KMT operates 1,105 inland tank barges, accounting for 28% of the estimated 4,004 inland tank barges in the United States. The U.S. petrochemical industry relies on low-cost domestically produced natural gas feedstock, supporting significant volumes of raw materials and intermediate products transported between Gulf Coast petrochemical plants and terminals for both domestic and export purposes. Demand for tank barge transportation services is influenced by production volumes of bulk liquid commodities such as petrochemicals, black oil, and refined petroleum products, which are affected by natural gas and crude oil prices. While lower energy prices generally increase demand for these services, declines in crude oil prices during 2016 and 2017 led to reduced domestic crude oil and natural gas condensate production, decreasing transport volumes. From 2015 to projected estimates in 2025, the number of inland and coastal tank barges transporting crude oil and natural gas condensate has decreased. Energy price volatility can cause production uncertainty and delays in new plant construction, intensifying competition for barge transportation and potentially lowering rates. Industry-wide, new tank barges are expected to be placed in service and retirements to occur in 2023, 2024, and 2025, resulting in net changes to the fleet size each year.
Kirby's Comment on Supply Chain
KMT operates 1,105 inland tank barges, accounting for 28% of the estimated 4,004 inland tank barges in the United States. The U.S. petrochemical industry relies on low-cost domestically produced natural gas feedstock, supporting significant volumes of raw materials and intermediate products transported between Gulf Coast petrochemical plants and terminals for both domestic and export purposes. Demand for tank barge transportation services is influenced by production volumes of bulk liquid commodities such as petrochemicals, black oil, and refined petroleum products, which are affected by natural gas and crude oil prices. While lower energy prices generally increase demand for these services, declines in crude oil prices during 2016 and 2017 led to reduced domestic crude oil and natural gas condensate production, decreasing transport volumes. From 2015 to projected estimates in 2025, the number of inland and coastal tank barges transporting crude oil and natural gas condensate has decreased. Energy price volatility can cause production uncertainty and delays in new plant construction, intensifying competition for barge transportation and potentially lowering rates. Industry-wide, new tank barges are expected to be placed in service and retirements to occur in 2023, 2024, and 2025, resulting in net changes to the fleet size each year.
Sources:
Kirby Corporation's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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