Delayed recovery – but the worst is behind us

An optimistic project cargo sector appears to be putting the troubles of the economic downturn behind it – but there are still some uncertainties to deal with, from the impact of Japan’s earthquake disaster earlier this year to the continued unrest in the Middle East. Project and heavylift operators were hit by their own recession later than the rest of the shipping industry as major infrastructure projects and investments were postponed or cancelled as a result of the global crisis. Therefore recovery in the sector was also delayed, compared with its bulk cargo and container shipping colleagues, but is now on the up. “The worst is definitely behind us,” says Gerhard Janssen, marketing and sales director of Hamburg-based Rickmers-Linie. “There are a lot of projects on the drawing board and a lot of plans in the pipeline.” However, he said the uncertainty of the US economy, which is a big driver for project cargo, is having a negative impact on the market. “The big ticket investments are on hold and being postponed so there is some uncertainty, something we do not like to see. We don’t know when the situation will change and that has a big impact on us because the transpacific particularly eastbound is such an important trade,” he adds. Exports from Japan were affected by the earthquake disaster earlier this year, says Janssen. “While the Americans are having a good time selling things to Asia, it is still relatively quiet on Asia Pacific eastbound.” One area that remains strong for the project cargo sector is power generation, for which India and the Far East will be big drivers. “The number of people living in these places is increasing daily and they all want more energy – so that’s good for the project market,” he says. He also predicts that oil and gas exploration, and the price of fuel at the pump will inspire more investment. But the situation in Libya and unrest in Bahrain and elsewhere means that there is still an element of uncertainty.