<div class="phx-topic abstract-wrapper">The Georgia Ports Authority reported that the container volume handled by the Port of Savannah increased by 3.6 percent over the same quarter of 2008 in the quarter ended Dec.</div>

The Georgia Ports Authority reported that the container volume handled by the Port of Savannah increased by 3.6 percent over the same quarter of 2008 in the quarter ended Dec.

<div>The Georgia Ports Authority reported that the container volume handled by the Port of Savannah increased by 3.6 percent over the same quarter of 2008 in the quarter ended Dec. 31, 2009, which was the second of the authority&amp;rsquo;s fiscal 2010 year.For calendar 2009 as a whole, however, total container throughput, including laden and empty containers, dropped by 9.9 percent from 2008 to 2,356,574 20-foot container units from 2,616,162 in 2008.&amp;ldquo;Georgia&amp;rsquo;s ports are beginning to experience positive signs that the new shipping lines and capacity we added during the economic downturn are driving growth,&amp;rdquo; said Executive Director Curtis J. Foltz....

The Georgia Ports Authority reported that the container volume handled by the Port of Savannah increased by 3.6 percent over the same quarter of 2008 in the quarter ended Dec. 31, 2009, which was the second of the authority&rsquo;s fiscal 2010 year. For calendar 2009 as a whole, however, total container throughput, including laden and empty containers, dropped by 9.9 percent from 2008 to 2,356,574 20-foot container units from 2,616,162 in 2008. &ldquo;Georgia&rsquo;s ports are beginning to experience positive signs that the new shipping lines and capacity we added during the economic downturn are driving growth,&rdquo; said Executive Director Curtis J. Foltz. &ldquo;The continued surge in demand for our export commodities is creating opportunities for trade.&rdquo; Foltz reported that export volumes for December 2009 increased by 11.4 percent. Loaded import containers also increased by eight percent. Almost all of the containers handled by the GPA go through the Port of Savannah. The total number of containers measured in 20-foot units handled for the month of December was 217,643, an 18.2-percent increase compared with December 2008. &ldquo;The GPA remains cautiously optimistic about the remainder of the current fiscal year,&rdquo; said GPA&rsquo;s Board Chairman Stephen S. Green. In the Port of Brunswick, which handles bulk, breakbulk and roll-on, roll-off cargos, the terminal at Colonel&rsquo;s Island reported record tonnage of 185,424 last month due to increasing volume in grain for export. This represents an almost four-fold increase compared with December 2008 and yielded a year-to-date increase of 37.5 percent. Auto and machinery units through Brunswick for the month of December increased by 47 percent, but were still down for the fiscal year by 10.4 percent. Contact Peter T. Leach at pleach@joc.com .

Maritime

Forwarding

Savannah Container Volume Grew in December Quarter

<div class="phx-topic abstract-wrapper">The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.</div>

The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date.

Feature image

<div class="phx-topic">The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a></div>

The US Surface Transportation Board dealt a blow Friday to Union Pacific Railroad’s $85 billion deal to acquire Norfolk Southern Railway, ruling the merger application UP filed last month is “incomplete.” The regulator’s decision was unanimous, but Union Pacific and Norfolk Southern can fix what is deficient in the application and resubmit it at a later date. UP must inform the STB before Feb. 17 whether it plans to refile an amended application, and can refile any time prior to June 22. Once resubmitted, the STB will initiate a similar 30-day review of the application’s completeness, which likely means it will not issue a final decision on the merger itself until at least the second half of 2027. "Given the deficiencies...the board finds the application is incomplete and, under the terms of the statute, must be rejected,” STB wrote in its ruling. “The board’s decision to reject the application should not be read as an indication of how the board might ultimately assess any revised application or future informational needs, should applicants decide to submit a revised application." In Friday’s 15-page decision, the STB highlighted three major deficiencies in the application, which was submitted by UP on Dec. 19. First, the regulators ruled that the traffic analysis underpinning the application is deficient because it uses market share totals from 2023 and fails to provide future market share projections. Second, the STB took issue with UP failing to disclose what’s called a “Schedule 5.8.” The document defines what counts as a “materially burdensome regulatory condition,” a regulatory outcome that could give UP the contractual right to walk away from the deal. UP had argued that the document didn’t need to be disclosed to the STB because it contains attorney-related work products. BNSF Railway, Canadian Pacific Kansas City, and Canadian National all filed objections to UP’s application based on the first two issues that were flagged by STB. The STB also found that the related Terminal Railroad Association of St. Louis control application was misclassified as a “minor” transaction instead of a “significant” transaction. STB applies different procedural and evidentiary requirements to major, significant, and minor transactions. By deeming something significant instead of minor, it means the board wants to examine the issues involved more closely. The STB also noted several minor, technical issues that should be addressed in a revised application. While the board did not specify what those issues were, a Journal of Commerce analysis of the application found spelling errors and cities labeled with the incorrect state. Contact Ari Ashe at ari.ashe@spglobal.com

