Report : US Barge Transportation Market Forecast to 2028 - COVID-19 Impact and Country Analysis By Type (Liquid Cargo, Gaseous Cargo, and Dry Cargo), Barge Fleet (Covered Barge, Open Barge, and Tank Barge), and Application (Coal, Petroleum Products, Chemicals, Metal Products, Food Products, and Others)
Rise in Investments by the US Government to Improve Infrastructure to Provide Growth Opportunities for US Barge Transportation Market during 2021–2028
According to our latest market study on “US Barge Transportation Market Forecast to 2028 – COVID-19 Impact and Analysis – by Type, Barge Fleet, and Application,” the US barge transportation market is expected to grow from US$ 25,171.36 million in 2021 and is projected to reach US$ 39,833.44 million by 2028; the US barge transportation market is estimated to grow at a CAGR of 7.2% from 2022 to 2028.
Ports are an important part of the North American economy; however, obsolete infrastructure and the COVID-19 pandemic have put them under strain, which has jeopardized the global supply lines. According to the American Society of Civil Engineers (ASCE) 2021 Report Card for America's Infrastructure Report, ports in the Americas supported more than 30 million jobs and ~26% of the nation's GDP in 2018. The Biden-Harris administration funded Army Corps projects worth more than US $ 2.7 billion, focused on enhancing ports and waterways around the US in March 2022. President Biden's BIPARTISAN INFRASTRUCTURE deal will invest in transformative shovel-worthy projects which will revitalize other critical elements of the transportation infrastructure and supply chains of the US. Though this deal, the administration is also likely to make the largest federal investment in the port infrastructure and freight networks in the US. The US Department of Transportation (DoT) will allow port authorities to repurpose project cost savings to address supply chain issues. The Biden-Harris Administration is likely to use an additional amount of US$ 110 billion for the maintenance of roads and bridges, and for supporting transformative projects. Thus, initiatives by governments to strengthen their port infrastructure provide lucrative opportunities for the US barge transportation market growth.
According to the Global Infrastructure Outlook, more than US$ 2 trillion would be required every year as investments in transportation infrastructure through 2040 to support economic growth. Rapid urbanization, rising freight demand, and COVID-19 response stimulus plans put pressure on stakeholders in the US to accelerate infrastructure construction required for barge transportation. With the rise in freight activity in the US, air emissions from freight are likely to outpace growth in emissions from all other modes of transportation, including passenger transportation. Moreover, the US barge transportation market is likely to be benefitted from the increased trade needs for essential commodities due to the rising population, and consequently increased food and energy demands. CO2 emissions due to lower fuel consumption and increased cargo capacity further support the US barge transportation market growth.
The US barge transportation market is anticipated to grow significantly due to the intermodal transportation networks in the US, government initiatives to encourage water transport, and continued investments to upgrade the water transport infrastructure. In December 2021,?the?US Department of Transportation’s Maritime Administration?(MARAD) awarded US$ 12.6?million in grants to 9?marine highway projects under?America’s Marine Highway Program (AMHP).?The funding?aims to address the supply chain disruptions and enhance waterborne freight services in Delaware, Hawaii,? Indiana, Kentucky, Louisiana,?North Carolina,?New York,?New Jersey, Tennessee,?Texas,?and?Virginia. An additional US$ 25 million has been provided by the Bipartisan Infrastructure Law to support marine highway and waterways projects in the US. Allocating significant budgets for the port infrastructure development. Further, the US has increased navigable waterways to?relieve congestion?and?enhance its land transportation system performance through partnerships and collaborations with public and private stakeholders. This has increased the demand for cost-effective and high-capacity transport modes, such as barge-based waterways, compared to road, rail, and air transportation. These factors are driving the growth in the US barge transportation market.
Impact of COVID-19 Pandemic on US Barge Transportation Market
According to the Organization for Economic Cooperation and Development (OECD), ports in the US experienced a 7.3% drop in container volumes in the first few months of 2020 due to the shutdown of different activities across the US. However, the US barge transportation market coped well after the short-term disruptions caused by the pandemic. The grain supply chain in the country continued to operate irrespective of the COVID-19 pandemic, through more than 12,000 miles of marine ways and to ports of the Gulf of Mexico. The US Army Corps of Engineers continued to conduct business while keeping an eye on their operations to ensure the safety of their employees. As a strategic approach, the US economy is shifting toward lighter manufacturing and services from heavy industries and other goods transportation.
The report segments the US barge transportation market as follows:
The US barge transportation market analysis on the basis of type is divided into liquid cargo, gaseous cargo, and dry cargo. Based on barge fleet, the US barge transportation market is segmented into covered barge, open barge, and tank barge. In terms of application, the US barge transportation market is categorized into coal, petroleum products, chemicals, metal products, food products, and others.
Contact Us
Contact Person: Sameer Joshi
Phone: +1-646-491-9876
Email Id: sales@businessmarketinsights.com