A Word From GPLN: Issue 74 / March-April 2020
If the Covid-19 outbreak is contained by the fourth quarter of 2020, demand growth for breakbulk and project cargo will stagnate over the next two years, according to consultancy Drewry. They expect multipurpose and heavy lift cargo demand growth to rise at an annual rate of just 0.3 percent until the end of 2021, as the longer-term economic fallout causes recessions in multiple countries.
The Covid-19 outbreak has virtually affected every industry. For the renewables sector, construction of wind and solar projects in China has slowed over the last few months due to the Covid-19 outbreak, hampering the return to work after the Lunar New Year holidays. However, recent reports suggest that turbine production is on the increase again in China. Europe is a major manufacturing hub for wind turbines but the European manufactures have been forced to close their facilities in Spain and Italy since mid-March. According to WindEurope, a total of 18 factories have been closed, including facilities of leading manufacturers like Siemens Gamesa, Vestas, Nordex and GE-owned LM Wind Power. Additionally, a number of onshore construction sites in Scotland have come to a standstill and Atlantique Offshore Energy has halted the construction of the electrical substation for the Saint-Nazaire offshore wind farm. Meanwhile, the recent lockdown in India required wind turbine and solar PV component manufacturers to close until mid-April.
Of all the unprecedented swings in financial markets since the Covid-19 pandemic broke out, none has been more significant than the recent collapse in a key segment of U.S. oil trading. The crude oil price fell for the first time below zero. That means that oil producers are now paying customers to take their stock! Or in other words: A barrel of oil is now cheaper than a coveted roll of toilet paper!
In the meantime, we have postponed our AGM in Casablanca from this year to May 15-17 in 2021 at the Parkhotel in Bremen/Germany, just ahead of Breakbulk Europe (May 18-20, 2021), so that our delegates can combine next year both events in the same city. All relevant details are published on our dedicated AGM page of our website. This is obviously subject that the world is back to normal by then.
As you know this year’s Breakbulk Europe has been also rescheduled and will now take place from September 29 to October 1, 2020. GPLN will exhibit at this event and has secured the same prime location in the main Hall 5 of Messe Bremen and still a few spaces are available for GPLN members who would like to join and share our stand. Right on the day Breakbulk Bremen starts in the evening, on September 29, we are organizing again our renowned Heavy Lift Maritime and Transport Seminar at the Parkhotel which is located within walking distance to the exhibition center. This technical course is also open for non GPLN members and offers a great opportunity to learn more about Heavy Lift Shipping and expand technical abilities and knowledge for project cargo business. More details are available on our website. Both our participation at the Breakbulk Expo and our Seminar are obviously subject that we’re back to normal conditions allowing us to travel and participate safely.
At the time of writing we are also planning to exhibit at Breakbulk Americas in Houston which was postponed from end of September to November 3-5, 2020. However, this year we will skip Breakbulk Asia in Shanghai which was rescheduled to August 3-4, 2020.
Stay safe and healthy!
Your GPLN Team
|New GPLN Members / March – April 2020
|| CLASQUIN CHILE SPA
|| Fly Dragon International Transportation Co.