Logistics in Focus: U.S. Waterways by Max Schlubach
Logistics in Focus: U.S. Waterways By Max Schlubach For more than 200 years, tugboats, towboats and barges have plied the United States’ vast inland river system, its Great Lakes and its three coasts. This distinctly American industry has built the coast of the Great Lakes into a global manufacturing center, enabled the U.S. to become the world’s largest wheat exporter and, today, provides the flexibility needed to become a major oil producer. Yet despite the critical role that it plays in the U.S. economy, the inland and coastal maritime industry is little known outside of the transportation sector. 14 Brown Brothers Harriman | COMMODITY MARKETS UPDATE The tugboat, towboat and barge industry is the largest segment Jones Act Vessel Type of the U.S. merchant maritime fleet and includes 5,476 tugboats Ferries Tankers and towboats and 23,000 barges that operate along the Atlantic, 591 61 0.7% Pacific and Gulf Coasts, the Great Lakes and the inland river sys- 6.5% tem. The industry is fragmented and, for the most part, privately owned, with more than 500 operators either pushing, pulling or Dry Cargo 2,911 otherwise helping move waterborne cargoes through the United Towboats 32.2% 5,476 States’ waterways. The industry is bifurcated into inland and coastal 61% sectors, which have little overlap due to the different vessels and licenses required to operate in their respective environments. The tugboat, towboat Recent market dynamics, particularly in the energy sector, have and barge industry makes up the majority As of December 31, 2014. resulted in seismic shifts in supply and demand for the U.S.
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