A Word From GPLN: Issue 82 / September-October 2021
The current market situation has seen a complete reversal of roles between the container shipping segment and the breakbulk and MPP sector. While traditionally container vessels competed for project cargo, nowadays, breakbulk, MPP and even heavy lift vessels are loading containers. Looking back 12 to 18 months, the container carriers aggressively pursued project cargo. According to some reliable sources, the rates were at an unsustainably low level and it was almost a race to the bottom which saw a number of companies going out of business. However at present you can see goods taking over containers and being transported as breakbulk, and containers moving directly to breakbulk, and even to heavy lift vessels with 900-ton lifting capacity. That means that project cargo and breakbulk cargo are now exposed to the developments in the container market. With this capacity crunch, the question is whether there is actually a place for project cargo on container ships. Using the container vessel for out-of-gauge cargo means sub-optimization of the vessel’s capacity, the same goes for loading containers on a vessel with large lifting capacity and some port pairs allow for better transit times and reduced costs. Shipping companies agree that the capacity crunch has pushed the rates up which is great from their own perspective. The higher rates could also lead to more investments in fleet expansion. But recently some shipping companies have decided to cap spot rates increase in order to prioritize its long-term relationship with customers.
In other news Egypt has signed a deal valued at roughly USD 4.45 bn for the construction of a high-speed electric railway linking the Red Sea and the Mediterranean. A consortium comprising Siemens Mobility, Orascom Construction and Arab Contractors will develop the landmark project that has been dubbed the “Suez Canal on rails”. The 660 km connection, which links the port cities of Ain Sokhna on the Red Sea to Marsa Matrouh and Alexandria on the Mediterranean, is forecast to carry more than 30 million passengers annually and will feature a dedicated freight line. Siemens Mobility’s share of the contract is some USD 3 bn and it will provide the high-speed and regional trains, locomotives, rail infrastructure and related services. In addition to benefiting passenger travel, the first fully electric mainline rail network in Egypt should also create thousands of local jobs and open up huge possibilities for freight transportation.
As announced earlier GPLN will conduct the renown Heavy Lift Maritime and Transport Seminar on May 20, 2022 at the Hilton Hotel in Rotterdam, followed by its 17th Annual General Meeting from May 20-22, 2022 at the same hotel venue.
Both GPLN events can be combined with Breakbulk Europe which is scheduled ahead from May 17-19, 2022 at Ahoy Convention Center Rotterdam. GPLN will exhibit at this event and has secured a prime location in the main hall. We have booked 36 sqm which is the equivalent of 4 regular stands.
We are looking forward to meet our members again in-person during these GPLN events and share our booth with several GPLN members after 2 years away from mingling with fellow project logistics specialists.
All upcoming events are obviously subject that the world is back to normal in 2022.
Stay safe and healthy!
Your GPLN Team
New GPLN Members / September – October 2021
||Powerhouse International (QLD) Pty Ltd
||Greenshields Project Cargo S.r.l.
||ColliCare Projects & Logistics AS
||Militzer&Münch Ulus. Nak. ve Loj. Hiz. Tic. A.S.
||Ho Chi Minh City
||Bee Logistics Corporation
||NAKAMA Worldwide Solution