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Breakbulk March 2023

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4 The Journal of Commerce | March 2023 www.joc.com Editorial March Janet Nodar Breakbulk & Project Cargo NEW EMISSIONS REGULATIONS are further complicating an already dif- fi cult decision-making process when it comes to ordering multipurpose and heavy-lift vessels. The International Maritime Orga- nization's (IMO) energy e• ciency existing ship index (EEXI) and carbon intensity indicator (CII) regulations are in force as of Jan. 1, 2023, though they remain in a data collection phase only until early 2024. The EU's stringent emissions trading system (ETS), already in place for some sectors such as power generation and other energy-intensive industries, will begin phasing in for all maritime trade in 2024. The ETS "will a‹ ect all carriers from 2024 onwards and put a signifi cant fi nancial price tag on cargo carried [into, out of ] and within European waters," Christian Ho‹ mann, director, group strategy and marketing for Bremen-based shipping company Harren & Partner, told the Journal of Commerce. Although the CII and EEXI regu- lations may not a‹ ect all multipur- pose and heavy-lift ships, all vessels must collect emissions data and comply with other emissions regu- lations, noted Lars Robert Pedersen, BIMCO deputy secretary general. It's unlikely that a — perhaps temporary — advantage with CII and EEXI regulations will push any new investment in the MPV/ HL sector, however. Rather, the regulations have further delayed potential shipbuilding because there is so much still unknown about what alternative fuel or fuels will power the global fl eet in the future. Vessel owners can't delay newbuilding deci- sions forever, but they need clarity. These questions "can very much keep people awake at night," Peder- sen said. "It's really di• cult to make these decisions." Pressure to reduce greenhouse gas emissions also comes from banks, charterers, and cargo owners. "Ship owners are feeling more and more pressure to be sustainable, and this pressure will only increase... [E]ventually, the industry will have to demonstrate that it is doing its utmost to reduce emissions," Jost Bergmann, business director for multipurpose and general cargo ships with Norwegian ship classifi cation society and maritime consultancy DNV, told the Journal of Commerce. All of these considerations will infl uence plans for the next genera- tion of project cargo vessels, especially those designed for o‹ shore wind transport. The blades, monopiles, and foundations that must be moved are becoming bigger and heavier, and there are very few vessels now in existence that can carry these compo- nents e• ciently, Bergmann said. "Owners are wondering if they should invest in a new breed of larger, heavier MPVs, which will cost a fortune, or invest in deck carriers and rely on shore-based infrastructure for loading and unloading," he said. These specialized ships would be ded- icated to wind energy and possibly other out-of-gauge cargoes, but they would often sail on ballast — i.e., without cargo — on back hauls, as deck carriers don't have a "multi- purpose" capability, he added. All of these challenges are "why many ship owners are sitting on the fence, waiting to see what shape demand will take" before they order new ships, Bergmann said. Added Pedersen, "There will be winners and losers. You have to place your bet, and if you are not good at that you might come out on the losing side. That's why we have this hesitance." Even so, "there is a lot of oppor- tunity in the MPV segment, with all the renewables that have to be erected in the next decade or two," he said. "There [will be] a lot of equipment to move." l email: janet.nodar@spglobal.com twitter: @janet_nodar Placing bets Executive Editor: Mark Szakonyi 202.872.1234, mark.szakonyi@spglobal.com Managing Editor: Benjamin Meyer 916.716.6272, benjamin.meyer@spglobal.com Managing Editor: Kevin Saville, 212.488.4282, kevin.saville@spglobal.com Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202.872.1228, bill.cassidy@spglobal.com Bill Mongelluzzo, West Coast 562.428.5999, bill.mongelluzzo@spglobal.com Eric Johnson, Technology 213.444.9326, eric.johnson@spglobal.com Janet Nodar, Breakbulk and Heavy Li 251.473.2742, janet.nodar@spglobal.com Greg Knowler, Europe +44.797.679.8770, greg.knowler@spglobal.com Ari Ashe, Southeast Ports, Intermodal Rail 202.548.7895, ari.ashe@spglobal.com Associate Editor, Northeast and Gulf: Michael Angell, 646.505.4712, michael.angell@spglobal.com Associate Editor: Teri Gri" is, 919.890.5602, teri.gri" is@spglobal.com Research Analyst, Project and Breakbulk Cargo: Susan Oatway, FICS, +44.7930.411659 susan.oatway@spglobal.com Senior Contributor: Cathy Morrow Roberson, 732.730.2533, cathy.morrowroberso@spglobal.com Data Analyst: Marcin Lejk , +44.58.741.6270, marcin.lejk@spglobal.com Shipper Engagement Manager, Breakbulk: Diana Hamm, 832.499.7368, diana.hamm@spglobal.com Senior Editor, Special Projects: Alessandra Gregory Barrett, 860.248.5238, alessandra.barrett@spglobal.com Senior Associate Editor, Special Projects: Ariane Pepsin, 215.789.7478, ariane.pepsin@spglobal.com Special Projects Coordinator: Amanda Hunter, 212.205.1226, amanda.hunter@spglobal.com Senior Designer: Sue Abt, sue.abt@spglobal.com Designer: Hannah Kidd, +44 203 253 2134, hannah.kidd@spglobal.com Sales: Cindy Cronin, Director APAC sales, 954.260.6061 Jean Gibbons, Senior Sales Executive West Coast, FL, GA sales, 706.469.7160 John Knowles, Senior Sales Executive EMEA, AU sales, +44.777.997.4677 Allyson Marek, Senior Sales Executive Northeast sales, 862.754.8012 Elaine Nosaka, Senior Sales Executive VA, NC, SC, Canada sales, 703.447.9555 Judy Welp, Senior Sales Executive Midwest, Gulf, Latin America sales, 512.284.2878 For Magazine Subscription Customer Service: www.joc.com/help 55 Water St., 39th Floor, New York, N.Y. 10041 Peter Tirschwell, Vice President-Shipping Intellience, S&P Global Chris Brooks, Executive Director-Shipping Intelligence, S&P Global Carmen Verenna, Manager, Production ©2023 Journal of Commerce — All Rights Reserved For more information, visit our website, www.joc.com. "There will be winners and losers. You have to place your bet."

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