The growing number of projects in the renewables sector combined with the improved oil price has led to the strengthening of the project cargo sector which is good news for the global multipurpose vessel fleet (MPV).
According to Susan Oatway, senior analyst for multipurpose and breakbulk shipping at Drewry, the demand for project carriers is increasing and expectations for the sector have improved significantly in the past 12 months.
“This time last year we were cautiously optimistic, but I think we are now happy optimistic,” she said when asked about the general outlook for the sector over the next five years. “Project cargo has been a big driver of the recovery in the MPV sector. A large part of this can be attributed to the recovering oil price as a higher oil price is directly linked to more investment in projects.”
She said last year there had been a lot of talk about the oil price going to $70 per barrel for real project investment to kick off again.
“And it has done so this year so we are very optimistic for the project sector and the MPV sector in general. Renewables, of course, are just as important and are the mainstay. Renewable power is expected to grow three times faster in the next 15 years than it has done in the past 15.”
As of June this year, the global MPV fleet as defined by Drewry (including heavy and non-heavy lift capabilities) stood at 3191 vessels with a combined total deadweight of 29 500 million tonnes and average age of 16 years.
“This is a decrease since our last report as demolitions have outstripped new deliveries causing a contraction in vessel numbers,” said Oatway. “However, more larger vessels are being delivered than demolished so in deadweight terms the fleet is stable.”
She said project carriers were now forming the majority of newbuilding deliveries, while vessels being demolished were by far the smaller, simple multi-purpose ships with less than 10 000 deadweight.
“At least 45% of the total MPV fleet in deadweight terms is now classed as project carrier or heavyweight with some 900 vessels with a lift capability in excess of 100 tons. Of those 340 have lift of over 250 tons and 25 have lift of over 1000tons.”
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Project cargo has been a big driver of the recovery in the MPV sector. – Susan Oatway
