Cover Story Breakbulk & Project Cargo resulting from longer transits . These extended routes and operational uncertainties can potentially prompt shippers to seek more reliable and efficient alternatives .”
Rate-driven shift
Significant rate increases for containerized cargo out of China and certain ports in southeast Asia are fueling shipper interest in shifting to MPVs , G2 Ocean ’ s English said . G2Ocean has seen an increase in inquiries from the middle of the second quarter onwards for cargoes “ mainly out from China to key export destinations [ like ] Europe , the US , South America , etc .,” he said .
“ We are always trying to be as flexible as possible for our customers and help out when shifts in the market occur ,” English added . “ The demand has been slowing down a bit since July as container rates out of China have been dropping . We still receive inquiries about container cargos , but not at the same level as a few months ago .”
Copenhagen , Denmark-based bulk and breakbulk carrier Norden has also seen cargo shift to MPVs and bulkers , primarily on trades from Asia to North America and Europe . The carrier has managed an increase in both physical breakbulk and containerized cargoes and inquiries over the past six months , a Norden spokesperson told the Journal of Commerce .
Constraints , including drought-driven congestion at the Panama Canal , which is now easing , and diversions driven by turmoil in the Red Sea region have “ further reinforced the desire for charterers to seek options outside of container shipments ,” the spokesperson said .
“ We would only use containers on breakbulk ships if we reached a critical sustained failure of container liner services .”
“ Increasing container rates may also motivate shippers to explore MPVs as viable alternatives ,” he said . “ These vessels offer greater flexibility and capacity for non-containerized or oversized cargo .”
email : keithwallis @ hotmail . com www . joc . com September 2024 | Journal of Commerce 9