Breakbulk News

Vessel diversions and potential tariffs complicate the outlook, but strong forward contracting fueled by booming demand is bolstering the ro/ro sector after a strong 2023.

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 flow of roll-on/roll-off cargo shows little sign of slowing as carriers ink long-term deals with automotive and high and heavy manufacturers.

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.

While container spot rates aren’t favorable for vehicle shipments now, Emanuele Grimaldi said the size of the container ship orderbook could easily pull rates down as networks adjust to Red Sea disruptions.

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.

The new ships, scheduled for delivery in 2026, form a fleet renewal program to replace three existing ro/ro vessels operated by Louis Dreyfus under a long-term charter agreement with Airbus that has been in place for more than 20 years.

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.

Existing wind-related manufacturing capacity in the US struggles to meet the local content requirements of the measure, frustrating would-be developers and pushing away some early investors.

Multipurpose and heavy-lift and ro/ro carriers are weighing whether to pass on the costs of EU emissions allowances by using surcharges or all-in freight rates.

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.

Voyage diversions needed to avoid Panama Canal drought restrictions and the increasingly risky Red Sea route will remove multipurpose and heavy-lift capacity from the global fleet, which in turn is likely to slow the rate slide seen during 2023, analysts say.

Although carriers and project forwarders have seen lower wind volumes in some markets this year, the slowdown is bringing the US wind buildout to a more realistic level, stakeholders say.

Hyundai Glovis has teamed up with HMM and Seaspan to spend almost $1.5 billion on new dual-fuel pure car and truck carriers as demand continues to surge in the ro/ro sector.

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.

While long-term optimism supports the MPV market, industry analysts see short-term divergence in time charter rate averages.

The aim of the venture is to broaden the scope of the companies’ current operations, both geographically and in vessel size.

GPA's ability to handle growing volumes has attracted the likes of Rivian and Hyundai, both planting roots in Georgia to export vehicles from new facilities through Brunswick.

The phased reduction in the number of transits coincides with peak banana exports from Ecuador and the start of the deciduous fruit season in the southern hemisphere.

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.

Although there is little evidence that EVs are a greater fire hazard aboard ro/ro ships than traditional internal combustion vehicles, carriers are ramping up their safety measures.

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.

Ports in the US are reporting an unusual spike in the number of cars crossing their docks in containers, rather than via roll-on/roll-off vessels.

Crowded terminals and a truck driver shortage in Europe and the Mediterranean are increasing landside delays and driving some shippers to consider calling secondary ports.

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.

Multipurpose owners and operators are growing increasingly wary of the breakbulk market’s downward trend as cargoes remain hard to find and the wind energy market falters.

Meeting the Biden administration’s target of 30 gigawatts of offshore wind energy installed by 2030 will require floating offshore wind, which means building new, specialized port facilities to facilitate development in much deeper waters.

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 carrier’s dual-fuel newbuildings will be the first in a series of vessels to be delivered over the next decade.

Newbuilding investments in the multipurpose and heavy-lift fleet will be crucial to the global push to decarbonize energy.

Breakbulk carriers and their clients must prepare for the EUs new emissions trading system before the Jan. 1 start