Backlog of New Ethanol Barge Orders

Monday, May 22, 2006
According to reports, the logistics problems in the U.S. ethanol industry are expected to spread to waterborne transportation in the near future, industry sources said. The industry is already facing a transport crunch due to limited rail time and dedicated pipeline capacity, and a lack of trucks and drivers as the country switched to ethanol, a gasoline additive recently adopted by the U.S. oil industry for use in anti-smog blends, from MTBE in early May. The reliance on inland barges for ethanol and corn transportation is expected to increase in the future, in line with the rising ethanol demand, they said. However, most shipyards in the United States are facing an order backlog up to 2008, industry sources said.

More new ethanol plants are expected to come onstream over the next year in order to cater to the strong demand. Ethanol prices in New York Harbor hit the record high earlier this week. Some shippers are considering the ethanol barge orders because they are weighing their options of building new ones or converting some gasoline barges to transport ethanol, he said.

Also, the source pointed out that the existing oil tank barge orders could be changed to accommodate ethanol specifications if needed. Besides an order backlog, barge owners and ethanol shippers will face high shipbuilding prices, owing to strong steel values. A 28,000-barrel capacity tank barge would cost about $2 million to build, and a dry cargo barge would cost about $500,000. Source: Reuters

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

DNV GL Targets Safer Approach to Subsea Lifting

The completion of a joint industry project (JIP) to improve existing standards and regulations around subsea lifting operations has resulted in a new recommended practice (RP).

Polarcus Awarded 3D Project Off West Africa

Polarcus Limited has signed a letter of intent with Perenco Oil & Gas Gabon S.A. for a 3D marine seismic acquisition project offshore West Africa.   The project,

Boskalis, VolkerWessels Win Offshore Wind Farm Work

Royal Boskalis Westminster N.V., in partnership with Volker Stevin International (VolkerWessels), has been awarded a contract by Iberdrola Renewables Offshore Deutschland

 
 
Maritime Contracts Maritime Standards Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1666 sec (6 req/sec)