales included several offshore support vessels for offshore and alternate service.

Marcon has closed 13 sales to date in 2022, after ending 2021 with ten sales and one charter. 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. Inquiries have steadily increased, especially for ocean deck barges.

Overall, Marcon has seen the number of offshore support vessels listed for sale shrink over the past year and especially when compared to five years ago. Dealing with the past two years of the world in a global pandemic that shut down commerce and economies, vessel owners reacted in a number of different ways. As we are finally seeing resumption of commerce, reopening of ports and reactivation of fleets, we are starting to see some enquiries for supply and crew vessels. As of late February 2022, Marcon had 313 supply and tug supply boats and 225 crew boats officially listed on the market for sale, down 68 supply and tug supply boats and 22 crew boats from one year ago.

In May and June 2021, Marcon reported 615 tug boats and 54 push boats, respectively, officially on the market for sale. Of Marcon's ten sales and charters to date in 2021, eight were tug boats. Between these sales and continuing tug inquiries, we believe that this is a sign that part of the market is moving forward. Sales of push boats have been far and few between, though we have a number of inland river (and ocean) tank barges for sale. Many buyers, across multiple market segments, continue to be stymied by project delays, worker shortages, an uncertain economy and travel restrictions.

In February 2021, Marcon reported 375 supply and tug supply boats and 237 crew, fast supply and pilot boats officially on the market for sale. Marcon ended 2020 with 20 sales and two charters, which involved many deals which were well in the works before the Covid-19 situation developed. Recently, we has started to see some small signs of improvement in offshore supply vessel activity, though many vessels are laid up and vessel values remain depressed.

In May 2020, Marcon reported 617 tugs officially on the market for sale, up 15.54% from one year ago, while it reported 73 push boats officially for sale, down 22.68% from one year ago. Marcon ended second quarter 2020 with 16 sales completed, including four tugs, which involved many deals which were well in the works before the Covid-19 situation developed. Since that time, the market has been extremely slow, which we see reflected across the board both domestically and world-wide.

Marcon has 27 inland and 25 ocean or coastal tank barges available for sale out of 680 tracked as of end-November 2019, fewer than were available one year ago. Marcon has several US and foreign flagged tank barges for sale but there has not been much appetite for the prices offered against the requirements of the Buyers. The ocean / coastal market generally remains in a situation of 'over tonnage' with too many barges and not enough work. Looking at select third quarter earnings releases, owners are reporting that in the inland and coastal markets, day rates were flat or slightly up, while utilization remained flat.