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Breakbulk July 2018

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BREAKBULK & PROJECT CARGO SPECIAL ADVERTISING SECTION July 2018 | The Journal of Commerce 27 www.joc.com more competition for the tranche of general/ project/breakbulk cargo that the MPV fleet needs. The effect is not necessarily the tariff on the commodity but on the other sectors cascading down," she said. For its part, BBC Chartering is reporting that to date, impact on their overall volumes has been minimal. However, they remain concerned that the duration of the current tariff conflict will become increasingly problematic. "There are many products that are impacted by the trade war, and no end in sight," Raymond Fisch, senior vice president of strategic projects, said. "The share of our business from the Far East to US is about 10 percent. We ship a mix of commodities: steel products, wind power components, other energy related equipment, project cargoes etc. — many items are concerned by the trade war to the US, and the exposure is there, but it is very limited. Our total share of business trading from China to the US is a low single-digit share and has only lost very little compared to last year." Renewable energy is still the mainstay of the project cargo sector. Indications are that the growth in renewable power over the next 15 years will be three times as fast as it was over the last 15. Most of this is due to the increasing competitiveness of wind and solar power and the global expansion in renewable energy. It's expected that China may supersede Europe as the fastest-growing region for wind energy, a positive indicator for the sector. Energy-related undertakings are at the core of BBC's optimism. "We see many interesting developments and good activity," Fisch said. "There are lots of wind power projects all over the world, mainly in the Americas. Also, quite a few investment decisions have been made regarding LNG developments, and it's good to see that oil and gas projects are coming back too." He listed mining equipment and steel products as additional sources of project volumes, adding, "Worldwide, project shipping is in constant flux — the composition is changing constantly." The prevailing spike in bunker costs may carry a silver lining, Oatway said. "There is also the increasing oil price, which although a negative driver for earnings, once it reaches £70/bbl (as seen recently) we tend to see more investment to this sector and increased optimism for the project sector," she explained. Incremental container capacity coming online as a result of the launching of the seemingly inexhaustible stream of megaships presents significant competitive issues for MPV operators. However, Oatway believes the prevalence of over dimensional, ultra-heavy components in the project market bodes well for MPV owners. "The competition is fierce for this cargo, but the MPV have some advantages over both containers and ro-ro. It is not just about crane capacity. The height to which the crane can lift to get the piece of project cargo into its holds is also important. Some of the bigger offshore wind turbines have monopoles that themselves weigh well over 1,000 tonnes and are up to 50 meters high — swinging that off the berth onto the deck of a vessel requires some maneuverability from the cranes. And this is where the project carriers will find their niche; with the ability to lift and stow heavier, more cumbersome cargoes, these vessels are ideally placed to benefit from this improved demand scenario," she said. Given the vagaries of the project market, volume projections beyond the near term become difficult at best. "The breakbulk and project business is a rather spot-oriented business for the shipping sector. Two to three years is not foreseeable — we have a fairly good picture of our booking volumes in the coming DEPENDABLE DEPENDABLE PERFORMANCE PERFORMANCE EVERY SHIPMENT EVERY SHIPMENT EXPRESS SERVICE FOR OVERSIZE CARGO Features: • Lump sum, all inclusive rates • Weekly frequency & expedient transit times • Port to Port / Door to Port / Door to Door service • Attentive, responsive, and respectful Contact us today for your oversize shipment needs! New York: Chicago: San Francisco: east@aishipping.com midwest@aishipping.com west@aishipping.com Benefits: • Attractive and predictable pricing • Dependable and consistent service • Flexible service • The AIL experience OUTBOUND & INBOUND Asia | Australia | Europe | Mediterranean | Middle East | South America www.aishipping.com

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