Barge industry faces daunting task; shippers face continued high costs

摘要

From ageing-lock-and dam infrastructure to a shrinking fleet, the U.S. barge industry faces a daunting challenge in the coming years. Whilrthe problems are being-corrected shippers can expect continued high freight rates. The number of barges being retired each year through 2009 could reach 1,000, according to Robert Blocker of Memco Barge. With demand for coal, petroleum coke and other commodities expected to increase, freight rates - now much higher than in recent years -likely will remain at high levels even as replacement barges come into the market. "I expect to see rates moderate at current levels, which are up 60 percent," Blocker said. "I see these numbers through 2009 or 2010 unless we find a way to overbuild the industry again. There will be many more retirements in the next few years." Stronger demand for chemical barges has impacted the dry bulk barge market of late and is expected to continue to do so. Fewer shipyards have also contributed to the shrinking fleet of barges.