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 August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Edelweiss Now Controls Bharati Shipyard

Edelweiss Asset Reconstruction Company has taken over management control of Bharati Shipyard, says a report in ET.   Edelweiss now controls 70% of the Indian yard’s debts.

Offshore Operators Can Simplify Safety Equipment Logistics

Safety equipment manufacturer VIKING Life-Saving Equipment said its Offshore Safety Agreements are providing relief for offshore operators seeking to ensure compliance

Keppel Delivers Jackup to UMW-OG

Keppel FELS, a wholly owned subsidiary of Keppel Offshore & Marine (Keppel O&M) has delivered UMW Naga 8, a KFELS B Class jackup rig, to Malaysia’s UMW Oil & Gas Corporation Berhad (UMW-OG).

Barges

Runaway Crane Barge Sinks on the Mississippi

The U.S. Coast Guard is working with a team of responders to recover a runaway crane barge that sunk near Convent on the Mississippi River.   The crane barge

MN: Foss Maritime Company

The Company: Foss Maritime Company is wholly owned by Saltchuk Resources, a privately owned family investment company formed in 1982 and based in the Pacific Northwest.

Alaska Marine Lines Reduces Fuel Surcharge

Alaska Marine Lines, a marine transportation company providing barge service to and from Alaska and Hawaii, informs it has filed with the U.S. Surface Transportation

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | 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: 0.2019 sec (5 req/sec)