Breakbulk carriers

Hyundai Glovis has teamed up with HMM and Seaspan to spend almost $1.5 billion on new dual-fuel pure car and truck carriers as demand continues to surge in the ro/ro sector.

Low water restrictions and “exorbitant” costs for rare transit slots through the drought-hit waterway mean tramp breakbulk and heavy-lift carriers must use longer ocean routes, thus increasing voyage costs.

The service was previously operated on an ad hoc basis but is being upgraded due to growing demand for breakbulk and project cargo into the US West Coast to avoid restrictions and delays through the drought-hit waterway.

While long-term optimism supports the MPV market, industry analysts see short-term divergence in time charter rate averages.

The aim of the venture is to broaden the scope of the companies’ current operations, both geographically and in vessel size.

The phased reduction in the number of transits coincides with peak banana exports from Ecuador and the start of the deciduous fruit season in the southern hemisphere.

Commodity prices continue to rise, leading to further investments in mining, agriculture and oil and gas projects, all of which is good news for breakbulk and project shippers and their service providers.

Although there is little evidence that EVs are a greater fire hazard aboard ro/ro ships than traditional internal combustion vehicles, carriers are ramping up their safety measures.

The funding shortage for breakbulk port facilities will create severe constraints on both cargo owners and vessel operators as offshore wind construction accelerates and new types of energy projects are developed.

Multipurpose owners and operators are growing increasingly wary of the breakbulk market’s downward trend as cargoes remain hard to find and the wind energy market falters.

Toepfer’s multipurpose index has maintained its downward momentum due partly to a delay in the emergence of wind cargoes, while Drewry’s index showed some signs of life following a summer dip.

MPV newbuildings are being designed for higher cargo intake and improved efficiency, but any consensus on green fuels and propulsion systems remains elusive.

Affiliated carriers Intermarine and Jumbo-SAL-Alliance are poised to reap new cargo from the expected growth boom in South American mining, green fuels and wind.

Despite having fewer cargoes for which to compete, some bulk operators are beefing up their staff of project cargo specialists, implying that those carriers are sensing opportunities ahead.

Newbuilding investments in the multipurpose and heavy-lift fleet will be crucial to the global push to decarbonize energy.

Breakbulk carriers and their clients must prepare for the EUs new emissions trading system before the Jan. 1 start

Weak construction and manufacturing demand, inflation fears and continued economic uncertainty are weighing on global steel volumes, a key commodity for multipurpose vessels.

Although the multipurpose vessel market is expected to further soften on weak charter activity in the third quarter, firmer demand is expected by the end of the year, keeping certain sectors of the market — mainly, project carriers — optimistic, analysts said.

Expected demand for wind cargo, among other factors, is still driving underlying optimism in the MPV sector, but a wind turbine tech “arms race” could cast a long shadow.

If the reefer mode can tough out the rest of 2023, next year should be better for operators largely because there will be more cargo, and therefore demand will be stronger, writes analyst Richard Bright.

The merger of wind installation vessel operators Cadeler and Eneti, which already have a combined project backlog worth $1.75 billion, was driven by an expected surge in offshore wind farm projects through 2030, Cadeler CEO Mikkel Gleerup told a webinar Friday.

Sentiment is more positive in the longer term, with industry observers predicting a rebound in rates from 2024 onwards due to stronger cargo volumes and tight tonnage supply.

Norden is looking to capitalize on an expected strong project and breakbulk market with the purchase of Denmark-based multipurpose vessel (MPV) operator Thorco Projects.

Visionary shipping legend Bertram Rickmers created the Pearl String, the only round-the-world breakbulk liner service, which operated from 2003 until the fall of Zeamarine in 2020.

Traditional 3PL provider CEVA plans to lease four new hybrid ro-ro vessels chartered by parent company CMA CGM.

Multipurpose and heavy-lift carriers expect short-term rate pain but a rising market further out, analysts say.

Cargoes “unboxed” during the pandemic market are sliding back to container carriers on the hunt for volumes to fill their ships, while excess containers on MPV ships have disappeared.

Tim Kopfensteiner will become president of MPV carrier BBC Chartering’s US operations following Per Petersen’s retirement later this year.

Breakbulk and project cargo carriers are likely to take their cue from container carriers before committing to building alternative fuel ships to meet aggressive carbon reduction mandates, experts say.

Multipurpose carrier analysts report short-term rate softening and a looser spot market, but there is confidence in longer-term energy and renewables demand.

Vehicle demand is expected to offset declining high-and-heavy volumes in 2023, according to car carriers.

New operator Swire is growing its fleet and gearing up to move cargo for the busy Australian minerals and energy markets.

MPV and heavy-lift vessel owners need clarity on emissions, alternative fuels, and regulations before committing to new vessel schemes.

Despite a temporary lull, heavy-deck carriers and industry analysts see a “mind-boggling” outlook for global offshore wind demand.

Breakbulk industry executives warn new rules aimed at reducing vessel emissions could incentivize vessel operators to implement measures that increase emissions in other areas of the supply chain.

The MPV sector’s market correction appears to have bottomed at rates still healthy for owners and carriers, even as the sector feels pressure from minor bulk carriers hunting for cargo.

While market indicators such as relatively high charter rates and a strong demand outlook are promising, the Netherlands-based maritime consultancy says the stability of the breakbulk market is by no means guaranteed.

Short-term uncertainty and longer-term confidence are the multipurpose sector’s new normal, analysts say, after the extreme volatility of the COVID-driven market.

Despite a decline in daily charter rates, the longer-term MPV outlook remains strong due to increased investments in oil and gas and renewables projects.

Project and breakbulk carriers and logistics service providers have a healthy to-do list of energy-related cargo projects ahead of them; now the question is whether rates and availability will return to pre-pandemic levels.