Moving giants

Ulrich Ulrichs, CEO at BBC Chartering, believes that the break-bulk sector can look to the future with fundamental optimism. The energy sector, in particular, is well positioned in both the renewable energy and the oil and gas sectors. The same applies to the mining and metals industries. However, since the associated developments vary in intensity worldwide, it is difficult to derive generally valid statements about market and freight rate developments from these trends. “While rates in Asia will rise more sharply due to high demand, I predict that the rate movement in other parts of the world will be more moderate,” forecasts the managing director of the Briese Group’s shipping company, considered the global market leader in heavy-lift and project cargo shipping.

“These rate increases have been triggered,” he continues, “by the higher costs that market players will face in the coming months.” On the one hand, a large number of multipurpose freighters are being delivered to bolster the ageing fleet, and these are over 50 per cent more expensive than the ships ordered before the Covid-19 pandemic. “On the other hand,” Ulrichs adds, “environmental costs and taxes will certainly continue to rise. This will mainly affect trade, both to and from Europe and within Europe, too.” “The ever-increasing administrative burden of these regulations and taxes further increases the overall costs facing ship owners and carriers,” he concludes. “All of these are costs that ultimately have to be paid by the customers.”

Nevertheless, Ulrichs feels that rising costs are not the only challenge that the break-bulk market will have to contend with in the foreseeable future. “There’s also the growing number of wars, the risk of piracy and the increasing number of international trade restrictions,” he explains. “And let’s not forget the skilled worker shortage, which is perhaps the biggest challenge of all. After all, we’ll need enough qualified and motivated employees to deal with the demands that charterers and stakeholders place on us.”

BBC Chartering is, however, approaching 2025 with courage and confidence. The company’s focus is on the delivery of ten “LakerMax” series vessels and additional F500-type units, which will be delivered by 2026. “The investment in the new multipurpose heavy-lift project carriers is a sign of the confidence that our owners, the Briese family, have in BBC Chartering’s project and heavy-lift business, and ensures that we have the necessary capacity to maintain our market position with modern tonnage,” Ulrichs continues. “After all, ships are generally very long-term investments and often in service for two decades or more.”

Transshipment of wind power components on the “BBC Leer” – renewable energies are providing a boost for the break-bulk industry.

Karl Gross is using the current political developments as an opportunity to offer alternative routes and to use other modes of transport or types of ships.

According to Steffen W. Fulst, Managing Director at Karl Gross Internationale Spedition, whether project logistics are currently operating successfully depends to a large extent on the country and commodities of those involved. “It’s a question of perspective,” he says. “From a German point view, mechanical and systems engineering goods are currently facing difficulties, while wind power and renewable energies are on the rise overall,” he explains. In terms of the global trade flows that his company serves in project logistics, he has also identified a consolidation of supply chains with the USA, which has now replaced China as the key country for Karl Gross. “Plus, countries like Vietnam, Saudi Arabia and India are becoming increasingly significant. Vietnam is well on its way to becoming the ‘new China’ as a production location,” he adds.

He views the geopolitical developments around the world with concern, particularly the security situation in the Red Sea and the attacks by Houthi rebels. “As a result, many shipping companies and freight forwarders are being forced to take the detour via the southern tip of Africa,” Fulst continues, “yet we also see this development as a challenge to offer our customers alternative routes and to use other modes of transport or types of ships.” In general, the current global situation means that project logistics need to tread a fine line between being courageous, making binding commitments followed by “subject to” statements. “Particularly when it comes to how long prices are valid for, such as freight costs. Here it is difficult to make long-term forecasts. A mix of Hanseatic commercial acumen, foresight and excellent market knowledge is needed here to develop resilient transport concepts that meet the customers’ requirements,” the manager explains. In this respect, it is probably an advantage for Karl Gross that the company specialises in intercontinental transport solutions and offers these by land, sea and air. “Our project teams are familiar with the unique aspects of each continent, and various suppliers in a range of countries on different continents, time differences and multilingualism are part of their daily business.”

