Clearly, 2022 will be a decisive year for multipurpose (MPP) and breakbulk shipping. The foreseeable lack of newbuildings and a steadily aging fleet are starting to cause a reduction in available tonnage space, which is being accelerated by the recent developments in the container and bulk markets.
The positive effect of this development is that, after years of poor income, vessel owners are now earning enough to cover the inevitable investments needed for fleet modernization and renewal. On the other hand, shippers are facing severe price increases, in most cases far above the transportation budgets calculated in weaker markets.
The next few months will be characterized by whether or not this niche market is willing and able to balance the trade-off between the income required to ensure sufficient fleet supply for the future and the risk of failing projects and shippers due to the significant increases in freight rates.
Some of these projects are crucial for all of humanity, since they are related to green energy and emission reductions. Can the world afford to see wind power projects being postponed or canceled due to a lack of cargo space or due to becoming unprofitable? Is this situation finally increasing awareness about how important MPP shipping is for distributing the technology required to solve issues that affect everyone?
The world needs a solid and reliable MPP shipping market with a healthy balance of supply and demand, a fleet that can deliver the cargoes the world needs without harming the environment too much, and rate levels that are rewarding for all stakeholders in the value chain. This is indeed a utopia, but the coming months will give us all a lesson about how this could look, as long as all the stakeholders act wisely and reasonably.