Light Commercial Fleet

Packed with potential

Most Simrad electronics for light commercial vessels are the same as those built for recreational boats, but some have built-in features such as SAR grid search patterns. The slice of the market which is suitable for Simrad products is estimated at $130 million in the US and $500 million worldwide.

River tugs primarily depend on their radar and AIS units. Just about all of the big tugs have large radars—25kW and 9-foot antennas,” says Allen Schneider, Partner and Vice President of SI-TEX Marine Electronics. “Smaller ones may have 4 to 6-foot antennas and 12kW. They prefer high power because the current can lay buoys down flat and make them hard to see. More power makes spotting them easier. Also, larger radar arrays have a narrower beam angle, which allows them to see the whole river and its nuances rather than just a slit on the screen.” SI-TEX commercial electronics carry the Koden brand.

Towboats also have swing meters—rate of turn indicators—which are very sensitive and act something like a gyro to tell the captain the vessel is turning, likely a result of the current, before he’s even able to detect it. Some towboats are equipped with new GPS compasses, which are accurate enough to also provide swing information. He points to the widespread use on inland commercial vessels of Rose Point’s ECS navigation software, which provides many features to assist operators, including automatic delivery of Notices to Mariners and chart updates as long as the boats have Wi-Fi and internet access.

Shape and size of the fleet
Defining the parameters of the US light commercial market is difficult because of the diversity and number of vessels involved. But whatever specific purpose they’re designed for, the end game is straightforward—to make money for the owner, or at least that’s the plan. Typically, they aren’t bound by requirements such as SOLAS (Safety Of Life At Sea) and IMO (International Maritime Organization) equipment carriage and operational regulations that govern many larger commercial vessels.

Koden supplies many of the commercial radars used by towboats, such as this 25kW radar with a 9-foot scanner. High-power radars allow operators to better see buoys that are laid down flat by the current and details along the river.

That’s different than in Europe, where more certification is required, according to Stephen Furr, Simrad’s Business Acquisition Manager, Professional Marine. For example, he says, “A 35-meter tug in the US typically may be fitted out mostly with recreational equipment. In Rotterdam, that same tug will utilize mostly IMO-regulated products aboard.”

“The US has a vast network of inland waterway, coastal and river vessels that are not IMO vessels because they don’t go transoceanic—they’re always in US waters where different regulations apply,” says Raymarine Marketing Manager Jim McGowan.

Furuno Deep Sea Product Manager Bill Haynes adds that, “If you’re talking about just commercial boats on the Mississippi River, there are 5500 towing vessels, and almost all of them have commercial radars.”

Describing the size range of vessels that are included in the light commercial category varies depending on who is asked. A better way to get a sense of this is simply to list some of the vessel types. In addition to those already mentioned above are harbor tugs and ferries, water taxis, spill response and environmental cleanup boats, offshore service vessels for wind farms, commercial fishing vessels, small tankers, powered construction/maintenance barges and others. A large and steady segment is coastal Jones Act vessels, which includes ATBs—articulated tugs and barges. The federal law requires cargo transported between US ports to be carried aboard US-flagged vessels.

Some of the people we talked to include first responder vessels in the light commercial fleet—law enforcement, fire, search and rescue (SAR) and various federal/state agencies—while others put them in a separate category.

Furuno has been a major player in the commercial market for years, including the light commercial sector. Deep Sea Product Manager Bill Haynes says there are about 5500 towing vessels on the Mississippi River alone.

What’s the value?
Trying to assess a dollar value on the domestic light commercial sector is difficult as well. Furr says the portion of that market which is suitable for the company’s products is about $130 million and some $500 million worldwide. About 90% of Simrad electronics that are sold into the market are the same products built for recreational boats but may have some advanced features built in, such as SAR grid search patterns. Furr describes the market as steady, even though they haven’t seen the expected growth in wind farm support vessels, at least not yet. Simrad currently does not target the towboat “brown-water” sector. “The revenue potential grows but not necessarily the volume sold into the market,” Furr says. He credits some of this to younger captains who are tech-savvy users and encourage owners to buy advanced higher end electronics outside of normal refit cycles because they want the latest technologies.

Players in the market
Raymarine and FLIR are pursuing the light commercial market as well. “We see a lot of opportunity there,” says McGowan. The company introduced their first IMO radar, called Pathfinder, at the WorkBoat Show late last year. Raymarine is targeting the inland, coastal and Great Lakes fleet with the radar but says Pathfinder also meets SOLAS requirements for some boats. “It’s our first electronics designed specifically for commercial applications,” says McGowan. Pathfinder has a 6-foot open array scanner; its Axiom 2XL display is limited to radar functions only.

“Pathfinder is only the tip of the iceberg there’s lots more coming,” says McGowan. Acquisition of ChartWorld International last year is a major part of their move into the market. Beyond cartography, ChartWorld also makes ECDIS systems for larger vessels, which are made available to commercial marine subscribers to ChartWorld’s software service. “We’ve very excited to have those capabilities in house,” he adds.

