Energy projects

A swing from renewables to fossil fuels in the US and new opportunities for wind cargoes internationally could overhaul traditional MPV trade lanes over time.

The Big Three oil field service companies, key drivers of breakbulk steel industrial project cargo, are bearish in their forecasts for the year as global economic uncertainty eats into profits and project pipelines.

The issue of transit time variability in Latin America has downstream impacts for projects, with forwarders often having to get creative to figure out workarounds due to unforeseen delays.

Oil and gas project developers pin hopes on legislative support and tax breaks for supporting carbon capture buildouts in the US, but the future of those projects could be at a crossroads under the Trump administration.

Fluor, KBR, TechnipFMC and Worley are predicting moderate to strong growth in project orders this year, buoyed by oil and gas work.

Manufacturers are offering diverse views on the outlook for the wind sector, with onshore faring better than offshore in the US and blade accidents upending momentum.

EPCs say that tariffs enforced after project costs are finalized not only impact the bottom line but in some cases destroy the viability of a project, hitting volumes in the breakbulk trade.

Airbus’ sudden shutdown of its heavy-lift subsidiary is pushing aviation experts to investigate alternative options to ensure lifts for outsized and project cargo loads are maintained.

A planned US executive order to halt offshore wind turbine activities along the East Coast has the sector in turmoil.

The project, expected to drive further investment at Europe’s second-busiest port, is the largest investment in Europe’s chemical industry in more than 20 years.

US energy and climate regulations and policies are expected to shift with the incoming Trump administration, although the magnitude of that shift is still unknown.

The wind energy sector provides a key source of project and breakbulk cargo, but US policy shifts could dampen future activity given that President-elect Donald Trump has been a vocal opponent of offshore wind.

Steady-but-uninspiring demand for MPVs has kept freight rates at a sustainable level.

A growing need to replace aging US hydropower units adds weight to project demand from the renewable energy sector.

A decline in sales of high-and-heavy equipment for the bellwether roll-on/roll-off cargo providers will reduce demand for breakbulk carriers.

Donald Trump has promised to stop US offshore wind projects on “day one” of his administration, but stakeholders say they are cautiously optimistic that momentum from existing projects and leases could help ease his resistance.

MPV operators are hopeful the incoming Trump administration will build on Biden’s support for nuclear power generation, which would boost cargo volumes.

A second Trump term could benefit US oil projects, but offshore wind is under threat as an early casualty of the new administration.

A slower-than-expected transition to renewable energy sources is augmenting — rather than replacing — investment in traditional oil and gas, boosting project cargo demand.

Weak economic trends have kept the pressure on industrial end-markets serviced by Linde and Air Liquide, which provide key cargo for the breakbulk and project cargo segments.

The Port of Virginia is enjoying a 372% surge in breakbulk cargo volumes thanks largely to handling cargo shipments supporting a 2.6-gigawatt offshore wind project.

The decline in oil prices has prompted diversification of projects for Baker Hughes and SLB.

Rapid urbanization and strong economic growth are driving project cargo volumes in India, although heavier cargoes are becoming harder to handle due to port equipment and infrastructure limitations.

The MPV sector is seeing a period of stability in charter rates and cargo demand after a period of intense routing disruptions linked to the militant attacks on commercial shipping in the Red Sea.

EPCs report revenue gains and hefty project backlogs as manufacturing and traditional and alternative energy projects gain momentum.

Most of the recent interest from shippers is for mode-malleable cargo — freight that can be easily switched between breakbulk and container modes.

While manufacturers remain optimistic for the longer term thanks to hefty order backlogs, they have faced recent headwinds in the form of project slowdowns, rising interest rates, higher commodity costs and, in some cases, defective turbines.

Ports along the US Gulf are beefing up infrastructure, equipment, capacity and dock strength to handle king-sized onshore turbines.

Project slowdowns ease pressure on heavy transport service providers and the breakbulk supply chain, injecting realism into schedules, but a buoyant outlook could mask signs of stress, executives say.

After navigating the 2019 implosion of Zeamarine and the tumultuous pandemic spillover market with MPV carrier UHL, Stehle will rejoin the project forwarding side of the breakbulk shipping segment as chief commercial officer of the Swiss forwarder deugro.

Project cargo shippers are pivoting and rethinking their supply chain strategies as global turmoil becomes the norm in a post-pandemic breakbulk market.

While oil and gas investment will play a large role throughout the energy transition, renewables investment will dominate by 2030, according to S&P Global.

The global energy buildout in renewables and oil and gas has spurred the heavy-transport partners to order two new carriers.

Oil and gas supply chains are in jeopardy as the government of Equatorial Guinea announces that it plans to nationalize a major port asset owned by Netherlands-based UAL Group.

Billions of dollars in federal funds are available to scale up innovative green energy projects, once would-be developers make it through the DOE’s loan qualification process.

Four EPC majors — Fluor, KBR, TechnipFMC and Worley — reported double-digit growth in order backlogs and say they are optimistic about continued revenue momentum into 2024.

Amid growth in US infrastructure spending, the heavy-haul transport segment is calling for better synchronization among state transportation departments when it comes to oversized transport requirements and permitting processes.

Multipurpose/heavy-lift carriers share concerns over the uncertainty caused by geopolitical events but see longer-term promise thanks to the slow-moving green energy boom.

Wind OEM earnings grew as the business environment improved and companies continued to work their way through low-margin projects that were booked before inflation and supply chain snarls hit the industry.

Hurdles slowing the US wind buildout are very real, and the Biden administration’s goal of 30 GW of offshore wind by 2030 appears increasingly unrealistic.