Project cargo

Spillover talk is surfacing, but a shift has yet to materialize at Port Houston while oil and gas-related steel demand is on the downswing as rig counts drop.

Multipurpose vessel (MPV) charter rates are rising as tight capacity due to diversions away from the Red Sea, port congestion and higher spot rates prompt shippers to shift containerized cargo to MPVs.

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.

Despite sliding breakbulk volumes during the first five months of the year, there are signs that spillover cargo may reappear at the Port of New Orleans thanks to the disrupted global market.

Trade disruption and related congestion, high container rates and tight capacity are pushing shippers to rethink transport modes and make early moves toward revisiting the spillover market seen during the pandemic.

Security forces preoccupied with Houthi attacks in the Red Sea and an increase in Indian Ocean shipping, thanks to ongoing route diversions, have created an opening for Somali pirates.

Often oddly shaped or very heavy, project cargo does not necessarily consume all the deadweight space on a given vessel.

Managing federal funding requires transparency, early coordination between logistics and finance, and early planning with MARAD in mind.

The moves come as the project cargo market is set to continue its growth trajectory, supported by key sectors such as oil and gas and mining.

Time charter equivalents and forward bookings are increasing as project-related demand strengthens and carriers continue to reroute voyages away from the Red Sea.

The Houston-based company expands to 30 vessels as it takes on management of six Harren Group bulkers and adds two more MPV ships to its fleet.

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.

Approximately one-third of the multipurpose and heavy-lift fleet is in position to be scrapped, while the industry demands that larger vessels and carriers weigh which type of fuel will rule the day.

The shipping industry is facing a prolonged period of geopolitical instability, attendees at the Journal of Commerce’s Breakbulk & Project Cargo Conference were told Thursday.

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

Toepfer Transport says improving demand and the ongoing threat to shipping caused by the Houthi militant attacks in the Red Sea region have boosted fleet utilization.

Tougher environmental rules are expected to drive more MPV scrapping even as the order book expands thanks to new MPV and open-hatch ship orders.

New orders for open-hatch multi-purpose ships, some of them heavy-lift capable, have increased the MPV fleet growth forecast by 3.5% through 2028.

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.

Mode-malleable breakbulk cargo is shifting back to containers even as disruptions threaten to squeeze capacity and drive container rates higher.

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.

The multipurpose sector is managing security risk, dodging pricey transit fees at the Panama Canal and finding new cargo sources as route diversions globally become routine.

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.

Project volumes will include steel and modules related to the development of the second phase of the $21 billion Venture Global liquefied natural gas export facility under construction in Plaquemines Parish, downriver from New Orleans.

The MPV spot market is increasingly busy even as high interest rates and supply chain bottlenecks hold back capitol project execution, analysts and industry executives say.

Heavy-lift and semi-submersible owner/operator Harren Group is expanding its fleet with a mix of long-term charters and up to six newbuildings.

With capacity restricted, global MPV/HL rates are expected to rise again starting in the second quarter of 2024.

The biggest trucking acquisition of 2023 gives Canada’s TFI an additional $1.8 billion in annual revenue and nearly 20 operating subsidiaries hauling oversized, heavy freight.

The US offshore wind buildout will be a boon for Jones Act vessels in the long run, but current equipment shortages, high costs and the restrictive effects of cabotage laws are hampering initial construction.

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.

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.

Fresh investments among oilfield services giants should bolster the offshore services market, with supply chain spending expected to grow 16% in 2023 and 2024.

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.

As US project cargo demand — and cargoes themselves — grow, heavy-haul trucking carriers are struggling with permitting delays, infrastructure complications and a rapidly aging workforce.

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.