Drewry: Bulking up on breakbulk ships

Drewry: Bulking up on breakbulk ships    Demand for transport on multipurpose vessels is expected to grow at an “a rate higher than that of the container and dry bulk sectors,” said Drewry Shipping Consultants, which has just published its Annual Multipurpose Shipping Market Review & Forecast 2011.
   “The multipurpose sector and in particular the project cargo arena, have experienced a prolonged emergence from the global recession due to the inherent time lag in much of the cargo demand for this sector. Things are now moving in a positive direction,” the London-based company said.
   Demand for multipurpose and project cargo, as measured in millions of tons moved, is expected to grow 7 percent annually to 2015, Drewry said. Project cargo, which must move on vessels with increased lifting capacity, is expected to grow even faster, at 11 percent per year.
   The company said problems faced in recent weeks by the Beluga Group, where several subsidiaries have sought insolvency protection in Germany, “have stirred concerns, but it is important to remember that this situation is one that is internal to that organization rather than being a manifestation of trading conditions.”
   Susan Oatway, editor of the Drewry Multipurpose Report, said, “the vessels that Beluga has contracted on a charter basis are likely to be released back into the market. But demand levels are such that these vessels will be sought after and are expected to be utilized by other operators.'
   Drewry said multipurpose ship operators face competition from operators of handy-size dry bulk, roll-on/roll-off, and container ships.
   “The real competition is stemming from minor or neo-bulk and general project cargo markets, which is where (multipurpose vessel) volumes are generated from,” the consultants note.
   Some container carriers have also highlighted their ability to carry what does not fit in containers, but can be carried on flat racks or    other specialized equipment. And some ro/ro carriers have improved their ability to move oversize cargo by building ships with better clearances and stronger decks and ramps. For example, last week Wilh. Wilhelmsen launched its largest ro/ro vessel, saying it had more flexibility to carry high and heavy cargo.
   Drewry noted order levels have reached 28 percent of the current fleet, with a skew towards those with a greater lift capacity. This indicates carriers are looking to niche markets where they can offer specialized services based around the project cargo demand increases.
   “Yes, competitive threat is a major concern for the multipurpose sector, but reacting in an innovative manner, which we can see happening already within the project cargo arena, is how carriers are going to capitalize on market conditions. Given the unfolding Japanese crisis there is yet to come a possible demand shift towards the very ships that constitute the multipurpose sector,' Oatway said. ' Chris Dupin