Rail News

North-American rail

Surface

STB rejects UP-NS merger application as ‘incomplete’

<div class="phx-topic abstract-wrapper">The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.</div>

The state senate is considering a new bill that would block state funds from going toward port automation, with longshore workers adding their support.

<div class="phx-topic">Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.”The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind <a href="https://www.joc.com/article/stakeholders-differ-on-newsoms-move-to-kill-automation-ban-at-california-ports-6097378">an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid</a>.<h3>Union questions state funds for marine terminals</h3>Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.”Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers.“That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.”Contact Michael Angell at <a href="mailto:michael.angell@spglobal.com">michael.angell@spglobal.com</a>. </div>

Longshore workers in Washington State have thrown their support behind a bill that permanently blocks state money from funding port automation, arguing that technology already in place at the ports of Seattle and Tacoma has impacted waterfront jobs. Local members of the International Longshore and Warehouse Union (ILWU) on Thursday testified before a state senate committee about a bill introduced earlier this month that would allow the use of state money to buy zero-emission cargo equipment but also ban the “purchase [of] fully automated marine container cargo handling equipment.” The bill is a follow-up to 2021 legislation that also blocked state funding for automated cargo handling equipment but was set to expire at the end of 2031. The new bill does not have a sunset clause, and the current expiration date “is starting to creep toward the present day,” state Sen. Jesse Salomon, the bill’s sponsor, said Thursday. “The point of this is to make sure that as we move forward into the future, humans still are valued for the work that they do, and we don’t fully automate,” Salomon said. The bill represents the latest effort by West Coast longshore workers to stem further encroachment of automation technology at ports. Last year, California ILWU members threw their support behind an unsuccessful bill that would have prevented automated cargo handling from connecting to the state’s power grid . Union questions state funds for marine terminals Dan McKisson, president of ILWU Washington Area District Council representing 5,000 dockworkers statewide, said in his testimony that while the union supports state funding of zero-emission equipment and infrastructure upgrades, marine terminals do not need state money because most of them “are multi-million international companies or controlled by private equity.” “This bill does not prohibit [terminals] from purchasing automated cargo handling equipment,” McKisson said. “International companies benefit from using taxpayer dollars for automated equipment. It does not benefit ports, workers, and the community.” Most of the technological upgrades at Seattle and Tacoma ports have focused on speeding up truck processing at terminal gates. As with nearly all US ports, Seattle and Tacoma have used optical character readers (OCRs) for scanning incoming containers for decades, along with using remote speaker boxes at gates in place of longshore clerks. Kesa Sten, the president of ILWU Local 52 that represents clerks and checkers, said such “computerized auto gates” have meant fewer such jobs and have led to inefficiencies, such as in-gating damaged containers. “Private companies wish to use automation to shift labor costs to others in the supply chain and to do the same work with fewer workers,” Sten said, adding that when she started on the job, every gate booth had a clerk. But now, “one person can do the job of five” checking in truckers. “That is fast, that is efficient, but it is also job erosion,” she said. “We welcome advances that enhance our job, not eliminate them.” Contact Michael Angell at michael.angell@spglobal.com .

