Page 55: of Maritime Reporter Magazine (May 2019)

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A Foss Tug.

giant ADM). Grain major Bunge Corp, through an arrangement with Seacor

Holdings Inc. (Seacor), controls a large dry barge ? eet and Marquette Marine (also active in grain trades).

“Our inland marine transportation business experienced robust levels of activity, which resulted in tight market conditions and barge utilization levels for our ? eet in the low to mid-90% range,” KEX President and CEO David

Grzebinski told investors, on its con- ference call detailing 2018 Q4 results. “With these tight market conditions spot market rates increased in the mid to high single digit range compared to the third quarter.”

KEX says that roughly 65% of busi- ness is tied to “term” contracts.

The Role of Regulation

Much like all maritime sectors, regu- latory mandates are driving some of the changes underway in the towing sphere.

Subchapter M rules, enacted in 2016 with a compliance date of July, 2018, have mandated inspections (by the U.S.

Coast Guard, by third parties such as

American Bureau of Shipping or other recognized auditors, through AWO’s “Responsible Carriers Program” or “RCP”). According to AWO, which worked on the program with the USCG since 2003, “Subchapter M is the most

Image: Jensen Maritime, a unit of Crowley Maritime.

important rulemaking ever to affect the tugboat and towboat industry.”

The initial issuance of actual Certi? - cates of Inspection (COIs) for towing vessels will be phased in through 2022 (where a phase-in schedule requires 25% of ? eets should be inspected by

July 2019, one year into the program).

Some of the ? rst COI’s issued were is- sued to well-known names; Endeavor, in the ? eet of Dann Marine Towing, based in Tampa, and Vane Brothers

Make sure your crew is equipped to 6,000 hp vessel Brandywine (built 2006 for ATB service, coupled with a 140,000 perform maintenance at any time!

barrel barge) were early COI recipients.

Subchapter M also impacts equipment serving the inland waterways; the tow- boat Sacred Heart (built 2007) owned by Marquette Transportation gained its

COI around the same time.

The industry is now on a path to Sub- chapter M compliance. USCG spokes- person, Lt. Amy Midgett, told Maritime

Ultrasonic Cylinder pressure Fuel injector Cylinder liner

Reporter & Engineering News: “In cleaning monitoring testing maintenance accordance with Subchapter M regu- lations, owners and operators of more than one towing vessel are responsible

Innovative engineering since 1962 for ensuring that 25 percent of their ? eet has received a COI before July 22, 2019. Owners of a single towing vessel have until July 2020 to obtain a COI.“ 55

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