Page 27: of Marine News Magazine (May 2025)

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Feature

Towboats & Tugboats quity analyst Ben Nolan, Stifel, in a late Febru- Slump”, which effectively was the driving down all sectors ary report, focused on conversations with top of the stock market, analyst Nolan had a “Buy” recommen- executives from Kirby Corporation (NYSE: dation on the KEX shares. In early April, in a subsequent

KEX), reporting to investors that: “The com- report, the analyst wrote: “However, we would highlight

E pany continues to bene? t from very tight mar- Kirby as a name that should be particularly interesting at kets on the inland and coastal barge businesses. In? ation current levels given the pullback relative to KEX’s virtually has pushed rates up and years of underinvestment means complete lack of direct tariff exposure.” At that time, KEX that the markets are getting tight, and likely won’t be able had pulled back to around $90/share, having reached as to ? x that for years.” high as $104/share in mid-March.

Kirby is, by far, the largest operator of tank barges; with Tariff policies aside, the inland sector was not without a ? eet of nearly 1,100 units and an overall capacity of 24 its challenges, at least in the short term. million barrels. Analyst Jon Chappell, from Evercore, suggested that we

On the dry side, Ken Eriksen, Polaris Analytics, offered are seeing “pricing still 40% short of appropriate return eco- a positive view for barging, posting (in days preceding the nomics and realistic delivery schedules pushing into 2028.” tariff ramp-up) that: “U.S. grain exports for the 2024-25 Concerning barges on the inland waterways, he took marketing year are forecast to hit a three-year high, with a view that the present situation would turn around. In the Mississippi River system playing a critical role.” his report, he offered that: “There had been a narrative

But today, the picture is a bit less clear, and in particular building that inland barge spot rates had begun to decline, all bets may be off for now, as China is a major destination which had pressured a stock that had greatly outperformed for U.S. agricultural exports. the market in 2024. KEX management acknowledged that

In his report, issued prior to the late-March “Trump spot rates were ? at to slightly down sequentially (though

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