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 September 2013 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Drydocks World to Participate in SMM 2014

Drydocks World, the leading provider of maritime and offshore services to the shipping, oil, gas, and energy sectors, will participate in the prestigious 26th edition of Shipbuilding,

SBM Offshore Completes Real Estate Divestment

SBM Offshore is pleased to announce that is has completed the sale and lease back of its Monaco real estate portfolio.  The last of the three buildings was sold

Keppel T & T Appoints Lim Chin Leong to its Board

Keppel Telecommunications & Transportation Ltd (Keppel T&T) has strengthened its Board with the appointment of Mr Lim Chin Leong as an independent, non-executive

Barges

MN 100: Horizon Shipbuilding, Inc.

13980 Shell Belt Road Bayou La Batre, AL 36509 E-mail: trshort@horizonshipbuilding.com Website: www.horizonshipbuilding.com President and General Manager: Travis R.

US Rail Jams Force Rush to Roads and Rivers

U.S. coal-burning power utilities are being forced to turn to barges and more expensive trucks to move coal, desperate to shore up stockpiles left dangerously low

ABS to Class Ultra Deepwater Offloading Unit

The Remora HiLoad DP BR unit design approved by ABS will have advanced capabilities for offloading operations in Brazil's Santos Basin. ABS, a provider of classification

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Sonar 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: 0.1093 sec (9 req/sec)