Dave Krapf Editor WorkBoat

Keeping up with the world

By David Krapf

The days when American OSV operators concentrated solely on the U.S. Gulf, and tug-and-barge operators only needed to keep up with domestic market developments are gone.

Now, in today’s era of globalization, everyone from offshore service vessel and tug-and-barge operators to shipyards must be aware of what’s going on in world markets.
Fast-paced growth in Third World nations has increased demand for U.S. grain, coal and other commodities, and the weak dollar has fueled an increase in exports leaving at U.S. ports.

In this month’s cover story (see page 50), we take a look at how changing world trade patterns are affecting how U.S. workboat operators do business. International trade is no longer dominated by the U.S. and other developed nations. By 2050, experts predict that China will pass the U.S. as the largest economy in the world.

Globalization is already having a big impact on the U.S. marine industry. Not only are more workboat companies increasingly tied to the vagaries of international trade, but it is also putting more pressure on ports and our antiquated inland lock-and-dam system.

But there are big pluses, such as creating more opportunities for container-on-barge and other services. Osprey Line, a Houston-based container-on-barge operator in the Gulf, has seen demand for its service rise and fall with export and import volumes. Also, as a result of the weak dollar, the company has seen a boost in exports handled. Others, such as MEMCO and Ingram, have also benefitted from the dollar’s lack of strength, which has helped boost demand for export coal.

Perhaps the best example of the globalization push is the OSV industry. Operators such as Tidewater and Trico Marine no longer have all their eggs in one basket. Tidewater is now an international operator with a presence in the U.S. Gulf. Tidewater’s international operations accounted for almost 90 percent of its revenues in the fourth quarter of 2007, and Trico relocated 13 vessels overseas last year, 20 percent of its fleet.

Globalization will continue to affect the U.S. economy and the workboat industry. Companies that take advantage of the resulting opportunities and recognize future competitive threats will end up winners in the long run.

David Krapf
dkrapf@divcom.com

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