Marcon International, Inc.

As the market changes we continue to track availability of vessels, average prices and ages of vessels on the market for sale. Note, that there are always a few vessels "not officially listed for sale" which we may develop on a private and confidential basis. Click here to download a breakdown of available foreign and U.S. flag utility boats.

Market Overview
Since Fall 2000, there are twelve less utility boats on the market, primarily in the 110–130' range. Only four boats currently listed have been built within the "magic" ten year window which most buyers would like. Only seven have been built in the last 15 years. The greatest majority of the vessels listed were built in 1980-1981 with the oldest boat from 1965. Prices have remained steady with very little change since October 2000.

According to industry sources, day rates for utility boats in the U.S. Gulf have been on the rise since our last report during the 4th quarter of 2000. Utility boats in the 110–120' class are chartering out at a spot rate of abt. US$ 2,300–2,800 per day and in some cases slightly higher. The long-term rates are in the region of US$ 1,600–2,300 per day. Eighties built boats over 125' are reportedly getting region US$ 3,000 per day on a spot basis and abt. US$ 2,500 per day for term work. New generation 145'–150' utility/mini-suppliers are bringing in abt. US$ 4,500 on the spot market and closer to US$ 4,000 per day for term work. As brokers, we expect to see rates climb further as summer approaches in the U.S. Gulf and works picks up. Although newbuilds are entering the market primarily in the new generation size of vessels, work also continues to increase and older vessels continue to be sold out of the market. Although one operator is hoping for the new generation mini-suppliers to hit US$ 6,500 this summer, we are a little more cautious. We believe though that rates could realistically climb as much as 20–30% for utility boats in the summer months this year and probably plateau out for a while near that level.

Rates in Southeast Asia for 110–120' utility boats have also been on the rise, but at a slower pace than in the U.S. Gulf. According to industry sources, these boats are earning region US$ 1,600 to US$ 1,800 per day around Sinapore and a premium of US$ 2,000 per day or higher in more remote areas such as Sri Lanka. Contract terms in this market are typically longer than in the U.S. Gulf.

Recent Sales
San Diego Towing & Marine Services, Inc., San Diego, CA has purchased the 65' utility/tug 'American Endeavor' from Aqua Terra Contracting, Inc., Robstown, TX. The vessel was built all of steel in 1962, measures 65 'x 18' and is powered by two CATD343TA's totaling 700BHP. Vessel is also fitted with a Skagit BU-30 single drum towing winch, and has a USCG C.O.I. for the carriage of 18 passengers. She will be employed in the new Owner's fleet for service in San Diego, CA and surrounding areas.

Recent News
Seacor Smit, Inc. has completed acquisition of all the issued share capital of Gilbert Cheramie Boats, Inc. and related companies of Golden Meadow, Louisiana. The fleet consists of one newly delivered offshore supply vessel, fourteen mini-supply vessels (half of which delivered within the last five years) and eight utility vessels. Another offshore supply vessel is under construction and scheduled for delivery in April 2001. The transaction involved consideration of abt. $62 million paid in cash for all shares of voting and non-voting stock of the companies. Bollinger Shipyards, Inc., Lockport, La., has built three 145' supply/utility boats for Bordelon Marine, Inc., which will double the number of offshore support vessels (OSV) in the fleet of the Lockport-based vessel operator. Wes Bordelon, VP of Bordelon Marine, said, "We're like David competing with a bunch of Goliaths. That's why we have to be creative and work harder and smarter to serve our customers. As it relates to performance and safety, the quality of these vessels allow us to operate at the same level as the majors, while still being competitive on price. We've been successful over the last twenty years by not cutting corners and providing our customers with the best service possible. It sounds simple and cliché, but having quality crews and equipment at a reasonable price makes all the difference in the world. This was why we chose to have Bollinger build our vessels. We know that we are getting a proven, top quality vessel from the start, and this is what our customers need." The new boats, named after Bordelon family members will be the WES BORDELON, TERRY BORDELON and BUNNY BORDELON. Each will be 145' long with a 36' beam and maximum draft of 11.5'. Normal operating draft will be 8'. They will be powered by two Cummins KTA-38MO diesels rated @750BHP at 1600 RPM. They will drive 72"x57", 4-blade, stainless steel props through Twin Disc MG5301 gears with a ratio of 4.96:1. A 272 HP Schottel, STT-110 bow thruster will aid steering. The Cummins engines feature a "package" that meets new IMO (International Maritime Organization) emission standards with direct drive liquid mud pumps off of the main engines thereby eliminating belt systems. The boats' electrical power will be provided by two Cummins 6CTA8.36 diesels driving two Cummins 99 KW generators. Each of the new OSV's will be equipped with 4 liquid mud tanks with a total capacity of 49,332g. They will be able to carry 28,675g of fuel, 400g of oil, 250g of hydraulic fluids and 13,776g of potable water. Their large 95'x32' aft decks will carry up to 390LT cargo. Bordelon said, "When we informed our customers and crews about the new boats, some typical reactions were, 'I've worked a lot of boats, and I can tell you, Bollinger builds some of the best,' and, 'I've seen this design before and I think its going to be the perfect APV (all purpose vessel) for the future.'"

Marcon International, Inc. provides a wide range of consulting and brokerage services to the offshore petroleum, towing, and marine construction industries worldwide. Its clients include companies throughout the United States, Pacific Northwest and worldwide. The company is regularly called on to render expert opinion as to the value of vessels. Charters are also an important segment of its market.