Project cargo

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.

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.

The wind energy industry must resolve a number of supply chain issues or it has little chance of reaching the US’ 2030 goal for energy generation from onshore and offshore wind.

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.

The joint venture will increase Cosco’s fleet to 18 heavy-lift semi-submersible vessels by the end of 2023.

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.

Changes at Maersk and Combi-Lift reveal interest in capturing a larger share of the project forwarding market.

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.

Quarterly earnings reports reveal that wind turbine manufacturers are slowly recovering from a pandemic market battering as orders and revenues ramp up.

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

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

As funding opportunities expand, energy security concerns force investors to reevaluate their priorities, attendees at the Journal of Commerce’s Breakbulk and Project Cargo Conference were told.

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.

Breakbulk volumes are normalizing at Houston after the market surge of 2022, while “spillover” containers have disappeared.

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.

EPC projects drive much of the global demand for project and breakbulk logistics services from carriers, forwarders, and other suppliers.

Demand for flatbed tractor-trailers is rising along the Gulf Coast and Southeast, buoyed by project cargo, shifting freight patterns, and a warmer-than-normal winter, DAT Freight & Analytics says.

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.

Even as breakbulk volumes ebb from their pandemic highs, several mega-projects planned for South Louisiana are expected to keep project cargo moving at the Port of New Orleans.

The acquisition of Avondale by the port comes just as the state of Louisiana readies to auction its first round of offshore wind leases.

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.

Drought is keeping the Mississippi River at historically low water levels, tying up barge capacity and extending the southbound grain season.

Two years of pandemic-related oil and gas project delays and cutbacks in global supply due to the Russia-Ukraine war are driving demand for project logistics services in the short and long term.

Bottlenecks and a lack of needed infrastructure may put the “aspirational” global offshore wind installation schedule out of reach, an analyst says.

Developers have installed a total of 139 gigawatts of onshore wind energy production across the US, with another 23 GW under construction or in advanced development as of the second quarter of 2022.

The global super-heavy carrier fleet is at 91 percent utilization as governments accelerate energy investments amid the rush to cut ties with Russia.

Maersk is expanding its footprint in the heavy-lift sector with the acquisition of specialist logistics provider Martin Bencher that will be central to its new Maersk Project Logistics product.

Millions of tons of project cargo freight will be moving soon as energy projects, including Qatar’s massive LNG facility, gather steam, logistics executives say.