North American ports

Longshore labor

Marine terminals

Washington State weighs permanent ban on funding port automation

<div class="phx-topic abstract-wrapper">The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. </div>

The orders come amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators.

<div class="phx-topic">Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at <a href=" keithwallis@hotmail.com.">keithwallis@hotmail.com</a>.</div>

Multipurpose vessel (MPV) operators are continuing to add to their fleets, with owners in Germany and China placing orders for up to 12 ships totaling approximately $450 million.   The move comes amid continued strong growth in the global wind energy sector as turbines, blades and monopiles provide stable cargo for MPV and heavy-lift operators. Nordic Hamburg Group signed firm contracts this week for three 13,300-deadweight metric ton (dwt) heavy-lift multipurpose vessels, plus options for two similar vessels with Wuhu Shipyard, the east China shipbuilder said in a statement. The shipyard did not disclose financial details, but shipbrokers said the total order was worth about $150 million. The ships will be equipped with two 250-metric ton cranes to give a combined lifting capacity of 500 metric tons, “which can efficiently carry wind power equipment and other large equipment,” the statement said. The Ice-class vessels will have cargo hold totaling 936,000 cubic feet and will be over 20% more fuel efficient than older vessels, the shipyard added. The ships are likely to be delivered in 2027. Nordic Hamburg owns and manages a fleet of about 60 ships, including container ships and container and roll-on/roll-off (conro) ships, in addition to MPVs. Separately, Chinese shipowner Fujian Highton Development has ordered up to seven 62,000-dwt multipurpose and heavy-lift vessels from China’s Taizhou Kouan Shipbuilding. The deal, with a total value of about $300 million, comprises a firm contract for three ships to be delivered in 2029 and options for four similar ships. Fujian’s investment in the first three vessels will be capped at $130 million, the company said in a filing to the Shanghai stock exchange. Fujian, which operates about 80 MPVs and dry cargo ships, is planning to expand to 100 vessels by 2030. Contact Keith Wallis at keithwallis@hotmail.com .

Energy projects

Heavy-haul transport

Project cargo

Breakbulk News

Carriers expand MPV fleets with $450 million in new vessel orders

<div class="phx-topic abstract-wrapper">But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.</div>

But the US’ largest intermodal provider said during its fourth-quarter earnings call it is not forecasting a market inflection just yet, citing the “false starts” the industry has seen during the past 18 months.

<div class="phx-topic">The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath ... We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” <h3>Intermodal markets still sluggish </h3>Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in the fourth quarter. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s (UP’s) domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at <a href="mailto:ari.ashe@spglobal.com">ari.ashe@spglobal.com</a>.</div>

