Marine Support Services
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 2,000 marine support services firms in the US include companies that operate ports, harbors, and canals, as well as companies that provide marine cargo handling and storage services. The industry also includes companies providing navigational services, such as piloting or tugboat services, and marine salvaging services.
Dependence on International Trade
Revenue for marine support services is driven by US imports and exports, which in turn depend on global economic conditions and international trade agreements.
Automation of Operations
As cargo volumes increase and ships get larger, marine terminal operators face challenges in quickly loading and unloading cargo to avoid congestion and delays for shippers, truckers and railcar operators.
Industry size & Structure
The average marine support services company operates out of a single location, employs 47-48 workers, and generates $11-12 million annually.
- The marine support services industry consists of about 2,000 firms employing 94,000 workers and generating around $22.6 billion annually.
- About 360 commercial ports in the US and its territories handle 2-3 billion gross tons of cargo annually.
- About 41% of industry establishments provide navigation services, while 13% provide marine cargo handling services and 13% provide port operations services.
- The top US ports, based on volume of twenty-foot equivalent units (TEUs) handled include Houston, New York/New Jersey, New Orleans, Long Beach, Port of Virginia, Charleston, Miami, Seattle, and Los Angeles.
- The industry is concentrated, with the 50 largest firms accounting for 67% of industry revenue.
- Large companies include Ports America, APM Terminals (headquartered in the Netherlands), and SSA Marine.
Industry Forecast
Marine Support Services Industry Growth
Recent Developments
Jul 16, 2024 - Tonnage Increases
- US waterway tonnage increased 0.2% year over year and 8.1% month over month in March, according to the US Bureau of Transportation Statistics. Marine support services slightly increased their prices during the first five months of 2024, according to the US Bureau of Labor Statistics (BLS). Marine support service industry employment increased slightly during the first five months of 2024, according to the BLS. Marine support service industry sales are forecast to increase at a 4.32% compounded annual rate from 2024 to 2028, faster than the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
- Containerized imports to the US increased substantially during January, February, and March from the corresponding months of the previous year, up 10%, 21%, and 23%, respectively, according to The Waterways Council. The first quarter is typically the slowest period for containerized imports. Importers anticipating additional disruptions in the Red Sea and potential disruptions due to global political instability are focusing on replenishing retail inventories and preparing peak season stocks, according to The Waterways Council. Marine support services may benefit from the import surge.
- Global goods trade is expected to increase gradually in 2024 following a contraction in 2023 that was driven by the lingering effects of high energy prices and inflation, according to the World Trade Organization. The volume of world merchandise trade is expected to increase 2.6% in 2024 and 3.3% in 2025 after falling 1.2% in 2023. Regional conflicts, geopolitical tensions, and economic policy uncertainty pose substantial downside risks to the forecast, however.
- Attacks on cargo ships in the Red Sea and drought affecting the Panama Canal have created a “perfect storm” of disruption in global shipping, according to Mike Giambrone, an account executive at logistics provider OEC Group. The Red Sea is a critical shipping lane for cargo traveling through the Suez Canal, which accounts for about 12% of global trade, according to Giambrone. Approximately 30% of global container traffic traverses the Suez Canal, transporting $1 trillion of goods per year, according to the Government of New Zealand. Drought conditions in the Panama Canal, worsened by a severe El Nino, have severely impacted container ship traffic through that key trade route. The Panama Canal accounts for about 7% of global seaborne trade, according to the Wall Street Journal. “It’s really the East Coast and Gulf Coast markets that are going to see the results of this,” Giambrone said. He noted that when there’s a problem on the East Coast, shippers can transfer their capacity to the West Coast, but this can bring additional problems. Giambrone cited the post-COVID shipping surge that resulted in “a parking lot of container ships” at West Coast ports in 2021. Some ships were diverted to the East Coast to ease the congestion. “Then the East Coast started having serious congestion.”
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