Market Report for Information About the Keel-Laying at the Vyborg Shipyard for the First of Two 5,000Mtdw, Arc130a Icebreaker-8 Class Vessels for Gazprom Neft
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P.O. Box 1170, 9 NW Front Street, Suite 201 Marcon International, Inc. Coupeville, WA 98239 U.S.A. Telephone (360) 678 8880 Vessels and Barges for Sale or Charter Worldwide Fax (360) 678-8890 E Mail: [email protected] http://www.marcon.com May 2016 Tug Market Report 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. Horsepower Under 1,000 – 2,000 – 3,000 – 4,000 – 5,000 – 6,000 - 7,000 – 8,000 – 9,000 Total 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Plus Jan 2000 161 145 72 62 27 15 3 4 7 2 498 Jan 2001 138 133 81 72 34 20 5 7 8 2 500 Jan 2002 117 134 85 67 38 22 2 5 6 4 480 Jan 2003 152 176 96 71 40 21 2 4 6 5 573 Jan 2004 117 140 77 67 29 21 1 5 12 3 472 Jan 2005 117 141 71 69 28 21 1 11 9 2 470 Jan 2006 97 125 90 66 21 16 5 6 8 1 435 Jan 2007 77 114 97 68 25 10 5 4 7 0 407 Jan 2008 73 118 105 58 19 13 2 7 1 1 397 Jan 2009 73 94 95 76 29 19 6 5 2 3 402 Feb 2010 74 136 121 125 47 36 9 7 3 4 562 Feb 2011 66 111 137 142 80 47 10 15 8 5 621 Feb 2012 75 133 132 153 81 45 14 17 7 1 658 Feb 2013 92 166 167 153 73 34 17 15 8 2 727 Feb 2014 86 151 184 136 63 38 13 9 5 2 687 May 2014 87 160 196 145 63 41 10 5 5 1 713 Aug 2014 78 117 170 131 69 34 11 6 6 1 623 Nov 2014 74 120 168 135 67 35 10 9 8 1 627 Feb 2015 74 117 163 134 66 38 15 8 7 0 622 May 2015 66 121 150 147 70 44 16 9 6 3 632 Aug 2015 65 123 168 133 64 46 17 8 6 5 635 Nov 2015 71 123 179 124 64 42 17 8 7 5 640 Feb 2016 66 114 164 127 69 41 17 6 4 6 614 May 2016 65 113 168 133 71 42 17 7 2 5 623 May 2016 - U.S. 21 24 30 23 9 5 6 3 0 0 121 May 2016 - Foreign 44 89 138 110 62 37 11 4 2 5 502 Avg. Age - Worldwide 1980 1986 1988 1994 1999 2003 1999 1985 2015 1993 Avg. Age - U.S. 1959 1966 1967 1973 1980 1986 2001 1982 0 0 Avg. Age - Foreign 1992 1992 1993 1999 2002 2006 1997 1987 2015 1993 Charter - Worldwide 20 55 60 60 33 20 7 4 10 16 285 Charter - U.S. 3 14 13 13 7 2 1 0 2 0 55 Charter - Foreign 17 41 47 47 26 18 6 4 8 16 230 Up Since Last Report Down Since Last Report Market Overview Of the 13,084 vessels and 3,860 barges that Marcon currently tracks, 4,936 are tugs with 623 currently officially on the market for sale worldwide, up 1.47% since February and down 1.42% from May 2015. Of the tugs for sale, 53.39% of foreign and 95.04% of U.S. tugboats are direct from Owners. 201 or 32.26% of the tugs worldwide, primarily foreign flagged, were built within the last 10 years, are newbuilding re-sales or currently under construction – compared to 35.94% at last November’s report. 70 (11.24%) are over 50 years of age. Eight 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 15 newbuildings up to 8,076HP scheduled for delivery in 2016. 1 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – May 2016 The majority of tugs Marcon tracks for sale as of the time this report is being written are in Southeast Asia with 131 tugs officially on the market (142 last report), followed by 123 in the U.S. (118), 69 in the Mid-East (51), 66 in the Far East (76), Europe with 65 (65), 55 in the Mediterranean (60), 27 in the South Pacific (30), 21 in Latin America (29), 20 in Africa (23), 18 in the Caribbean (15), 14 in Canada (13), 8 in Southwest Asia (8) and 6 where location unstated (10). CAT diesels still power most tugs for sale with machinery in 152 or 24% of the tugs Marcon lists. This is followed by 86 Cummins, 57 EMD, 55 Yanmar, 54 Niigata, 25 Deutz-MWM and Mitsubishi, 24 each GM/DD and 19 Wartsila powered tugs. 126 tugs are powered by machinery from other manufacturers from ABC to Zibo with, as always seems, six Fairbanks Morse boats still on the market. In tugs listed for sale since May 2011, CAT and Yanmar powered vessels are up 5 percentage points each, Cummins and Niigata 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 30.63% of the tugs worldwide, primarily foreign flag, were built within the previous ten years compared to 32.26% today. The United States also then had the largest selection of tugs listed for sale with 151 available (24.0%) tracked by Marcon (plus seven additional U.S. flag tugs overseas). 108 tugs were located in Southeast Asia (17.1%), 102 tugs in Europe (16.2%), Far East 83 (13.2%), Mediterranean 73 (11.6%), Mid-East 33 (5.2%) and Caribbean 27 (4.3%). Another major shift in the marketplace is with the Southeast Asian second-hand tug market overtaking Europe and the U.S. in the number of tugs for sale in the region. As far as types go - conventional twin screw tugs still prevail today with 370 (59.4%) for sale worldwide. These are followed by 136 azimuthing tugs (21.8%) on the market, 103 single-screw tugs (16.5%), 9 Voith Schneider tractor tugs (1.4%) and five triple screw (0.8%). As a comparison and demonstrating the trend in propulsion, five years ago 21.7% of the 630 tugs for sale were single screw, 57.1% twin screw, 17.1% azimuthing and 3.5% were Voith Schneider. As we have been saying for a while many older single screw boats have lingered too long and are now being broken up. We now see more ASD tugs listed for sale worldwide than single screw tugs. The greatest global changes in horsepower for sale in the last five years have been in the 2,000 – 2,999HP range with 26 tugs more available today with an average age of 28 years compared to May 2011 when the average age of the 142 vessels listed was 30 years. Tugs in the 3,000-3,999HP range declined by 11 from five years ago. Average age increased from 21 years to 22 years, with average build date now of 1994. There are also eight fewer 7,000 – 7,999HP tugs today (31 years / avg. build date 1985). Average age in 2011 in this horsepower range was 26 years. Actual sale prices of all vessels and barges sold by Marcon to- date has averaged 90.86% of asking prices. In 2015 actual sales prices averaged 84.95% of asking prices, compared to 2014’s 85.65%, 2013’s 87.07% and 2012’s average 81.79%. Four tugs were sold so far in 2016 with an average price per BHP of $279.18 and average age of 35 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 three U.S. sales with ages ranging from 19 to 50 years. We continually see updates about vessels scrapped or repossessed and we believe that this first quarter 2016’s uptick in $/BHP is only temporary due to the specific vessels and that prices, especially for older vessels, will continue to decline for the next few years. 2 www.marcon.com Details believed correct, not guaranteed. Offered subject to availability. Marcon International, Inc. Tug Boat Market Report – May 2016 Recent Marcon Tug Sales & Charters 1,700HP U.S. flag tug sold to Gulf Coast operators on a private & confidential basis. Marcon acted as sole broker in the sale and has represented both buyer and seller in a number of previous tug transactions.