Despite moderate growth
in cargo volumes, there’s
been little effect on
freight rates in the project
cargo and breakbulk sectors
because of competition, says
Raymond Fisch, senior vice
president of BBC Chartering
& Logistic.
And while growth in demand
leads to growth in capacity,
increasing operating expenses
– like marine fuels and
required anti-piracy measures
– intensify competitive
pressure, says Fisch. “As we
know the project cargo and
breakbulk shipping sector has
been heavily shaken up in the
past three years and today
we still see shipping capacity
being offered below cost by
some market participants,” he
told FTW.
According to Fisch, the
carrier does not expect
the demand situation to
dramatically change. “It seems
likely it will continue to grow
at moderate levels while
we expect slower capacity
growth. The result will be a
relative decline in capacity
sooner or later through
scrapping of old assets, for
example, and growth in
demand will exceed supply.”
Fisch believes there is room
for optimism.
“Although the situation
remains testing, we have
reason to believe that we have
marched through the deepest
vale of this last crisis and
now it seems the industry
sees signs of recovery.
Still, managing cash flows
is paramount in today’s
environment.”
And he believes the
opportunities lie in the
challenges. “There are three
areas of interest from a heavy
industry perspective,” he told
FTW. “The first is electric
power and energy. This is a
pre-requisite for the success of
any industrial society and its
quality of life. Opportunities
lie in anything that relates to
power or energy generation,
processing and distribution,
equipment, components,
materials and associated
products or services.”
Secondly, says Fisch, with
millions of people relocating,
moving and even building
new cities, more mining,
excavation and construction
equipment is needed. And
that drives demand for
heavy industry equipment,
engineered solutions and
associated services.
The third area of interest
lies in infrastructure and
transportation services, ports,
vehicles and heavy equipment
that are required to move
people and objects wherever
needed.
“All these sectors will
continue to drive and dominate
demand for heavy lift and
project shipping in the future,”
he said.
INSERT
‘Demand will continue
to grow at moderate
levels while we expect
slower capacity
growth.’
CAPTION 1
BBC Amethyst ... part of the line’s approximately 150-strong fleet.
CAPTION 2
Raymond Fisch … ‘Opportunities lie in
anything that relates to power or energy
generation.’
CAPTION
