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Breakbulk September 2022

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September 2022 | The Journal of Commerce 9 www.joc.com Breakbulk & Project Cargo Breakbulk Fleet Update first half of 2022, thanks to the high demand for tonnage. Diculty finding funding, higher newbuilding costs, and scarce shipyard capacity will likely continue to limit investment in newbuildings in the short term. Average prices for newbuilding MPV ships at the end of the first half of 2022 reached $53 million for a 30,000-deadweight-ton (dwt) geared vessel; $31.5 million for a 12,500-dwt geared vessel; and $20 million for a 9,000-dwt ton geared vessel, according to Toepfer. In 2015, the average price for the same ves- sels were $41 million, $19.5 million, and $15 million, respectively. But Schlick does not believe this dearth of new ships poses an immediate danger, as the fleet is relatively young. "The big question is 2030 and beyond, with the new reduced-emissions regulations coming," he said. "That's the biggest factor that will change things." shipping market, many of these ships ended up moving cargo at rates that undercut the rest of the MPV segment. The oil price crash of 2014–15 prolonged this recession. A decade later, vessel owners and operators are leery of recreating an over-tonnaged MPV sector, while banks are averse to lending to the multipurpose sector, especially straight debt financing, Archard said. If the owner of a handy-size bulker goes into administration, or bankruptcy, that asset can be sold relatively easily because "there are 10,000 potential owners," Archard said. But for MPV/HLs, as technical capabilities such as lift capacity increase, the pool of potential buyers in the event of a default decreases rapidly. "It is simply not a good risk for a bank," Archard said. There were 2,268 MPVs with lift capacities of up to 100 metric tons (mt) and 950 MPV/HL ships with lift capacities of more than 100™mt in the global fleet as of August, according to Drewry Maritime. Of the 111 MPV ships currently on order, about 51 are slated to be heavy-lift-capable, said Susan Oat- way, senior analyst for multipur- pose and breakbulk shipping at the London-based consultant. According to Hamburg-based ship- broker Toepfer Transport, the multi- purpose fleet totaled 16.3 million dwt in the first half, with a total of about 380,000 dwt on order, equal to just 2.3 percent of the total fleet. No ships were retired or sold for scrap in the "The big question is 2030 and beyond, with the new reduced- emissions regulations coming." Explore our products and solutions IntermodalcontainersUSA.com Tradecorpshippingcontainers.com International CONTAINER SALES & LEASING PROJECT CARGO & BREAKBULK CONTAINER SOLUTIONS Tradecorp specialized container division makes your logistic requirements easy. With Tradecorp's Global operations, we are here to assist, no matter the size of the request. • S p e c i a l i z e d C o n t a i n e r s • L e a s i n g S o l u t i o n s • P u r c h a s e O p t i o n s • O n e - W a y S O C C o n t a i n e r L e a s i n g

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