@informaecon @keriksen barge utilization tonnage covered barge informa's covered bpi. 9 informa...

@InformaEcon @keriksen www.BargeFleet.com

http://www.bargefleet.com/

Informa Economics IEG | Agribusiness Intelligence 2

Charting the Course

‣Barge Situation and Outlook, Ken Eriksen • Cement: Rob Innis, Director, Transportation Operations,

LafargeHolcim

• Steel/Raw Materials: Jim Scharner, Director of Transportation, David J. Joseph Company

• Grain: Ross Edwards, Vice President, Gavilon Transportation

• Aggregate Materials: Edmund Redd, Vice President & General Manager, Southern Gulf Coast Division, Vulcan Materials

‣Questions and Answers


Broken Record, Records Broken: Barge Fleet Expanded in 2016 for Covered and Tank

17,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,00019

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

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9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

16

Tota

l Num

ber B

arge

s

Num

ber B

arge

s by

Type

Year

Size of Inland Barge FleetTank Dry Open Dry Covered Total

Informa Economics IEG, Barge Fleet Profile


No One Likes to Tell their Age, but Covered Fleet Remains Youthful as Open Ages

0

2

4

6

8

10

12

14

16

1819

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

16

Aver

age

Age

Year

Average Age of Dry Barge FleetTotal Dry Jumbo Open Covered


Hang-Over has Long Road Ahead: Retiring Covered Fleet Shows no Signs of Momentum for Several Years

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,20019

7019

7119

7219

7319

7419

7519

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

16

46 45 44 43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

Num

ber o

f Cov

ered

Bar

ges

Age (Number of Years) and Year Built

Covered Barge Fleet in 2016 by Age


3% of the Fleet 97% of the Fleet


Hang-Over has Long Road Ahead: Retiring Open Fleet has Sizeable Portion of Fleet on Cusp of Retirement . . .

0

100

200

300

400

500

60019

7319

7419

7519

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

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9019

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0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

16

43 42 41 40 39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0

Num

ber o

f Ope

n B

arge

s

Age (Number of Years) and Year Built

Open Barge Fleet in 2016 by Age


30% of the Fleet 29% of the Fleet31% of the Fleet


Covered Barge Fleet Pressure to Firm as Demand Rises, Especially on Strong Crop Exports

-20

-10

0

10

20

30

40

50

60

70

80

90

100

110

120

13019

7619

7719

7819

7919

8019

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0020

0120

0220

0320

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

18

Inde

x (1

998

= 10

0)

Year

Covered Barge UtilizationTonnage Covered Barge Informa's Covered BPI


Barge Freight Rates have Difficulty Finding and Sustaining Upward Momentum

0

100

200

300

400

500

600

700

800

9006-

Sep

13-S

ep20

-Sep

27-S

ep4-

Oct

11-O

ct18

-Oct

25-O

ct1-

Nov

8-N

ov15

-Nov

22-N

ov29

-Nov

6-D

ec13

-Dec

20-D

ec27

-Dec

3-Ja

n10

-Jan

17-J

an24

-Jan

31-J

an7-

Feb

14-F

eb21

-Feb

28-F

eb7-

Mar

14-M

ar21

-Mar

28-M

ar4-

Apr

11-A

pr18

-Apr

25-A

pr2-

May

9-M

ay16

-May

23-M

ay30

-May

6-Ju

n13

-Jun

20-J

un27

-Jun

4-Ju

l11

-Jul

18-J

ul25

-Jul

1-A

ug8-

Aug

15-A

ug22

-Aug

29-A

ug

Perc

ent o

f Tar

iff

Week

Illinois River Barge Freight Rate (percent of tariff) by Crop Year (Sep/Aug)2015 2016 2017 3-Yr. Ave.


Barge Open Fleet more than Adequate, but Coal Volumes Stabilizing

-20

-10

0

10

20

30

40

50

60

70

80

90

100

110

12019

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

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0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

18

Inde

x (1

998

= 10

0)

Year

Open Barge UtilizationTonnage Open Barge Informa's Barge Pressure Index


Barge Tank Fleet Adequate, but Varies by Equipment Type

-40

-20

0

20

40

60

80

100

120

14019

8719

8819

8919

9019

9119

9219

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9419

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0120

0220

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0520

0620

0720

0820

0920

1020

1120

1220

1320

1420

1520

1620

1720

18

Inde

x (1

998

= 10

0)

Year

Tank Barge UtilizationTonnage Tank Barge Informa's Barge Pressure Index


Charting the Course

‣Barge Situation and Outlook, Ken Eriksen • Cement: Rob Innis, Director, Transportation Operations,

LafargeHolcim

• Steel/Raw Materials: Jim Scharner, Director of Transportation, David J. Joseph Company

• Grain: Ross Edwards, Vice President, Gavilon Transportation

• Aggregate Materials: Edmund Redd, Vice President & General Manager, Southern Gulf Coast Division, Vulcan Materials

‣Questions and Answers

Questions? @InformaEcon @keriksen www.BargeFleet.com W


Informa Economics IEG 775 Ridge Lake Blvd Suite 400 Memphis, TN 38120 +1 901 202 4600 [email protected] www.agribusinessintelligence.com www.bargefleet.com

T E

W

W

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