Project cargo

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.

Healthy demand for “sophisticated” multipurpose vessels is being undercut by a sluggish market for standard MPVs.

A 10-ship order and the acquisition of MPV carrier ForestWave will increase Spliethoff’s fleet to 155 ships by 2029.

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.

Multipurpose carriers are reluctant to invest in newbuildings for several reasons, including uncertainty around the availability of carbon-neutral fuels for tramp shipping.

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

A Journal of Commerce analysis reveals that the average age of MPVs now trading globally is rapidly approaching 20 years, with almost 12% of vessels 25 years or older.

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.

An “unbroken faith” in the underlying strength of the breakbulk market is pushing up indices and bolstering the optimism of multipurpose carriers, analysts say.

The latest iteration of the multipurpose sentiment index reveals short-term optimism and little relief in sight for longer-term capacity pressures.

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.