Cover Story Breakbulk & Project Cargo
Jumping ship
High container rates , port congestion entice shippers back to breakbulk carriers
By Keith Wallis
Multipurpose vessel ( MPV ) operators are seeing a return of so-called spillover cargoes due to elevated container rates , shipping delays and port congestion . They are fielding inquiries from shippers who normally use liner services about transporting shipments — either containerized or as breakbulk cargoes — on alternative vessels .
Still , interest remains well below the level seen during the peak of the COVID-19 pandemic market two years ago , industry executives told the Journal of Commerce .
Most of the recent interest from shippers is for mode-malleable cargo — i . e ., freight that can be easily switched between breakbulk and container modes .
The spillover “ mainly involves cargoes that can be shipped either in containers or breakbulk , [ such as ] bagged cargo , forestry products [ and ] steel ,” said Arthur English , CEO of Bergen , Norway-headquartered G2 Ocean , a joint venture of open-hatch shipowners Gearbulk and Grieg Maritime . Typical bagged cargoes include rice , plastic pellets , coffee , minerals and other commodities .
In addition to cost , unreliable liner schedules are playing a role in the shift toward MPVs , according to Marc Willim , global head of chartering at AAL Shipping .
“ If a shipper is moving three containers per day and they are delayed by one , two or maybe three weeks , inventory starts to stack up and it makes sense to ship them by multipurpose vessels ,” Willim told the Journal of Commerce .
“ This particularly applies to specialized containers that are either out-of-gauge or classed as dangerous goods , with container carriers more limited in the amount they can take onboard ,” he added . “ In instances such as these , multipurpose carriers may then be the best option to maintain their ‘ just-in-time ’ productivity .”
G2Ocean
6 Journal of Commerce | September 2024 www . joc . com