$30 Million Buoy Contract Awarded

Towing industry sources report that the Coast Guard awarded a $30 million contract two weeks ago to H&G Marine Services Inc., for about 4,000 buoys.  The buoys should arrive at the beginning of November, according to a message to members of The American Waterways Operators by Lynn Muench, AWO senior vice president-regional advocacy. 

As unusual low water has led to more dredging than usual, “the Coast Guard has brought resources in to ensure buoys are at the right place at the right time,” Muench said. “‘All hands on deck’ is the message from District 8 to the [Coast Guard] sectors.” 

There are about 24,000 aids to navigation and 15,000 inland fixed buoys in the Eighth District’s area of responsibility. Keeping them on station is a never-ending battle. How many need to be replaced—the buoy “burn rate”—depends on dredging, water levels, weather, storm activity, collisions and breakaways.

Last November, the Coast Guard allowed its aids to navigation (ATON) contract with H&G Marine Services to run out, at a time of concerns about the cost of steel, whose price was skyrocketing due to COVID and supply-chain issues, among other things. In September 2021, hot-rolled coil steel prices hit almost $2,000 a ton. In March 2022, HRC prices rose another $435 per ton in just 31 days.

By the week of September 28, steel prices had dropped to $790 a ton and were trending lower. The World Steel Association said it expects global steel demand to fall by 2.3 percent this year to 1.797 billion tons, a downward revision of 0.4 percentage points from its April forecast as soaring energy prices, rising interest rates and strict COVID lockdowns hampered industrial and construction activity worldwide. 

Major iron ore producer Rio Tinto reported a drop in ore sales as demand from top steel consumer China declined sharply, challenged by spotty power rationing and an unstable property market.