Page 25: of Marine News Magazine (September 2021)

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Inland Waterways now freeze damage.” He does caution, tion in the inland and coastal markets The market is picking up. Kirby was however, that farmers have planted less as well as reduced term and spot pric- forecasting that utilization “is expect- corn than anticipated, with reduced in- ing in the inland market, partially off- ed to increase further as the economy ventory available for export. set by the addition of the Savage Inland recovers and re? neries and chemical

Coal, which was historically a big Marine, LLC ? eet acquired on April 1, plants return to full operations follow- mover on the waterways, has been on 2020.” For its inland barging speci? - ing Uri. In the second half of 2021, a long down-swing as power producers cally, Kirby, with a May, 2021 ? eet of the company anticipates barge utiliza- decrease their dependence on fossil fu- 1,057 inland tank barges and 241 tow- tion to improve into the high 80% to els. The Energy Information Adminis- boats, said, “Inland tank barge utiliza- low 90% range which should lead to tration (EIA), an information provider tion levels averaged in the mid-70% a more positive pricing environment within the U.S. Department of Energy, range during the 2021 ? rst quarter in the coming months.” On its second suggests that 2020 coal production compared with the low to mid-90% quarter investors call, Kirby described (preliminary estimated at 534 million range during the 2020 ? rst quarter. a market where average barge utiliza- tons) was the lowest since 1956. The The 2021 ? rst quarter continued to be tion had risen to “the low to mid-80% agency notes further that U.S. coal impacted by reduced demand as a re- range”, where term contracts represent- shipments overall were down 22% in sult of the COVID-19 pandemic and ed approximately 65% of revenue with 2020 from 2019 levels and that coal the resulting economic slowdown as some 57% attributed to time charters. shipped by waterways fell 20% from well as the impact of reduced volumes The rates had improved with Kirby re- 2019 levels. Costs per ton to move coal as a result of Winter Storm Uri.” porting, “Spot market rates increased have not surprisingly declined, with volumes. IHS Markit’s Eriksen points to a recent recovery in coal moves post-

COVID (with record cold weather in the ? rst quarter of 2021 contribut- ing to a drawdown in stocks that had surged in 2020) and notes, “This year there was a slight bump up for domestic use and a bit higher exports. But that is more of a head fake than anything. The long-term prospects for coal movement is going in one direction, down.”

In the liquid markets, 2020’s second quarter saw dramatically reduced ship- ments, but resurgent demand began to turn things around late in the year and into 2021, albeit with reduced year-on- year utilization. Kirby Corporation, said that its “marine transportation segment’s revenues for the 2021 ? rst quarter decreased 25% and operating income decreased 96% compared with the 2020 ? rst quarter revenues and operating income. The decreases were primarily due to reduced barge utiliza- www.marinelink.com MN 25|