Multipurpose Shipping News

AAL Shipping has claimed a first for becoming the first project heavy lift carrier to publish a carbon surcharge guidance to help its customers prepare for the increased costs related to forthcoming European Union regulations on carbon emissions.The move comes ahead of the extension of the EU Emissions Trading System (EU ETS) to cover the maritime industry, affecting shipping lanes between Europe and the rest of the world from January 1, 2024 with fixed charges for every ton of CO2 emitted.With these additional costs directly attributed to multipurpose cargo operations…

AAL Shipping has acquired two secondhand multipurpose heavy lift vessels, expanding its core fleet to 720,200 total deadweight (DWT).The 2010-built Pacific Action and 2009-built AAL Gladstone have both served in the AAL fleet in the past and are due to rejoin later this month – the former renamed this week, AAL Gibraltar. The G-Class vessels feature a total cargo intake of 35,705 cubic meters, four large cargo holds, three tweendecks and a maximum lift capacity of 240 tonnes.

With widespread discussion and reporting about the IMO 2020 ‘Sulphur Cap’ regulation, coming into effect January 1st 2020, we would like to clarify our position and how we plan to move forward over the coming weeks and months to fully prepare ourselves and our customers for this important and long-awaited milestone in our sector’s history. Kyriacos Panayides, Managing Director, AAL, weighs in on the issues:The purpose of the new regulation is to reduce sulphur oxide (SOx) levels produced across the entire shipping industry…

Surging growth in renewable energy generation around the world and a construction boom in South East Asia that is expected to run for the next 10 years bode well for the once ailing multipurpose shipping fleet.In the latest edition of Drewry’s Multipurpose Shipping Forecaster report we declare that we remain cautiously optimistic on the outlook for the sector. There are some caveats to this optimism as global general cargo demand is forecast to grow at a rate of just 2% per year to 2022, while the multipurpose and heavylift fleet is expected to contract at less than 1% per year over the same period.Meanwhile, the threat of a trade war…

China Navigation Company (CNCo), part of the Swire Group, has expanded its presence in North America by establishing a branch office in Vancouver, Canada.The opening ceremony was graced by Bruce Ralston, Minister of Jobs, Trade & Technology, British Columbia, who unveiled a plaque in the CNCo office located at W Hastings Street.Minister Bruce Ralston said, “The Province recognises the significant contribution that The China Navigation Company makes to the shipping industry worldwide. We look forward to this new regional North American office in Vancouver contributing to increased trade between B.C. and the Asia Pacific. A strong shipping industry will create good jobs for people and increase opportunities for B.C.

Compared to new technologies, conventional engineering in shipping is a relatively simple science: computable and generally predictable. However, heavy lift shipping presents challenges that go far beyond what is required with standard unitized cargoes. The transportation of project cargoes - often highly valuable components of multi-billion-dollar projects - requires expert planning to ensure they are loaded and transported safely and efficiently. Last year AAL shipped two giant cyclone vessels (22m x 11m x 10m and weighing over 500mt each) to Petronas’ $27 billion RAPID project in Malaysia.

The multipurpose shipping market, including the breakbulk and project cargo sectors, has struggled over the last few years, but conditions are ripe for recovery, according to a recent report from shipping consultancy Drewry. A strong start to 2018 in the multipurpose shipping segment is expected to continue as the sector’s recovery advances further on increasing demand, contracting vessel supply and shrinking threats from competing sectors, Drewry reported in the latest edition of its Multipurpose Forecaster and Annual Review.

Recovering demand for multipurpose shipping combined with improved market conditions for competing sectors will result in rising market share for the multipurpose shipping fleet and a recovery in freight rates in 2018, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Although China’s plans to curb steel production in an attempt to clean-up the air pollution blighting its cities may well slow steel exports over the short term, the longer term outlook is still positive for the multipurpose and heavy lift sector. The clean-up campaign has resulted in a decision to cut some 50 million tons of steel production from 4Q17.

Many key drivers for dry cargo demand have reported a significant uptick in 2017, resulting in improving conditions for all vessels in the multipurpose shipping sector, according to the latest Multipurpose Shipping Market Review and Forecast report published by global shipping consultancy Drewry. This year started out well with most demand drivers for the breakbulk sector strengthening from the lowest levels seen in 2016 with the trend forecast to continue in the medium term at least. The exception is the price of oil for which forecasts suggest is unlikely to rise over $55 a barrel for the next few years. Whether that is sufficient to rekindle investors’ interests or not remains a moot point. The demand for breakbulk commodities and project cargo comes from a wide variety of sources.