The US truckload market is “fragile” enough given the capacity now exiting that a disruption or demand catalyst could quickly send prices higher and mark the end of the freight recession, according to J. B. Hunt. But the US’ largest intermodal provider is not forecasting an inflection just yet, citing what it called the “false starts” the market has seen during the past 18 months. “[An] uptick in demand could create an environment that’s different than what we’ve seen in the last several years,” J.B. Hunt CEO Shelley Simpson said late Thursday during the company’s fourth-quarter earnings call. “Having said that, we’re not holding our breath ... We want to finish up at least January and February and see what happens there.” Spot market truckload rates paid by the shipper rose 19 cents month over month in December to $2.46 per mile on lanes greater than 250 miles, according to a Journal of Commerce analysis of data from DAT Freight and Analytics, Sunset Transportation, and digital platform Loadsmart. Shippers have told the Journal of Commerce, however, that the December spot market surge has not emerged as a topic in ongoing truckload contract negotiations. “Most customers view recent market tightening as temporary and seasonal rather than a structural shift,” Spencer Frazier, J.B. Hunt’s executive vice president of sales, said on the earnings call. “After several years of mixed signals and forecasting challenges, customers will only acknowledge a structural change after they feel a tighter market for a longer period of time, likely driven by some degree of both reduced capacity and stronger demand.” Intermodal markets still sluggish Intermodal demand, which often lags truckload, has yet to strengthen enough to shift pricing power back toward carriers. J.B. Hunt reported that its intermodal revenue was down 3% and volume down 2% year over year in the fourth quarter. Volume on the West Coast dropped 6%, while East Coast volume rose 5% in the fourth quarter. Intermodal operating income increased 16% year over year in the quarter, driven by lower costs and a strategy of walking away from low-margin freight. Over the past year, J.B. Hunt has emphasized yield and margin discipline even at the expense of weaker volume and revenue. To support that goal, the company has taken a tougher stance on pricing, a decision that has resulted in losing share to competitors in California. RailState, a rail visibility and analytics provider, reported that Union Pacific Railroad’s (UP’s) domestic intermodal volume out of Southern California increased more than 20% year over year in the fourth quarter, while BNSF Railway’s volume fell about 5%. The divergence suggests that UP partners such as Hub Group and Schneider National have captured business at J.B. Hunt’s expense in Southern California. BNSF is J.B. Hunt’s exclusive partner in the western US. Despite J.B. Hunt’s emphasis on margins, there is no indication that intermodal pricing dynamics have shifted materially from a year ago. During the 2025 bid cycle, intermodal providers were generally able to secure rate increases on outbound lanes from California, but struggled to do so elsewhere. “We’re a little bit hesitant to suggest that we think there’s some big pricing opportunity, but we’ll be quick to identify when we see the market shift...,” Darren Field, J.B. Hunt’s president of intermodal, said during the call. Field added that it’s too early to gauge 2026 contract pricing, noting that many of the intermodal bids in the fourth quarter were backhaul routes. Pricing on those lanes was flat to down last year as e-commerce giant Amazon continued to offer low rates to third-party shippers to fill capacity on return moves to Southern California. Field also made brief remarks about the UP-Norfolk Southern merger application filed Dec. 19 with the US Surface Transportation Board. “We continue to digest the application and had expected more intermodal-specific questions to be addressed in the merger application than there were [addressed],” he said. Analysts did not ask Field to elaborate. J.B. Hunt did not respond to a Journal of Commerce request for comment on which intermodal-related issues it expected to be addressed in the filing but were not. Contact Ari Ashe at ari.ashe@spglobal.com .

Trucking News

Truckload

Intermodal providers

Truckload at a tipping point; intermodal still lagging: J.B. Hunt

<div class="phx-topic abstract-wrapper">But rapid development of the record 8.4 gigawatts of new offshore capacity could lead to ship capacity constraints and logistical bottlenecks.</div>

But rapid development of the record 8.4 gigawatts of new offshore capacity could lead to ship capacity constraints and logistical bottlenecks.

