Energy projects

The wind energy sector provides a key source of project and breakbulk cargo, but US policy shifts could dampen future activity given that President-elect Donald Trump has been a vocal opponent of offshore wind.

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

A growing need to replace aging US hydropower units adds weight to project demand from the renewable energy sector.

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

Donald Trump has promised to stop US offshore wind projects on “day one” of his administration, but stakeholders say they are cautiously optimistic that momentum from existing projects and leases could help ease his resistance.

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

A second Trump term could benefit US oil projects, but offshore wind is under threat as an early casualty of the new administration.

A slower-than-expected transition to renewable energy sources is augmenting — rather than replacing — investment in traditional oil and gas, boosting project cargo demand.

Weak economic trends have kept the pressure on industrial end-markets serviced by Linde and Air Liquide, which provide key cargo for the breakbulk and project cargo segments.

The Port of Virginia is enjoying a 372% surge in breakbulk cargo volumes thanks largely to handling cargo shipments supporting a 2.6-gigawatt offshore wind project.

The decline in oil prices has prompted diversification of projects for Baker Hughes and SLB.

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.

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.

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

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.

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.

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.

The global energy buildout in renewables and oil and gas has spurred the heavy-transport partners to order two new carriers.

Oil and gas supply chains are in jeopardy as the government of Equatorial Guinea announces that it plans to nationalize a major port asset owned by Netherlands-based UAL Group.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.