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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Offshore

Transocean Posts Quarterly Profit on Cost Cutting

Offshore rig contractor Transocean Ltd posted a quarterly profit, compared with a year-earlier loss, as cost cutting helped counter a slump in crude oil prices.

Skandi Paraty Delivered and On-hire

Skandi Paraty, owned by Norskan Offshore Ltda, has been delivered from the yard and went on-hire on a four years contract with Petrobras.   Skandi Paraty is an AHTS,

ABB Transformers for the Most Powerful Wind Turbines

ABB will deploy 40 special transformers to equip wind turbines for an offshore wind farm in the Irish Sea. The MHI Vestas Offshore Wind turbines are 195 m (640

Barges

LUKOIL Marine Lubricants Launches Barge in Singapore

Experiencing continued success and growing demand for the supply of marine lubricants, LUKOIL Marine has launched an additional supply barge named LUKOIL Marine.

OMB - Subchapter M Cleared for Publication

The Office of Management and Budget (OMB) completed its review of the draft final rule entitled Inspection of Towing Vessels, also known as "Subchapter M." The

Liebherr Offshore Crane on “Giant 7”

The Liebherr offshore crane division installed a board offshore crane, type BOS 35000 on the heavy lift barge “Giant 7”. The state of the art offshore crane will

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Ship Repair Sonar 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: 0.0669 sec (15 req/sec)