<div class="phx-topic">Multipurpose and heavy-lift vessel operators are set for a surge of cargo linked to offshore wind farms around the coast of Britain after the UK government greenlit eight projects totaling $30 billion for completion by 2030. The projects, announced on Jan. 14, cover a record 8.4 GW of new offshore wind capacity split between six fixed and two floating sites around the coast of Britain following a government-backed auction of new locations. They will represent a 50% increase in offshore wind capacity from the 16 GW operating at the end of 2025. Still, vessel operators and analysts cautioned the development of so much offshore wind capacity in such a short period could cause supply chain bottlenecks due to limits on specialized vessel availability, port capacity, and the manufacturing capability of key equipment. “The volume of bottom-fixed projects implies a very high level of demand for heavy-lift and jack-up vessels, increasing the risk of installation bottlenecks if schedules converge,” Maëlig Gaborieau, senior offshore wind analyst at consultancy Spinergie, told the Journal of Commerce. Gaborieau said the supply of nacelles, which house the power generation equipment at the top of the turbine tower, is the most exposed part of the supply chain. “The scale program is such that UK projects alone will absorb a very significant share of European nacelle manufacturing capacity over a short period,” he said. “This makes nacelles the most critical component-level risk in terms of delivery timelines.” The supply of monopile foundations is also tight, although components are likely to be imported by non-European manufacturers including China, which would provide some additional flexibility, the analyst said. <h3>Ship capacity a concern </h3>Michael Mørland, project cargo director at multipurpose vessel (MPV) operator G2 Ocean, said there is currently limited capacity of MPVs and heavy-lift ships that can handle longer and heavier equipment, including blades and monopiles. “Blades, for example, typically span 344 to 377 feet, demanding ships with extended holds for tower sections and expansive, unobstructed weather decks to accommodate such lengths,” he told the Journal of Commerce. Some operators have seen this gap in the market and have ordered vessels that can more easily handle and install the latest generation of wind farm components. G2 Ocean will take delivery of 10 82,000-deadweight metric ton open hatch MPVs between now and 2029. Chipolbrok has 11 heavy-lift MPVs on order, including up to 10 60,800-dwt ships ordered last week, while DSME took delivery of the Norse Energi, on Jan. 15, its second new wind turbine installation vessel purpose built to install the next generation of large-scale offshore wind turbines. Mørland thought that this extra cargo volume could ease capacity constraints, but it would also lead to a firming in charter rates with the more capable ships attracting a premium. He said the eight UK projects are expected to involve the installation of approximately 500 to 600 turbines, “boosting the project cargo volumes bound for the North Sea.” “For G2 Ocean, this signals renewed momentum in the offshore wind segment — a welcome change after a period of slower growth,” Mørland said. <h3>Ports a possible chokepoint </h3>Mørland also highlighted port capacity as a potential bottleneck for the cargo needed for the UK projects. “The availability of lay-down areas and mobilization yards is a concern that has been widely raised in relation to this project,” he said. “The UK has limited space for these large offshore wind components. “Complicating matters, the UK’s departure from the EU means that utilizing facilities in neighboring countries for storage and staging is no longer as straightforward,” he added. “Deciding where the components will be manufactured, as well as securing sufficient staging, lay-down, and mobilization yard capacities, must be addressed fast to avoid delays to the projects.” But Spinergie’s Gaborieau said pressure on ports could be reduced by components being delivered and installed progressively, allowing more manageable lay-down capacity. Mørland thought the winners of the eight projects would already be talking to potential shipping and equipment company partners. RWE, the German energy company, won approval for five of the eight projects — Norfolk Vanguard East, Norfolk Vanguard West, and two Dogger Bank South projects in the British North Sea, plus the Awel y Môr project located in the Irish Sea — that total 6.9 GW of capacity. Investment firm KKR has teamed up with RWE to jointly develop, build and operate the two Norfolk Vanguard projects. Energy company SSE will develop the 1,380-MW Berwick Bank B project in northern England. Highland Wind, led by Copenhagen Offshore Partners, is developing the 9.5-MW Pentland floating offshore wind farm off the coast of northern Scotland. The second floating wind farm development is Blue Gem Wind’s 100-MW project off the coast of Wales. RWE and SSE declined to comment beyond their official statements. Other companies, including turbine suppliers Vestas and Siemens Gamesa, did not respond to requests for comment from the Journal of Commerce. Contact Keith Wallis at <a href="mailtokeithwallis@hotmail.com">keithwallis@hotmail.com</a>. </div>

