Inland Pushboat Market Report - February 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 12,982 vessels (excluding barges) Marcon currently tracks, 693 are inland river pushboats with 54 officially on the market for sale (45 U.S. flag and nine foreign flag). Only one of the boats with age listed was built within the last ten years. 33 boats are forty-five years of age or older. The oldest listed are two 1939-built pushboats, including a 1,500HP, 81 footer which has been rebuilt and repowered many times since and is still going strong.

Of the vessels listed for sale, CAT engines are most popular with machinery in 18 vessels. These are followed by General Motor / Detroit Diesels in 10, Cummins in seven and 13 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 45 vessels or 83%; followed by 6 or 11% in Europe, two in Africa and one in Canada.

Actual sale prices of all vessels and barges sold by Marcon in 2015 averaged 84.95% of asking prices, compared to 2014's 85.65%. Asking prices have remained generally flat since our last report. The market outlook is stable, but shrinking 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 18 inland river pushboats listed for charter - ten U.S. and eight foreign.

Marcon's Market Comments
The US inland river market remains steady, but lower overall with the slowdown in oil, coal and other commodities. 2016 may see retirement of older barges as utilization lowers, especially in the tank barge fleet. The sale and purchase market for pushboats and river barges remains stable. Prices asked for older tonnage remain fairly high. Barge newbuild prices have fallen a bit due to lower steel prices, as have scrapping prices for older barges. Push boat newbuilding prices remain stable, but with more yards interested in work given the reduction in oilfield related projects. The foreign market for US flag surplus equipment is very slow given the worldwide reduction in various commodities traded. Latin America, traditionally a buyer of U.S. flag inland river equipment, is seeing widespread economic weakness especially in Brazil with an estimated 3.8% decline for 2015 and 3.5% decline projected for 2016. According to the International Monetary Fund, aggregate GDP in Latin America and the Caribbean is projected to contract 0.3% in 2016, despite some positive growth in most countries in the region. Latin America and the Caribbean are not expected to see any overall growth until 2017 when 1.6% is projected.

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