Technology, market consolidation, decarbonisation, strict local content and regional regulations are impacting the tug and towage sector, delegates heard at Riviera Maritime Media’s 27th International Tug & Salvage (ITS) Convention & Exhibition in Dubai, UAE, on 21 May 2024.

ACL Shipbrokers managing director Alec Laing described the reasons behind rising demand for powerful tugs in the world’s ports and opportunities for owners in emerging markets. From his research and interviews with leading tug owners, Mr Laing highlighted hotspots in tug demand, such as supporting new LNG import terminals in northern Europe and port developments in Latin America.

There is rising demand for tugboats with conventional propulsion and marine gasoil in southeast Asia where “demand outstrips supply” and a region with “unique challenges” said Mr Laing.

He said Africa is an emerging market for tugs due to the number of port infrastructure upgrades, such as in Namibia and considerable population growth. “African ports could become the biggest in the world,” said Mr Laing.

Demand for high-power harbour tugs is also arising in Latin America and green tugs in western Canada.

P&O Maritime Logistics chief executive Martin Helweg outlined the main factors influencing the tug and towage sector. He said market consolidation is providing opportunities for new entrants, and the maritime industry’s drive to reduce greenhouse gas emissions is affecting future investment.

“With decarbonisation and different fuel sources it will be a changing landscape going forward,” said Mr Helweg. “Local regulations will impact towage. Local cabotage and content is on the rise – and will affect how the future of the towage market will look.”

He added tug owners should consider how to create value for customers, shareholders, people and communities.