Global Barge Transportation Market 2024-2031

Global Barge Transportation Market 2024-2031

Global Barge Transportation Market Size, Share & Trends Analysis Report by Products (Dry Cargo, Liquid Cargo, and Gaseous Cargo), by Barge Fleet (Opened, Covered, and Tank Barge), and by Application (Coal and Crude Petroleum, Agricultural Products, Coke and Refined Petroleum Products, Metal Ores, Secondary Raw Materials and Wastes, Food Products, Beverages, and Tobacco, Basic Metals, Fabricated Metal Products, and Others) Forecast Period (2024-2031)

Global barge transportation market is anticipated to grow at a CAGR of 3.7% during the forecast period (2024-2031). Government regulations on emissions and an increasing emphasis on reducing carbon footprints are forcing businesses to transition to more ecologically friendly barges and vessels. Barges can reduce wear and tear on infrastructure and traffic congestion.

Market Dynamics

Growing Economic Growth and Trade Patterns

The growth in the economy increases consumer demand, which in turn drives more freight and barge traffic. Inland waterway flow is influenced by both domestic and international trade patterns, which in turn affect market dynamics. According to the Waterborne Competitiveness US and Foreign Investments in Inland Waterways article, in May 2022, the inland waterway supply chain plays a significant role in supporting the economy, with over 540,000 jobs and the transportation of more than 500 million tons of freight annually. This freight activity encompasses a variety of goods, such as petroleum products, aggregates, coal, and grains, accounting for approximately five percent of the total commercial tonnage shipped in the US.However, due to the need for faster shipping times, high-value goods or containerized freight are rarely transported through the inland waterway system, as it requires inland transloading.

Technological advances in fuel transportation innovation

Barge transportation has emerged as a competitive choice in the transportation business owing to technological improvements including automation, digitization, and alternative fuels that improve operating efficiency, safety, and environmental performance. According to the article Institute for Transportation and Development Policy (ITDP), in January 2024, transportation in the US is one of the highest annual consumer expenditures, accounting for $1.6 trillion. Spending on transportation increased by almost 30% between 2020 and 2021, with the purchase of vehicles accounting for the majority of the rise. The shortage and demand for gasoline caused a 25% increase in price, which led to inflation. Despite the high costs of owning and maintaining a private vehicle, 93% of average households' transportation expenses go towards buying, maintaining, and operating cars.

Market Segmentation

Our in-depth analysis of the global barge transportation market includes the following segments by product, Barge Fleet,and application:

Based on products, the market is sub-segmented into dry cargo, liquid cargo, and gaseous cargo.

Based on barge fleet, the market is augmented into opened, covered, and tank barge.

Based on application, the market is sub-segmented into coal and crude petroleum, agricultural products, coke and rrefined petroleum products, metal ores, secondary raw materials and wastes, food products, beverages, and tobacco, basic metals, fabricated metal products, and others (pharmaceuticals, chemicals rubber & plastic, nuclear fuel).

Dry Cargo Products is Projected to Emerge as the Largest Segment

Based on the product, the barge transportation market is sub-segmented into dry cargo, liquid cargo, and gaseous cargo. Among these, the dry cargo sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes the increasing demand for reputation and competitiveness of barge transportation businesses can be improved by complying to industry and regulatory standards. This can engage clients, establish confidence, and promote long-term business partnerships. For instance, in December 2023, BIMCO launched new Dry Bulk Cargo Network.The network aims to facilitate informal discussions among professionals about dry bulk cargoes carriage requirements, focusing on understanding the International Maritime Solid Bulk Cargoes (IMSBC) Code.

Tank Barge Sub-segment to Hold a Considerable Market Share

The requirement for operators to invest in purpose-built vessels for specific cargo varieties and trade routes is indicated by the market demand for specialist vessels, particularly tank barges for the transfer of petroleum products. For instance, in May 2018, Okskaya Sudoverf Shipyard delivered the first non-self-propelled tank barge of Project ROB20, Belmax 1, to PAO STLC. These barges are designed for petroleum product transportation with a flashpoint of 610°C and above, and featured double sides and double bottoms for improved environmental hospitality.

Regional Outlook

The global barge transportation market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America).

North America

The petroleum products can be transported in an economical and adaptable manner via barge transportation, that allows suppliers and shippers to offer alternate routes in response to changes in the market.

Furthermore, according to the American Geosciences Institute, in June 2018, the US of America boasts an extensive transportation network that includes rail trains, tanker trucks, vessels, barges, and millions of miles of oil and gas pipelines. Large amounts of natural gas, refined goods, and oil are also imported and exported via ship and pipeline. With over 200,000 miles of pipeline devoted to transporting crude oil, 300,000 miles for gathering and transferring natural gas, and 2.2 million miles for distributing gas to residences, commercial buildings, and industrial sites, pipelines account for over 90% of the transportation of crude oil and refined petroleum products.

Asia-Pacific Holds Major Market Share

Among all the regions, Asia-Pacific holds a significant share owing to the transportation services such as barge transportation are required for the moving of coal owing to increased industrial use of coal, especially along waterways and coastal routes. According to the IEA – International Energy Agency, in July 2023,the IEA's mid-year Coal Market Update states that in 2022, coal consumption increased by 3.3% to 8.3 billion tonnes, identifying a new record. The analysis projects that rising industrial coal use has the potential to make up for modest drops in coal-fired electricity output in 2023 and 2024. 30 of 4 tons of coal burned globally are anticipated to come from China, India, and Southeast Asian countries. The demand for coal increased slightly in the European Union in 2022. The demand for coal is predicted to have increased to 4.7 billion tons in the first half of 2023, a 1.5% increase. In 2021, China and India constituted two-thirds of the globe's consumption.

Market Players Outlook

The major companies serving the global barge transportation market include, Ingram Marine Group,Kirby Corp.,SEACOR Holdings Inc., American Commercial Barge Line LLC,Campbell Transportation Company Inc., and others.. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in February 2024, Centerline Logistics acquired JMB Shipping, it expanded fleet equipped with over three million barrels of liquid tank barge capacity company’s Logistics photo.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global barge transportation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.