Bouchard, like many private companies, will likely never survive Chapter 11. Eventual liquidation or the sale of the company is most likely.
Given current circumstances, Bouchard would have to compete on price, slash operating costs (crew wages) and leave a lot of its fleet tied up until market conditions improve.
Meanwhile highly paid lawyers, accountants, and court appointed managers are eating Bouchard’s lunch. They’ll milk this cash cow for all it’s worth until it drops.
Yup 100%, The minute all the available cash is gone everyone walks away. Bouchard as a company will never sail vessels in the oil trade again its too competitive.
They’ll do it super cheap, even at a loss to try and gain a toe hold back in the market.
Morty was only able to offer cheap prices because he owned everything outright, without stockholders. That will not be the case in the future, stakeholders and lenders will want their payments with interest. This means Bouchard will have to produce profits to stay afloat.
With better managed companies like Reinauer laying up equipment, and Vane struggling for market share, I don’t see it happening. I think the hole is too deep.
As the COVID-19 fades and petroleum product use returns utilization will come back, and there will be commercial pressure within the oil transportation majors on vetting departments to get as much US tonnage operational as possible… simple supply and demand and downward pressure for the price of tonnage, but the DOC is just the basic check the box qualification, then comes the TMSA and SIREs and the never ending individual customer audits. I have heard from reliable non-BTC sources that a few former customers would require a year of “clean” operations verified by audit under a new DOC prior to commencing business with BTC again. ABS may reconsider serving as RO if Morty is truly out of the picture (still too early to tell), but lets not forget that almost the entire fleet has had class suspensions and will need dry-docking and surveys and audits and half of the tugs still need to obtain COIs to commence operations (regardless of ownership). So the road forward is long and very audit intensive (read expensive) with limited chances to quickly regain revenue streams. Its a pretty big hole to dig out of.
Workboat has an add in their employment section. BTC is hiring all positions.
Rumor has it Deckhands are getting offered some terrible pay $150 a day.
I thought average deckhand pay is between $12-$18/hr.
ITOIL, Average pay deckhand/AB with a tankerman endorsement with a decent company is worth much more than that. Am of the opinion BTC will hold on the much newer equipment at all effort. May not be possible, but hopeful. Ain’t worrying about Morty, just the talent he had working for him. One of my pals is making over 400 per day as an ab tankerman. Good for him. Has a barbershop/salon near Daytona. Bike week has been very good to him and his bride. Good backup plan.
Rumor is the new Investor froze new hiring until they can figure out how to make money again
The good equipment needs to be sold to a reputable operator, and the junk equipment needs to be sold to Africa or Latin America or be scrapped.
A new name, very credible, experienced tug and oil barge management, and a lot of financing might turn the company around.
Overpaid court appointed financial managers without solid tug and barge experience who want to cut wages in half are just going to run what’s left of the company down the drain.
Not to sound like a jerk. But after all this , It wouldn’t be the same company. I know Kirby when they bought other boats. They would have every bit of the old paint sandblasted off
Kirby is already too big. There should be an antitrust suit to break it up.
I wouldn’t want to see Crowley buy any of the Bouchard equipment either. Crowley is big enough. They don’t need it.
I’d prefer to see a good smaller company(s)
grow by acquiring Bouchard equipment.
Kirby bought out Allied Towing, Ksea, and quite a few others. The existing contracts those companies had was more valuable than the vessels themselves. The Ksea equipment were quite a few older Maritrans units they purchased when Maritrans got out of the smaller units, almost half the fleet. What they (Kirby) got was (After purchasing them) was a lot of equipment in not the greatest shape. Cost them dearly in shipyard periods. I don’t believe if they purchase any Bouchard equipment will be for existing contracts, they have none. But they do have some good stuff that is modern, and usable. Some of the stuff is ready for the bone yard. Vetting/surveyor guy better be right, or he/she will get “Mortied”.
since I am a west coast person, I do not have much knowledge of who are the big and the little dogs in the oil barge business on the east and gulf coasts and who operates with longterm time charters and who is strictly spot market voyage charter operators. I also do not know where BTC used to fit in the market? Anyone care to enlighten me?
Yeah, Kirby ended up with my old ATB when they bought Allied. Finally scrapped it last year.
Just curious cmakin, which tug and barge? I worked there many moons ago, a local friend was working WH there around the time they were sold. Think Bill Law’s son Bruce was running it then.
The infamous SEA SKIMMER/PLAQUEMINE. I believe the tug was the SEA RAVEN by then.
Hat’s off to you sir. You absolutely had your hands full. I never worked the Skimmer, but “infamous” description is/was appropriate. Worked on the original “Sea Eagle” for my first AB job with Allied. Single screw 1800 HP Fairbanks direct reversible with a Kort nozzle. No autopilot. No tow winch. Don’t miss flaking 10" hawser. Last job I remember before I left towed the Liberty/Victory ship 'Betelgeuse" that grounded on Outer Banks on the way to being scrapped in Brownsville. Have a deep appreciation of where I started and where I ended. No regrets.
As a kid in his 20s, I certainly had some fun with that damn thing. I also surveyed it a few times when Kirby had it, before they sold it to Allied, and it was the DIXIE COMMANDER. I got to know the Dixie/Kirby CE on board and gave him a couple of tips that I learned the hard way. . . .
As you know, the mosquitos in Brownsville had to squat down to eff the turkeys. Getting closer to where we have crossed paths. Hoping Ex-Morty guys get back to work for whomever.