Breakbulk News

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

Beyond the supply chain snarls, permitting bottlenecks and high costs that are hampering offshore wind development generally, the Gulf is a less-than-ideal location for offshore wind compared with other parts of the US.

Weak construction and manufacturing demand, inflation fears and continued economic uncertainty are weighing on global steel volumes, a key commodity for multipurpose vessels.

The wind energy industry must resolve a number of supply chain issues or it has little chance of reaching the US’ 2030 goal for energy generation from onshore and offshore wind.

Longer term, global vehicle sales are expected to exceed pre-pandemic levels from 2024 onward, while high and heavy volumes are also expected to remain strong.

The carrier did not disclose the value of the vessel order, but shipbroking sources estimate the price of each ship at $140 million to $150 million, based on their size and multi-fuel capability. 

Although the multipurpose vessel market is expected to further soften on weak charter activity in the third quarter, firmer demand is expected by the end of the year, keeping certain sectors of the market — mainly, project carriers — optimistic, analysts said.

The joint venture will increase Cosco’s fleet to 18 heavy-lift semi-submersible vessels by the end of 2023.

A rigorous hunt for seeds and pollen is disrupting vehicle and high & heavy imports into Australia, leading carriers to pull back on services.

New and expanded auto imports landing at the Northwest Seaport Alliance come as carriers take advantage of its proximity to Asian ports during a time of scarce ro/ro tonnage.

The fall hid some upbeat trends, with the number of refrigerated containers rising more than 10% in the first half and the rate of decline in overall volumes easing in the second quarter.

Breakbulk ro/ro shippers are hunting for solutions as carriers deal with high vessel charter rates, tight capacity and port congestion.

Brunswick’s growth comes amid rising automotive production, pent-up consumer demand and an easing of the semiconductor shortage that occurred during the pandemic.

Expected demand for wind cargo, among other factors, is still driving underlying optimism in the MPV sector, but a wind turbine tech “arms race” could cast a long shadow.