Crew Boat Market Report - May 2016

Marcon presently has the following crew boats, pilot boats and launches officially available for sale, both domestically and abroad. Others can be developed on a private and confidential basis.

Market Overview
Of the 13,125 vessels and 3,876 barges Marcon tracks, 1,149 are crew, fast supply & pilot boats with 233 officially on the market for sale, plus we have 56 boats available for charter worldwide. 33.9% of the boats officially for sale are U.S. flag. 79 crew boats for sale worldwide were built within the last 10 years. 63 boats, or 27.04%, are 25 years of age or older. The oldest boat listed is a 40', 240BHP 1957 built and located in the US Northwest. This vessel is counterbalanced by one foreign-built newbuild 132.1', 5,400BHP crewboat scheduled for delivery in 2016 in the Far East.

More crew boats, FSV, and FSIVs have come on the market for sale since our last report. As vessels have come off jobs in various markets, owners have been offering them for sale. Although asking prices remain stable in most cases, buyers at these levels are few and far between given the lack of tenders for new contracts. 2016 will hopefully be a transition year, with oil prices beginning to move a little higher and global E&P spending at least starting to recover in 2017 / 2018. Actual sale prices of all vessels & barges sold by Marcon so far in 2016 have averaged 92.24% of asking prices, compared to 2015's 84.95%. Where vessel location is known, 77 boats for sale are in the U.S., followed by 41 in Southeast Asia, 30 in Europe, 21 in the Mid-East, 17 in Africa, 12 in Latin America, 9 in the Mediterranean, 8 in the Caribbean, 6 in Southwest Asia, 4 each in Canada and at undisclosed locations and 2 each in the Far East and the South Pacific. Of the crew, pilot boats and launches listed for sale, the most popular engine is Cummins in 66 of the 230 boats where engines are given, followed by 59 CAT diesels, 57 GMs, 11 each with MTUs and Volvo/Volvo Pentas, 6 MAN/MAN-B&Ws, 4 Yanmar powered boats and 16 other types.

Marcon Market Comments
With oil now near $50/bbl, there is a sense of hope that some boats may go back to work toward the end of 2016 or early 2017, if prices hold or move higher. Rig counts remain at historic lows, but seem to have reached a bottom. Pemex may not lay off as many rigs as anticipated earlier in the year. The supply and demand for oil seems to be reaching equilibrium. Despite these positives, the number of FSV and FSIVs on the market remains at an all-time high. Many are fully classed modern boats with DP-1 or DP-2. 2016 is proving to be worse than 2015 for most operators, but the bottom of the downturn may be in sight. Now may be a good time for operators with cash to take advantage of some of the good deals on the market. Many prices (mostly unofficial) are now at 30 to 50% mark downs compared with 2013/2014 levels. Marcon can develop various sizes of boats for sale on a private and confidential basis - especially if sold out of immediate competition. Please contact us with your requirements.

Commercial Marine Brokers since 1981