Cover Story Breakbulk & Project Cargo
Some modemalleable cargoes are shifting back to MPVs , but not at the rate seen during the pandemic . AAL Shipping
Arthur English CEO , G2 Ocean
However , many shippers who normally use liner services but resorted to moving containers on MPVs and general cargo ships during the worst of the pandemic market are not at the point of revisiting those desperate moves .
“ We see containers on breakbulk as a high-cost contingency measure , but are glad to have it in our toolbox ,” a senior manufacturing company logistics executive said .
“ We would only use containers on breakbulk ships if we reached a critical sustained failure of container liner services on our lanes ,” the executive said . The higher costs and extended dockside dwell times for loading and unloading containers and breakbulk cargoes from MPVs , rather than more efficient container terminals , make this a lastditch choice , he added .
Increased inquiries
MPV and general cargo carriers expect to see some spillover interest last as long as container rates remain
Marc Willim Global Head of Chartering , AAL Shipping
Lars Feller CEO , dship Carriers
elevated , container ships continue to sail at full capacity and / or shipping schedules continue to be disrupted . While trans-Pacific container rates to the US West and East coasts have come down from their early-July peaks , average rates are still the highest since September 2022 , according to Platts , a sister product of the Journal of Commerce within S & P Global .
Spot container rates from Asia to the US West Coast reached $ 6,000 per FEU as of Aug . 22 , according to Platts , down from $ 8,133 per FEU on July 5 . Asia – East Coast rates have fallen from just over $ 10,000 per FEU to $ 8,825 per FEU during that time .
“ On our own trade lanes , we have received several inquiries from shippers for breakbulk cargoes ex-China that were previously moved by container lines ,” AAL ’ s Willim said . However , he stopped short of calling this a trend . “ As yet , we have not seen a real shift or trend , especially compared to COVID times ,” Willim said . “ The inquiries so far have been the types of cargoes that we usually see coming back to multipurpose carriers from time to time , such as bagged , palletized or packed cargoes . Demand for our capacity continues to stem from heavy-lift and project cargo clients .”
Hamburg-based MPV / HL carrier dship Carriers is also seeing an increase in inquiries regarding cargoes that are traditionally moved by containers , CEO Lars Feller told the Journal of Commerce . “ While it is only a partial increase , it is enough to indicate a slow shift ,” he said .
“ A significant shift has not yet materialized . However , several potential triggers could prompt such a transition ,” Fellers said . “ One key factor could be linked to delays and shortages of tonnage
8 Journal of Commerce | September 2024 www . joc . com