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Breakbulk July 2018

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July 2018 | The Journal of Commerce 17 www.joc.com Breakbulk & Project Cargo three-year life of the project. "Within the first month of winning the contract, we started identifying ocean carriers — both breakbulk and container vessels — and coordinating production and shipping timelines," Bae explained. Singapore-based AAL was se- lected as a lead breakbulk carrier for its onboard multilift, 30,000-dead- weight-ton vessels, its route net- work, and overall reputation. AAL recently won the 2018 Asian Freight Logistics and Supply Chain Award for the best project cargo shipping line in the region. Germany's BBC Chartering, with its global feet of 170 heavy-lift and multipurpose vessels, and PACC Line, Singapore-headquartered operator of breakbulk vessels with extensive project cargo experience moving wind turbines, were also designated. Bae said BBC and PACC were assigned the breakbulk sailings because of their reliability, their service lanes matched the port requirements, and their rates were favorable. He would not disclose rate structures in detail. Most of the sailings were on scheduled service carriers, but at least one PACC cross- ing was a tramper charter. Choosing carriers can be handled long distance with phones, emails and faxes, Bae said. "But the real difficulty in a project move with multiple modes, ports, carriers, and destinations is to make sure the (for- eign) shipper-manufacturer knows ahead of time the stricter require- ments we have here in the US." That takes face-to-face com- munications, he said, so Bae and two colleagues flew to Asia in April 2014 for 10 days and met with every participant involved in the supply chain to discuss all requirements and expectations. "This is where we go over things like the actual loading plans and maximum weights for containers and trucks, which are often over- looked at the point of origin. Then "You must have totally open communication." The outsize cargoes on the breakbulk vessels made scheduled stops in China and Korea and took 60 days for the trans- Pacific crossing. Seahawk Logitech 17% compound annual growth esitmated increase of project cargo demand in India, to $19 billion, by 2020. the emerging market economy represents a lucrative market for all types of cargo — dry, refrigerated, and oversize. Further, India's increasing partici- pation in turnkey projects in the Gulf and in Africa is seen as another factor propelling local demand for project cargo handling. The government of India, for example, has vowed to invest $500 million in the revamp of Iran's Chabahar port, and vowed to sidestep logistics issues regarding a direct procurement of new harbor cranes from China for this project. Concerning the latter, Indian authori- ties were reportedly exploring the possibility of rerouting the ordered equipment via an Indian port. Industry estimates showed proj- ect cargo demand in India would rise at a 17 precent compound annual growth, to $19 billion, by 2020. Damco, Maersk Group's logistics and freight forwarding arm, and Mumbai-based, third-party logistics provider Allcargo Group are dominant logistics service providers for heavy cargo movements to and from India. "Exports in the construction and EPC [engineering, procurement, and construction] segment are on the rise, with many India-based construction players participating in development projects in the Gulf and in Africa. Added to this is the fact that Exim [Export-Import] Bank of India has allocated/executed close to $5 billion to global construction projects and India-based companies participating in these projects are expected to fuel project exports from India, going forward," Vishal Sharma, India subcontinent CEO of Damco, told The Journal of Commerce. l

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