Raymarine has been somewhat involved in light commercial sales for two decades. They significantly notched up their visibility in the non-recreational world through multimillion dollar contracts in 2017 and 2018 to supply the US Coast Guard with Scalable Integrated Navigation System equipment followed by a second-generation encrypted text and data messaging system.

Garmin is putting a larger focus on the sector also. “Historically, Garmin has been seen as recreational. Even so, many commercial boats have our electronics aboard,” says Senior Director of Marine and RV Sales Dave Dunn. “When it comes to SAR, LiveScope is one of our most impactful products because it can find lost objects [and bodies of victims]—it has helped solve cold cases 20 years old.” He says when they started exhibiting at the WorkBoat Show 10 years ago, they had limited response from first responders attended the event. “Last year we were inundated with questions about LiveScope from SAR guys.”

Dunn says they’re having success selling equipment to vessels that don’t require SOLAS and IMO certifications. “Our GPS, radar and sonar modules fit their needs perfectly. Our DNA is GPS and navigation—that’s the tip of the spear for us. But we also have a robust charting base, radars, AIS and communications. We have lots of irons in the fire to chip away at that market.”

Raymarine is actively expanding its involvement in the commercial fleet, providing electronics for vessels like this water taxi. The company introduced their first IMO radar, called Pathfinder, late last year. Although the radar is tailored for coastal, inland and Great Lakes vessels, it also meets SOLAS requirements for some boats.

Regs and more regs
Furuno has been the big dog in commercial marine electronics for decades and owns a significant market share worldwide of that business, according to Haynes. The company’s involvement in the US commercial sector began back in the early 1970s and still extends way beyond light commercial to include large ships of all sorts. He says from Furuno’s perspective, the overall light commercial sector is growing.

Haynes says that although SOLAS and IMO regulations don’t normally apply to light commercial vessels, the boats must comply with US federally mandated maritime regulations. The overall regulation is the Coast Guard’s 33 CFR 164.72, which covers “navigational safety equipment, charts or maps and publications required on towing vessels.” Included are FCC telecommunications requirements (47 CFR Part 80) and radar rules developed by RTCM, the Radio Technical Commission for Maritime Services. There are also sections regarding magnetic compasses, depth sounders, GPS and charts.

Additionally, the Coast Guard offers its Navigation and Vessel Inspection Circular 01-16 CH2—more popularly known as NAVIC 01-16—which provides “guidance” for US vessels and carriage of electronic charts in lieu of paper charts, maps and publications. Haynes boils down the guidance to the carriage of ECDIS, chart radars and ENCs (Electronic Navigational Charts).

For marine electronics technicians and other service talent who work on some commercial vessel types, there’s TWIC—Transportation Worker Identity Card. Issued by the US Transportation Security Administration (TSA) and the USCG, it gives access to secure maritime facilities, such as ships, ferries, tugs, dockside warehouses and so forth. Card holders must pass a TSA security assessment.

Schneider says techs need the card to get into certain areas where a vessel is docked. “It’s not like you can just pull up to dock in your service van and step aboard.”

Onboard electronics
As for electronics installed on light commercial vessels, Haynes says captains often prefer commercial-grade equipment and systems to electronics designed for recreational use. He adds that some commercial electronics can bridge between the two markets, such as Furuno’s type approved SC70 heading sensor and FA-170 Class A AIS.

Haynes explains that many commercial vessel skippers are graduates of maritime academies where they’ve been trained in the use of professional radars, ECDIS (Electronic Chart Display and Information System) and GMDSS (Global Maritime Distress and Safety System) and choose them over typical recreational devices. He cites two examples: a multi-state towing company in the Pacific Northwest that is “totally fitted out with commercial electronics—radars, ECDIS, sounders, speed logs, voyage data recorders—even though they’re not mandatory; and the National Spill Response Corp., which has installed professional electronics on their vessels because, he says, they’re looking for longevity—12 to 15 years—and that the equipment is “upgradable, repairable and offers a higher level of safety and standardization.”

Garmin’s Dunn counters that, “Ease of use is in our DNA. Compared to some of the commercial products, they may do more than ours do but they’re harder to use. In many cases, commercial boats have Garmin units as backups that get used more than the others.” He says Garmin’s goal is to get more involved in the light commercial market over the next few years. “When we come out with new products, we keep that in mind feature-wise.”

Raymarine’s McGowan says, “Commercial electronics tend to be a little different than recreational equipment once they get beyond a certain size. There are regulations like the minimum size of radar screens for passenger vessels and towboats. Sometimes radars must have a minimum set of features. For example, the ratio of screen size to data display area or they must show so many range rings simultaneously. Some recreational electronics carry this over but not all.” He adds that the display specifications often eliminate recreational monitors from commercial use simply because they’re too small.

