The World Sees Massive Demand for New Tugs
01 Jun 2007
The worldwide demand for new tugs has reached unprecedented levels, with industry pundits quoting a global total in March of approximately 600 vessels on order.
At no time in its 175 year history has the tug business experienced such an intense and sustained period of new construction.
Specialist shipyards around the world are reporting a level of demand that even the most efficient yards are finding difficult to meet, without quoting unacceptably long delivery dates. The current extreme situation, that first became apparent in 2006, is also having a significant ‘knock-on’ effect among engine and propulsion system manufacturers and other major components suppliers.
The present climate of high demand has developed over at least two years and indications are that it will continue for some time. There is no single, identifiable, reason for this unprecedented rise in demand. In the market for shiphandling tugs, the area of greatest activity, one of the most obvious factors driving demand is a massive shift towards powerful, compact, tugs designed to be operated by crews of only 2 or 3 persons. This trend is promoted by continuing pressures on tug owners for more powerful tugs while insisting on competitive towage rates. Many owners are seeking to reduce costs by employing modern, efficient, ‘state of the art’ tugs with lower manning and operating costs.
There is also a cyclical element, governed by the need to replace aging and out of date tonnage. The mid-1970s saw a period of prolific building for fleet upgrading and replacement in Europe. Surviving vessels from that era are now 30 years old, generally outdated, and in need of replacement. Refurbishment, which must result in less manpower, is generally considered uneconomic, particularly in the field of additional engineroom automation.
The appearance of new tug designs and technological improvements in propulsion machinery continues unabated. Tug owners now have a greater choice than ever before when trying to find replacement tonnage to match the needs of their particular business. Shiphandling tugs are still becoming fewer in number, undoubtedly more powerful and more agile.
Shipping industry demands for tugs to deal with specific trades are also driving the current manic quest of suitable new tonnage. For many years the container sector has seen a steady increase in the size of its ships, and in spite of improved handling (powerful bow and stern thrusters etc) there remains a growing demand for tugs to be upgraded. This is particularly the case where the approach channels of berths are difficult or prevailing wind and tidal conditions increase the need for tug assistance. Similar conditions apply in the car transportation business.
A shift in the energy market towards Liquid Natural Gas (LNG) and the need to transport it by sea in large purpose built carriers has placed added and quite specific demands on the towage industry. Tugs currently being procured to service new and often long-term contracts, at both importing and exporting facilities, invariably have to meet a very high specification in terms of power, handling and additional equipment. Static bollard pulls of between 80 to 110 tons are being quoted, along with full escort capability and a comprehensive fire fighting capability. It is for just this type of operation that many new hi-tech designs have been conceived.
Other sectors of the towage industry are also suffering the effects of the current glut of orders. Many offshore operators are replacing outdated vessels in order to remain competitive in a market where greater capability is demanded from anchor-handlers, multi-purpose construction and ROV vessels, and platform supply ships. Offshore exploration and production is moving into sea areas which are increasingly remote and that require vessels capable of performing in water of greater and greater depths.
Building berths in specialised shipyards are at a premium and operators are increasingly looking to the Far East for acceptable delivery dates and competitive prices. Large specialist tug builders, once able to able to offer vessels from ‘stock’ within weeks are suddenly bereft of spare hulls and pre-fitted vessels. It is interesting to peruse the lists of tugs under construction. In parts of the Far East, it seems that every small shipyard with spare capacity also has tugs under construction.
Major specialist builder Damen Shipyards, a business that focuses predominantly on series construction of standard designs, reports over 170 vessels under construction to between 12 to 15 different designs. Of these, a large proportion are to fulfil orders and others are notionally for ‘stock’. The Damen Group comprises some 40 shipyards and other companies are increasingly responsible for the manufactures of many major assemblies such as stern gear, nozzles, winches etc. Well known Vancouver based, naval architect and designer Robert Allan estimates approximately 200 tugs on order or being constructed to designs from his company, Robert Allan Ltd, in yards worldwide, 50 of which will be built this year. Many of the latter are hi-tech terminal tugs of various types.
For many operators the supply of engines and other major components is also providing a challenge. Some owners, able to foresee a problem, purchased their engines of choice and stored them until a suitable building ‘slot’ became available. Others, where delivery dates were critical, have had to accept a mix of machinery, where previously commonality would have been a predominant concern.






