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unit loads Market outlook

ConfidenCe returning to breakbulk segment

Breakbulk shipping has inevitably been affected by global economic problems, but there are tentative signs that this particular market could be poised for a recovery.

The leading operators in this market tend to offer a mix of heavy-lift, project cargo and breakbulk services, and the consensus is that 2012 earnings from breakbulk operations were the same, or perhaps even below, 2011 levels.

raymond Fisch, senior vice president of BBC Chartering, tells The Baltic: “The supply situation regarding multipurpose tonnage continued to be a challenge for vessel owners in 2012. We saw declining volumes in some cargo segments and allocating vessels adequately, to maximise utilisation, was and remains an issue for all players in the market.”

However, there were also some positive trends. As Joerg roehl, chief commercial officer and head of marketing at Hansa Heavy Lift, points out: “Our experience is that cargo segments which require modern tonnage and tailored engineering solutions performed much better than others, especially in the oil and gas industry. We are cautiously optimistic for 2013 and anticipate higher market growth in the medium term.”

As well as good levels of demand from oil and gas customers, another factor underpinning renewed confidence is a slowdown in the delivery of new multipurpose project (Mpp) cargo ships in 2013, after several years of significant fleet growth. Mr Fisch says: “We expect growth in the supply of tonnage to weaken, and it seems likely that the market will slowly get more balanced again. However, we expect price competition will be fierce and rate recovery to be muted at best.”

Consolidation in the industry is also expected to create more stable market conditions. The merger between

new construction orders hint that the sector could be approaching an upturn. Clive Woodbridge peruses the orderbooks

Heavy-lift specialist Mammoet has delivered a specially designed linkspan bridge to Associated British Ports’ Port of Grimsby as part of the port’s £26m Grimsby River Terminal development.

The linkspan arrived on the crane barge Mammoet Amsterdam.

John Fitzgerald, ABP’s port director for Grimsby and Immingham, said: “It’s great to see this exciting phase in the development of the Port of Grimsby take shape with the addition of this

new linkspan. The new terminal is on course to secure Grimsby’s position as the UK’s leading car import facility.”

The Netherlands-headquartered Mammoet specialises in tailor- made heavy lifting and multimodal transport solutions.

MaMMoet undertaking

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intermarine and scan-Trans in 2012, creating a company with more than 50 multipurpose and heavy-lift vessels in its fleet, is the most significant example to date. More recently, Clipper projects announced the creation of a new Mpp pool, together with Enzian ship Management of switzerland and Freese shipping of germany, which will initially comprise 14 15,000-20,000 dwt vessels.

Kristian Morch, chief executive of Clipper projects, explains: “The creation of this pool is in line with Clipper projects’ strategy to participate in the consolidation of

the multipurpose market, and we believe that the pool will form a solid platform for further growth.”

While investment in new tonnage is undoubtedly slowing down, some companies are continuing to place orders for new ships. rickmers-Linie has, for example, ordered two 20,000 dwt multipurpose newbuildings with a fuel-efficient design from Hudong-Zhonghual shipbuilding in China, for delivery in 2015. Managing director Ulrich Ulrichs says: “Bearing in mind that the current multipurpose and heavy-lift orderbook shows that deliveries from 2015 onwards are

very few, we are confident that there will be strong market requirements for these excellent vessels.”

Another company that has dipped its toe back in the newbuilding market is nordana of Denmark. The company has confirmed orders for four 12,000 dwt multipurpose heavy-lift ships from the Taizhou sanfu shipyard, for delivery starting in 2015.

Meanwhile, existing investment in new ships is working its way through the system. BBC Chartering has one of the biggest newbuilding programmes, totalling 35 ships. in January 2013 the company took delivery of the BBC

BBC AMeTHysT, A sisTeR To THe ReCenTly deliveRed

BBC MoonsTone

While investment in new tonnage is undoubtedly slowing down, some

companies are continuing to place orders for new ships

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unit loads Market outlook

// clive woodbridgeClive has been writing about shipping, ports and transport for more than 30 years. He has contributed to and edited many leading publications.

Danube, the seventh and last in a series of 17,000 dwt multipurpose heavy-lift ships. Other new vessels that have entered the company’s fleet recently include the BBC Vesuvius, the seventh of eight 9,300 dwt vessels; BBC Moonstone, the eighth of 14 14,360 dwt vessels; and BBC Bahrain, the last of six 8,000 dwt multipurpose ships.

As well as modernising their fleets, leading breakbulk vessel operators continue to position themselves to take advantage of emerging market opportunities by setting up new offices and upgrading services. since the beginning of January, Hansa Heavy Lift has been represented in india by Allcargo Logistics, as part of its growth strategy. Mr roehl says: “india is a growing market with a lot of potential. The presence of an exclusive agent locally is an important strategic step for us and will improve service levels for customers in this region.”

in 2012, BBC Chartering set up three new offices, in Antwerp, istanbul and perth, and added capacity on some trade lanes due to demand. For example, frequency on the Andino Line service between Houston and the west coast of south America has been increased to weekly.

“south America, Asia and increasingly Australia and West Africa are important markets for our part of the shipping industry,” says Mr Fisch. “We expect the offshore oil and gas sectors in these regions will provide numerous opportunities for breakbulk and project cargo shipments in future.”

West Africa is also a focus for newly created safmarine MpV, which has been established in Antwerp as an independent business in the Ap Moller-Maersk group. The company offers niche liner services for project and conventional breakbulk cargo

between Europe, the Us, south Africa and West Africa, using a dedicated fleet of owned and chartered-in multipurpose vessels.

safmarine MpV managing director Jorg Knuttel suggests that: “setting ourselves up independently allows us to cater more towards our customers’ needs.” The transition to an independent safmarine MpV is scheduled to be completed by the end of the first quarter of 2013 and will involve establishing a stand-alone agency network outside that provided by Maersk and safmarine.

As a first step, the royal Burger group has been appointed to act as liner agent for Belgium and the netherlands, and other appointments will follow in the key markets covered by safmarine MpV, whose fleet includes newly built multipurpose vessels that have been purpose-designed for African conditions.

oil And GAs CARGoes HAve Been less AffeCTed

THAn oTHeR MARkeTs, RePoRTs HAnsA HeAvy lifT

Breakbulk vessel operators continue to position themselves to take advantage of emerging market opportunities