Another unusual application of electronics by the brown-water fleet is the installation of multiple transducers on poles mounted on corners of barges that push depth and river bottom data to sounder displays in the wheelhouse. The transducers are designed to break away and be easily replaced if the barges scrape bottom.

For first responders, side-scan sonar is an important technology for locating and recovering victims as well as vehicles and other objects. Fireboats typically sport thermal imagers to help pinpoint hotspots inside vessels.

Communications gear is also an important component for the light commercial fleet. “It’s a stable market for us—there’s a lot of traffic up and down the waterways and VHFs are very important,” says Icom Senior Sales Manager Ray Novak. He adds that, “All our radios are designed and built to US military specifications—commercial buyers are looking for durability.” He says their two main fixed-mount radios for the light commercial market are the M605 and the new M510 Evo with a two-way hailer/PA function.

For portables it depends on the use: “The M85 and M73 are longtime favorites—both have intrinsically safe environments. The M85UL has the latest ratings. The M85 incorporates 2-watt land mobile channels,” says Novak. Intrinsically safe VHFs are designed to operate “spark free” in potentially explosive situations.

Standard Horizon National Sales Manager Hans Rooker says they supply a lot of HX400 programmable marine/land mobile handhelds to the market as well as intrinsically safe radios to operators of fuel barges and other hazardous materials carriers. He says sales to first responders, river tugs and offshore vessels are a major part of their business. “Most of that is through commercial dealers who serve only commercial customers. Some deal with only special sectors, especially in the Gulf and brown-water vessels.”

Knowledgeable installers
Koden electronics typically are more sophisticated than those on recreational boats, says Schneider. “They need to be installed by someone who knows what they’re doing. The electronics have features the recreational user doesn’t need—like adjustments on our professional fishfinder for different transducer setups. Also, installing scanning sonar requires some serious modifications to the boat.”

He adds that many times commercial guys don’t put as much equipment aboard as recreational boaters. “Just the basics, maybe two of everything—radar, nav, depth finders, communications, autopilots in some cases.” They’re also quickly adding Starlink satellite communications systems onboard these boats, even those that didn’t have satcom equipment before.

One interesting challenge for techs is the logistics involved if they’re called in to service a towboat that is actively moving loaded barges. The tech must hop aboard the vessel and make the repair while it’s still underway in order to avoid a stop—and a delayed delivery. Accomplishing this means arranging to be at a location up ahead, tools and parts in hand, where the tech can hop a ride to the tug, make the repair and then arrange to get off and back to the shop.

Supply and service chains
Koden and Furuno sell their commercial products only through commercial servicing marine electronics dealers. “Our products have high reliability and we provide full support,” says Schneider. “We don’t normally deal with boat builders. We stay with the servicing dealers. In some cases, we’re still helping to service equipment from 20 years ago. Commercial vessels operate their radars 24/7 in many cases; they need to be able to be repaired after the warranty period ends—and replacing their radars is not that simple.”

Haynes says many commercial dealers have service networks that allow them to work together to provide whatever is needed where the vessels tie up. “Training to deliver proper installations and service is key, especially with respect to integration and sensor redundancy.

Installers need to know how to connect radars to ECDIS, and also make sure that multiple sensors (speed, GPS, heading, AIS) are managed correctly for redundancy and safety. We offer training seminars to commercial engineers. They need to know how to repair and replace equipment, update software, and what spare parts to identify and replace when needed.”

Furr says the supply chain for light commercial is different than it is for larger vessels, where products move through traditional channels involving dealers and integrators. For first responders and other local agencies, electronics sales often happen at the retail level. Others dealing with federal and state sales may require responding to requests for bids.

Garmin’s approach is similar, involving bidding as well as more direct sales, where municipal agencies provide budgets for first responder crews to purchase electronics at retail stores or online. Sales also occur through boat builders with Garmin acting as a third party.

“Some of our dealers have at least part of their business focused on light commercial, especially in Florida where they serve municipalities,” says Dunn. “But even if electronics are bought through OEMs, any of our dealers can support our products. We leverage our dealers as much as possible. We see them as an extension of Garmin to make sure the boats are kept up and running, whether it’s SAR, fireboats or whatever. If they’re out of service because of our products, that’s not good.”

Getting involved
“A lot of guys on the rec side think moving into commercial is no big deal. It is—it’s a different world,” says Schneider.

For anyone considering making that move, Haynes offers this advice: “Educate yourselves about products and the regulatory environment, especially 33 CFR-164. If you’re going to work on vessels going internationally, understand SOLAS requirements, classification society requirements and have an FCC General Radiotelephone and a GMDSS Maintainer’s License. You need legitimacy with customers. You need to establish legitimacy with customers and be knowledgeable about commercial equipment—how it works—and about how they meet the appropriate regulations. And customers want familiarization training. You can’t just hand them a manual.”