Tug Boat Market Report - August 2016
Following is a breakdown of available anchor handling coastal, ocean and harbor tugs. Separate reports available on inland river pushboats and anchor handling tug supply vessels.
Market Overview
Of the 13,121 vessels and 3,816 barges that Marcon currently tracks, 4,945 are tugs with 637 currently officially on the market for sale worldwide, up 2.25% since May and 0.32% from August 2015. Of the tugs for sale, 55.19% of foreign and 96.58% of U.S. tugboats are direct from Owners. 217 or 34.07% of the tugs worldwide, primarily foreign flagged, were built within the last 10 years, are newbuilding re-sales or currently under construction - compared to 35.75% one year ago. 64 (10.05%) are over 50 years of age. Thirteen have no age listed. The oldest tug Marcon currently has listed was built in 1912 and is very last of over 1,000 first generation steam trawlers and halibut fishers. This "old lady" is balanced by 25 newbuildings up to 8,076HP scheduled for delivery in 2016.
The majority of tugs Marcon tracks for sale as of the time this report is being written are in Southeast Asia with 134 tugs officially on the market (131 last report), followed by 116 in the U.S. (123), 78 in the Mid-East (69), Europe with 71 (65), 69 in the Far East (66), 55 in the Mediterranean (55), 25 in the South Pacific (27), 23 in Latin America (21), 19 in the Caribbean (18), 15 in Africa (20), 15 in Canada (14), 9 where location unstated (6) and 8 in Southwest Asia (8). CAT diesels still power most tugs for sale with machinery in 150 or 23% of the tugs Marcon lists. This is followed by 90 Cummins, 63 EMD, 55 each Niigata and Yanmar, 24 each Deutz-MWM and Mitsubishi, 23 GM/DD and 19 Wartsila powered tugs. 134 tugs are powered by machinery from other manufacturers from ABC to Zibo with, as always seems, five Fairbanks Morse boats still on the market. In tugs listed for sale since August 2011, CAT and Yanmar powered vessels are up 5 percentage points each, Niigata is up 3 points, Mitsubishi and Wartsila are up 2 points each and EMD is down 3 points.
There has been a definite shift in the second-hand tug market over the last few years with newer boats, many of which are ASDs out of Southeast Asia and the Far East, being offered for sale. Five years ago, only 31.45% of the tugs worldwide, primarily foreign flag, were built within the previous ten years compared to 34.07% today. The United States also then had the largest selection of tugs listed for sale with 145 available (24.1%) tracked by Marcon (plus nine additional U.S. flag tugs overseas). 102 tugs were located in Southeast Asia (17.0%), 93 tugs in Europe (15.5%), Far East 87 (14.5%), Mediterranean 65 (10.8%), Mid-East 35 (5.8%) and Caribbean 24 (4.0%). Looking at types of tugs available for sale worldwide, conventional twin screw tugs still prevail today with 382 (60.0%). These are followed by 148 azimuthing tugs (23.2%) on the market, 92 single-screw tugs (14.4%), 12 Voith Schneider tractor tugs (1.9%) and three triple screw (0.5%). As a comparison and demonstrating the trend in propulsion, five years ago 20.0% of the 601 tugs for sale were single screw, 60.1% twin screw, 16.1% azimuthing and 3.3% were Voith Schneider. More ASD tugs are being listed for sale worldwide than single screw tugs. The scrapping of older single screw tugs continues as they are seldom able to be sold for further commercial trade.
The greatest global changes in horsepower for sale in the last five years have been in the 2,000-2,999HP range with 40 tugs more available today with an average age of 27 years compared to August 2011 when the average age of the 121 vessels listed was 28 years. Tugs in the 3,000-3,999HP range increased by 21 from five years ago. Average age stayed at 21 years, with average build date now of 1995. There are also thirteen more 4,000-4,999HP tugs today (17 years vs. 19 years). There are 25 fewer under 1,999BHP and 13 fewer 7,000-7,999BHP tugs on the market today.
Actual sale prices of all vessels and barges sold by Marcon to-date has averaged 95.49% of asking prices. In 2015 actual sales prices averaged 84.95% of asking prices, compared to 2014's 85.65%, 2013âs 87.07% and 2012's average 81.79%. Five tugs were sold so far in 2016 with an average price per BHP of $291.94 and average age of 36 years. Five tugs were sold in 2015 with an average price of $243.20 and average age of 34 years. Seven tugs were sold in 2014 with an average price per BHP of $282.55 and average age of 41 years. These are lower than 2013's average price per BHP for a "generic" 33 year old twin screw tug of US$ 324.78. 2014 sales included both foreign and domestic tugs and actual ages covered a relatively narrow range from 32 to 47 years of age, whereas 2015's sales included one foreign and four U.S. sales with ages ranging from 8 to 50 years and 2016's to date include one foreign and four U.S. sales with ages ranging from 19 to 50 years. We continue to see updates about vessels scrapped or repossessed and we believe that 2016's uptick in $/BHP is temporary due to the specific vessels and that prices, especially for older vessels, will continue to decline for the next few years.
Commercial Marine Brokers since 1981