Inland Pushboat Market Report - August 2016

Following is a breakdown of pushboats Marcon has available for sale worldwide. Most of these are typical U.S. inland river units, although there are a few foreign pushboats listed from Europe, Latin America and Southeast Asia.

Market Overview

Of the 13,121 vessels (excluding barges) Marcon currently tracks, 716 are inland river pushboats with 75 officially on the market for sale (62 U.S. flag and 13 foreign flag). Twelve of the boats with age listed were built within the last ten years. 34 boats are forty-five years of age or older. The oldest listed is a 1939-built 1,700BHP, 94 foot pushboat which has been rebuilt and repowered many times since and is still going strong. This is counterbalanced by a new European-built 2,600HP, 85.3' inland river pushboat.

Of the vessels listed for sale, CAT engines are most popular with machinery in 26 vessels. These are followed by Cummins in 15, General Motor / Detroit Diesels in eight and nine with other engine types ranging from Alco to Niigata. Naturally, most of the inland river pushboats Marcon has listed for sale are located in the U.S. with 62 vessels or 83%; followed by 9 or 12% in Europe and two each in Africa and Latin America.

Actual sale prices of all vessels and barges sold by Marcon so far in 2016 averaged 95.49% of asking prices, compared to 2015’s 84.95%. As reported previously, the market remains relatively flat, with some new listings. The market outlook is stable, but utilization is lower due to the slowdown in coal, oil and other commodities. There are always vessels unofficially on the market which might be developed on a private & confidential basis, so buyers should contact Marcon with specific requirements. Marcon also has 15 inland river pushboats listed for charter - seven U.S. and eight foreign.

Marcon's Market Comments

The US inland river market remains relatively stable, but weakness continues. Pushboats and barges previously engaged in coal and frack sand have been moving into grains, thus increasing availability and containing rates. Favorable river conditions have also allowed a large export season to proceed without spikes in rates. There seem to be more low to medium horsepower pushboats coming onto the sale market due to low utilization. The market for engine maintenance and repowering services remains slow, which is indicative of low utilization. Depending upon the outcome of US elections this fall, there may be improved activity in 2017 with a change in regulations and rules with regard to coal and drilling, but market forces may still be stronger. The sale and purchase market for pushboats and river barges remains stable, with new listings generally offered out of competition. Asking prices have softened, especially for older vessels. Barge newbuild prices remain lower than prior years and scrap prices for older barges remain depressed. The foreign market for US flag surplus equipment remains very slow given the worldwide reduction in various commodities, the strong US Dollar and depressed prices in Asia. There continue to be few, if any, bright spots either foreign or domestic.

Commercial Marine Brokers since 1981