Breakbulk carriers

While the breakbulk sector failed to capitalize on the forward loading of steel to get in front of US import tariffs, it now has bigger concerns with US proposals to penalize Chinese-made MPVs.

The threat of US tariffs, inflation, rising government borrowing and slower interest rate cuts are undermining cargo confidence in the US and beyond, according to benchmark indicators.

Investment in wind power and air lubrication gives multipurpose vessel operators an extra shot at compliance with the FuelEU emissions rules.

Unstructured data, security concerns and value questions are holding back the progression of technology in the breakbulk industry.

Shipowners in the sector view the ambitious SHIPS for America legislation as unrealistic, with the domestic shipbuilding industry under-skilled and lacking the capacity needed to meaningfully contribute to the specialized MPV fleet.

Forwarders say that breakbulk and project cargo shippers are taking a greater interest in alternative fuel options for specialist ships.

The breakbulk sector can lean on the progress of key US ports in facilitating the safe bunkering of next generation alternative shipping fuels

The shipowner’s decision to expand its MPV fleet is underpinned by expected growth in project cargo volumes and a lack of suitable ships.

The project, expected to drive further investment at Europe’s second-busiest port, is the largest investment in Europe’s chemical industry in more than 20 years.

US energy and climate regulations and policies are expected to shift with the incoming Trump administration, although the magnitude of that shift is still unknown.

Increased orders and decreased recycling in 2024 helped capacity, but the volumes are still not where they need to be to balance the MPV fleet.

Outside investment for project carriers is scarce, primarily because future project cargo flows are so difficult to predict.

Steady-but-uninspiring demand for MPVs has kept freight rates at a sustainable level.

Industrial projects reliant on imported steel are expected to feel the pinch of an import and quality crackdown in the country.

A decline in sales of high-and-heavy equipment for the bellwether roll-on/roll-off cargo providers will reduce demand for breakbulk carriers.

MPV operators are hopeful the incoming Trump administration will build on Biden’s support for nuclear power generation, which would boost cargo volumes.

The Ships for America Act and national security spotlight seen as growth opportunities for US-flag commercial fleet.

Minimal movements in industry indexes underline a constant demand for MPVs with capacity artificially reduced by Red Sea diversions.

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 record order book for car carriers comes amid forecasts of falling global production of light vehicles, a key driver of roll-on/roll-off vessel demand.

Should a strike occur — and if it continues for an extended period — one possible outcome is the spillover of container cargo into breakbulk vessels, similar to the scenario that played out in response to supply chain bottlenecks during the pandemic.

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.

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.

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.

A 458-ton cold box, one of 24 heavy-haul transports bound for Intel’s newest chip plant, is inching its way across Ohio after a year-plus of planning.

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.

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 US DOT’s latest iteration of a national multimodal freight network map presents an opportunity to pinpoint vital routes and address concerns specific to out-of-gauge and heavy-haul road transport.

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.

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.