Multipurpose and heavy-lift vessel operators are set for a surge of cargo linked to offshore wind farms around the coast of Britain after the UK government greenlit eight projects totaling $30 billion for completion by 2030. The projects, announced on Jan. 14, cover a record 8.4 GW of new offshore wind capacity split between six fixed and two floating sites around the coast of Britain following a government-backed auction of new locations. They will represent a 50% increase in offshore wind capacity from the 16 GW operating at the end of 2025. Still, vessel operators and analysts cautioned the development of so much offshore wind capacity in such a short period could cause supply chain bottlenecks due to limits on specialized vessel availability, port capacity, and the manufacturing capability of key equipment. “The volume of bottom-fixed projects implies a very high level of demand for heavy-lift and jack-up vessels, increasing the risk of installation bottlenecks if schedules converge,” Maëlig Gaborieau, senior offshore wind analyst at consultancy Spinergie, told the Journal of Commerce. Gaborieau said the supply of nacelles, which house the power generation equipment at the top of the turbine tower, is the most exposed part of the supply chain. “The scale program is such that UK projects alone will absorb a very significant share of European nacelle manufacturing capacity over a short period,” he said. “This makes nacelles the most critical component-level risk in terms of delivery timelines.” The supply of monopile foundations is also tight, although components are likely to be imported by non-European manufacturers including China, which would provide some additional flexibility, the analyst said. Ship capacity a concern Michael Mørland, project cargo director at multipurpose vessel (MPV) operator G2 Ocean, said there is currently limited capacity of MPVs and heavy-lift ships that can handle longer and heavier equipment, including blades and monopiles. “Blades, for example, typically span 344 to 377 feet, demanding ships with extended holds for tower sections and expansive, unobstructed weather decks to accommodate such lengths,” he told the Journal of Commerce. Some operators have seen this gap in the market and have ordered vessels that can more easily handle and install the latest generation of wind farm components. G2 Ocean will take delivery of 10 82,000-deadweight metric ton open hatch MPVs between now and 2029. Chipolbrok has 11 heavy-lift MPVs on order, including up to 10 60,800-dwt ships ordered last week, while DSME took delivery of the Norse Energi, on Jan. 15, its second new wind turbine installation vessel purpose built to install the next generation of large-scale offshore wind turbines. Mørland thought that this extra cargo volume could ease capacity constraints, but it would also lead to a firming in charter rates with the more capable ships attracting a premium. He said the eight UK projects are expected to involve the installation of approximately 500 to 600 turbines, “boosting the project cargo volumes bound for the North Sea.” “For G2 Ocean, this signals renewed momentum in the offshore wind segment — a welcome change after a period of slower growth,” Mørland said. Ports a possible chokepoint Mørland also highlighted port capacity as a potential bottleneck for the cargo needed for the UK projects. “The availability of lay-down areas and mobilization yards is a concern that has been widely raised in relation to this project,” he said. “The UK has limited space for these large offshore wind components. “Complicating matters, the UK’s departure from the EU means that utilizing facilities in neighboring countries for storage and staging is no longer as straightforward,” he added. “Deciding where the components will be manufactured, as well as securing sufficient staging, lay-down, and mobilization yard capacities, must be addressed fast to avoid delays to the projects.” But Spinergie’s Gaborieau said pressure on ports could be reduced by components being delivered and installed progressively, allowing more manageable lay-down capacity. Mørland thought the winners of the eight projects would already be talking to potential shipping and equipment company partners. RWE, the German energy company, won approval for five of the eight projects — Norfolk Vanguard East, Norfolk Vanguard West, and two Dogger Bank South projects in the British North Sea, plus the Awel y Môr project located in the Irish Sea — that total 6.9 GW of capacity. Investment firm KKR has teamed up with RWE to jointly develop, build and operate the two Norfolk Vanguard projects. Energy company SSE will develop the 1,380-MW Berwick Bank B project in northern England. Highland Wind, led by Copenhagen Offshore Partners, is developing the 9.5-MW Pentland floating offshore wind farm off the coast of northern Scotland. The second floating wind farm development is Blue Gem Wind’s 100-MW project off the coast of Wales. RWE and SSE declined to comment beyond their official statements. Other companies, including turbine suppliers Vestas and Siemens Gamesa, did not respond to requests for comment from the Journal of Commerce. Contact Keith Wallis at keithwallis@hotmail.com .

MPV, heavy-lift operators ready for UK offshore wind boom after project approvals

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