Following another poor year for multipurpose shipping with further erosion of rates making it the worst market in over 10 years, signs of recovery are now evident with momentum expected to build over the next few years, according to the latest Multipurpose Shipping Market Annual Review and Forecast 2017 report published by global shipping consultancy Drewry. Dry cargo demand is forecast to grow by around 3% in 2018, but within that figure it is the market share available to multipurpose vessels which is more interesting. Drewry estimates that the multipurpose (MPV) share of bulk trades in the peak year of 2007 was about 17%, while the share of general cargo trades was nearer 20%.

The multipurpose shipping market will see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Dry cargo demand is weak but strengthening with multipurpose shipping market share expected to grow at just under 2% per year to 2020. Demolition levels are up in both the multipurpose and competing sectors, whilst newbuilding ordering has waned, which will result in minimal aggregate multipurpose fleet growth to 2020. The future market prospects for the multipurpose shipping sector are not only dependent on the supply-demand balance for that segment…

The multipurpose shipping market will see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Dry cargo demand is weak but strengthening with multipurpose shipping market share expected to grow at just under 2% per year to 2020. Demolition levels are up in both the multipurpose and competing sectors…

The last three months have been some of the worst the multipurpose and project carrier sector has endured in living memory. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Rates have continued to slide to barely cover operating expenses, as the competing sectors of container ships and bulk carriers have weakened the MPV market ever further in their search for market share. The container lines lost billions of dollars as they filled slots no matter what…

The demand outlook for the multipurpose fleet has not improved since the first quarter of 2016. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. On the other side of the equation, the supply of multipurpose vessels is under control, with an order book equivalent to just 5% of the operating fleet and growth estimated at less than 0.5% per year between now and 2020. However, it is the oversupply of the competing fleets that continues to erode the market share available to the multipurpose sector and in turn any positive growth.

The multipurpose shipping market is not expected to recover until the end of 2017, when it is anticipated that there will be more bulk demand for the Handy vessels and therefore more breakbulk cargoes for multipurpose vessels, according to the latest Multipurpose Shipping Market Review and Forecast 2016 report published by global shipping consultancy Drewry. The last 12 months have been dreadful for the multipurpose vessel (MPV) market with rates at rock bottom and competition for cargo from every angle. Weak demand, coupled with falling commodity prices and the oversupply of tonnage in competing sectors has brought rates down to levels not seen since just after the global financial crisis.

Global shipping consultancy Drewry Maritime Research said the breakbulk shipping market is expected to remain weak until 2017, citing low freight rates and high competition. Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the Multipurpose Shipping Market Review and Forecaster, published by global shipping consultancy Drewry. The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).

Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the Multipurpose Shipping Market Review and Forecaster, published by global shipping consultancy Drewry. The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).

A Singapore-based breakbulk, project cargo and heavy lift carrier AAL (formerly Austral Asia Line) and German multipurpose shipping operator Peter Döhle have announced the launch of a new global cooperation. From June onwards, the pair will offer joint tramp and project services. For, they have pooled a fleet of 26 multi-purpose heavy-lift vessels on trade routes between Asia, Europe and the Americas starting June 2015. The two carriers will remain independent of each other, with separate ownership, operations and identities. However, across a number of key trade routes between Asia, Europe and the Americas, they will deploy and jointly represent what they claim is the market’s youngest fleet of 26 multipurpose heavylift vessels.

The Multipurpose sector faces a difficult couple of years, but its long-term prospects are good, according to Drewry Maritime Research’s latest Annual Multipurpose Shipping Market Review and Forecast report. Most owners of Multipurpose ships (MPVs) were fairly upbeat at the start of 2012 and, in spite of weak freight rates, continued to be so well into the first half of the year. However, over the course of the year the market softened further and by the year end most sectors had lost between 3 and 6% off their value for one-year period hire. Susan Oatway, author of the Multipurpose report, explained, “Competition from the container sector becomes ever more aggressive in the face of their dire market conditions.

Drewry Maritime Research’s latest Annual Multipurpose Market Review & Forecast details the state of the multipurpose fleet, the demand for the cargo space on those vessels and the outlook for the market they trade in. Project carriers and heavy lift are covered in detail to reflect the anticipate growth in demand. London, UK, 29th March 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.

Drewry’s latest Multipurpose Shipping report reveals that rates have started to firm again and the demand outlook is steady for both breakbulk and project cargo, while the fleet supply is under control. MPV market share continued to rise over 2011 as non-containerised cargo volumes benefited from the rise in general cargo trade. Those volumes are expected to continue to rise throughout the forecast period, however Drewry expects the MPV share to drop from 2014 onwards, due to competition from both the container and Handy sectors. One of the principal contributing factors to MPV demand is general and project cargo where there was a significant increase in volumes during 2011.