... although it could make sense on
certain routes
Alan Peat
A LOT of major exporters who have switched from breakbulk to containers are now assessing the financial benefits of a possible switch back to avoid the huge increase in port charges, an executive in a ships agency told FTW.
However, although he noted this new trend following the Portnet announcement of a significant increase in terminal handling charges (THC), others felt it was more wishful thinking rather than a practical reality.
Alan Rolfe, operations manager of MSC, and chairman of the Association of Shipping Lines (ASL), told FTW that he had seen no evidence of such a trend in his own line's dealings.
There just aren't enough breakbulk ships now regularly calling at SA ports, he said. And, except to the Indian Ocean Islands - where a lot cargo types tended to suit breakbulk transport - not much demand that he had noticed.
Another line executive suggested the same adding that any switch to breakbulk would lay a new demand on shippers. "You would have to have someone reliable at the other end to handle a breakbulk cargo properly," he said. "But not many shippers have these sorts of contacts, having gone through so many years of containerisation.
"Anyway, look at the container rates to the Far East. They're now so low that breakbulk couldn't beat them for price."
Alan Ainscow of Bolton Maritime, agents for the US multi-purpose operation Uni Shipping, agreed.
"The Far East rates are rubbish, and those on the north-south trade to-and-from the North West Continent (of Europe) are much of a muchness when compared to breakbulk."
But, Ainscow added, it was on the westbound sea lanes connecting with the Americas where true breakbulk savings were to be found.
"The container rates there are very high," he said.
"If you've got relatively small parcels, you should ship breakbulk."
He bases this on the calculation that - for a 20-ton parcel - full liner terms breakbulk will cost you US$65-US$70 a ton. A container, he added, will cost you a minimum of US$2000 - so your 20-t cargo will travel at US$100/t.
"There's also a US$375 THC for containers at the other end," said Ainscow, "so breakbulk is about half the price."
It's probably a bit early to tell if this is some sort of trend, another ships agent told FTW. But he suggested that any switch is more likely from containers to bulk, rather than breakbulk, if any real savings are to be made.