With the new berths, Cuxport is responding to the high demand for transshipment and storage capacities in the onshore and offshore wind power sectors.

New terminal space and inland waterway transport as an alternative

In view of the latest developments in Cuxhaven, Roland Schneider, Head of Business Development at Cuxport, is quite clear. “Our trust in the market demonstrates our courage,” he says. “This trust is reflected, among other things, in our willingness to invest in new terminal space.” This refers to the co-financing of berths 5 to 7, the construction of which began at the start of the year. From 2028, special ships for the wind industry will be able to transship their goods there over a length of 1,250 metres. Cuxport will receive the terminal concession for berths 5 and 6.1, while the contract for the adjoining terminal area 6.2 and 7 has been concluded with Blue Water Breb.

“This step increases Cuxport’s total terminal space by a further 19 hectares to 63 hectares,” says Schneider “We’re still seeing high demand for transshipment and storage capacity in the onshore and offshore wind power sectors,” he adds, with a view to project logistics. “This is not only due to our ideally suited port areas but also to the excellent connection to the A27 motorway.” Besides large quantities of onshore and offshore components, numerous transformers, trucks with components for the aviation industry, construction machinery and agricultural machinery were also handled in Cuxhaven.

“Dilapidated motorways and bridges, and inadequate parking facilities currently present a major obstacle for large and heavy goods vehicles in hinterland traffic,” Schneider warns, despite his confidence in the market. This is why the use of inland waterway transport is currently being examined as a possible alternative for moving heavy and project cargo. “Rhenus offers its customers a significant advantage here due to the extensive services and capacities of its subsidiaries, Rhenus Partnership and Deutsche Binnenreederei, and the opportunity to map entire supply chain sections between the port and the start and destination points,” says Schneider, making the case for inland waterway transport. The latter is particularly suitable for nacelles, machine houses and tower segments in the onshore sector, but also for many other break-bulk and heavy-duty goods.

A plea for more port co-operation

From the Bremerhaven site, Stefan Nousch, Managing Director of Atlantik Hafenbetriebe Geuther & Schnitger (AHB), has mixed feelings when he talks about the current development of high-and-heavy volumes and the RoRo ship calls at the port. “From 2012 to 2019, around 1,500 to 1,600 deep-sea carriers moored here each year,” he explains. “Currently, the figure is between 800 and 900. This isn’t only because of the slowdown in automobile exports, the decline in tenders for major projects and the Covid-19 pandemic.” The ports of Bremen have plenty of assets to fall back on. “These include, first and foremost, the good hinterland connections from all over Europe and the trimodal connection,” he adds. “In future, though, we must also market the good communication that reigns between shipowners, customers, authorities and individual port companies more prominently and more courageously – in line with the Bremen merchants’ proverb: ‘Buten un binnen – wagen un winnen’.” Indeed, many competitors from Germany and beyond have recently been more active in their marketing and have attracted extra custom as a result.

In addition, regional competitive thinking is still very pronounced in Germany. “The German Ports idea is great, but we should implement it better,” says Nousch. For example, last year AHB demonstrated how this can be done in cooperation with EVAG Emder Verkehrs und Automotive Gesellschaft and the shipping company NYK. In view of the limited capacities in Bremerhaven, the project partners decided to transship two Liebherr LR 1800 and LR 1700 crawler cranes in Emden and transport them to Yokohama by RoRo ship. The EVAG team took responsibility for stowing the roll trailers in consultation with an AHB supervisor. “The decision to use Emden as the transshipment point proved to be an advantageous one, as it not only ensured the timely delivery of the cranes but also prevented losses in quality due to longer transport routes via other ports,” Nousch recalls fondly. In his opinion, this successful collaboration shows how important flexibility is in logistics, so optimal solutions can be found, even under difficult conditions. “I’d like to see us succeed with more collaborations of this nature in this country, in order to strengthen Germany as a business location,” the AHB manager says, outlining what he sees as a sensible future scenario.