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14 >> 3 U.S.


Issue 7 2020 - FBJNA


a service o per a ti o n


vessel, or SOV, is sailing straight into the regulatory seas of the wind industry. Louisiana-based


Edison


Chouest Offshore is building a ship designed specifically to serve offshore wind farms, while it will also be the first U.S.-flagged ship designed to comply with the Jones Act. Formally the Merchant


Marine Act of 1920, the law requires goods shipped between


ports must


be transported by vessels U.S.


citizens or permanent


residents build, own and operate. Constructed at ESO’s Florida, Mississippi and Louisiana yards, the ship will incorporate engines from Illinois and steel from North Carolina, the company said.


Other Outlooks


Speaking of steel, Drewry, the global shipping consultancy, reported


in a September


webinar that its dry bulk shipping market outlook sees steel growing 7% to 8% over the next two to three years. This, despite the American


Iron and Steel Institute reporting in September that U.S. imports of total and finished steel are expected to drop nearly 12%, or 24.6 million net tons, and about 20%, or 16.8 million net tons, annualized for 2020. In the meantime, the


Trump Administration in August “deemed it necessary to reduce the remaining quota


for Brazilian semi-


finished steel products for the remainder of 2020 to 60,000 metric tons, down from 350,000, but will maintain existing


quotas for other


steel products,” a U.S. Trade Representative press release said. Those products weren’t specified As for lumber, all you have


to do is drive by your local Home Depot, Lowe’s or lumber yard to see why demand has created a 134% increase in prices, as “Fortune” reported in late August. Meanwhile, wood-production


industry


revenues were expected to plummet 12.5% in 2020, according to an IBISWorld


Wallenius Wilhelmsen Ocean docks drums. Spoon Agency photo, courtesy of WW Ocean.)


At the same time, rates are picking up. In September, Reuters reported the Baltic Dry Index, which tracks rates for Capesize, Panamax and Supramax vessels that carry dry-bulk commodities, rose nearly 13%, its highest mark since the end of July. Dieleman’s


comments


market intelligence.” Along with iron ore and


grain—each projected to expand by approximately 2% next year—the dry bulk market is expected to recover, Drewry said, though a the same time, the global fleet is expected to grow less than 2% in the next five years: “New orders have completely dried up.”


New Bulk Vessels


Don’t tell that to Bahri, which welcomed a new bulk cargo


Wallenius Wilhelmsen Ocean takes health and safety seriously. Notice the masks on dockworkers. (WW Ocean photo.)


The ships were purpose-


built in 2015 and 2016 for the North Atlantic market, Willman says, adding: “We acknowledge that certain commodities cannot be shipped due to high costs and pricing, but ACL’s vast experience and understanding of these markets allow us to handle a


about rising rates came during an “International Breakbulk Journal” webinar in September that drew some 600 participants worldwide. Most notably, though, the six panelists, from the U.S., Europe, Canada and India, spent much of the 100-minute session discussing stranded seafarers. Of the 1.4 million people


who work aboard cargo ships, as many as 400,000 crew have been stuck at sea, some for as long as 18 months, and another 400,000 were unable to board any of the world’s 60,000 cargo vessels, according to reports from the World Economic Forum and an Oct. 2 article in “Sea News” in the U.K. “If the crews of the world


decide to go on strike, so to speak, the world stops turning effectively and everything that we rely on every day for food and shelter and clothing and basic needs effectively will stop,” FedNav’s Pathy told webinar participants. “This


ACL keeps on truckin’ with ro/ro, project cargo and breakbulk. (ACL photo.)


analytics report in September, Other issues pressing on


wood: West Coast wildfires; the 20% U.S. tariffs on most Canadian lumber products; housing starts up more than 22%; and even a potential ban on WeChat, the Chinese communication app the Hardwood


Federation


Newsletter in September called a “valuable source for


carrier, Al-Anood, on Aug. 31. The Saudi Arabian company’s second new ship this year brings to seven Bahri’s total number of bulk cargo carriers, according


to a September


press release. Likewise, Atlantic Container


Line boasts five new vessels. Robert J. Willman, General Manager, RORO & Special Projects, North America, describes the G4 ships as “first of their kind and the largest multipurpose ro-ro/ containerships ever built.”


portion of these cargoes.” As for ACL’s business


overall, he said, “We’re back to where we were pre-COVID and optimistic in our view going forward.” J


a


///BREAKBULK n


Dieleman, President. Cargill Ocean Transportation, said essentially the same thing in September, noting


that the


company operated some 500 vessels in April and is now “back over 700 ships.” In what could be read as yet


another sign of optimism in the sector, German-based SAL Heavy Lift Group announced in October its acquisition of a major stake in Intermarine. SAL’s transaction, whose financial details weren’t disclosed, leverages the U.S.-based carrier’s heavy footprint in the breakbulk, heavy-lift and project cargo market in the Americas, SAL reported.


Rate Uptick


has to be a global priority.” While the panelists agreed


tough seas lie ahead, the breakbulk sector appears prepared for what’s ahead. “The good news is that


things are stable now, most of what bulk carriers carry— essential services and goods that the world needs—so that creates a floor in demand,” he said. “I think you’ll continue to see


stability just based


Windmill blades aboard Chipolbrok’s mv Paderewski. (Chipolbrok photo)


on the necessities of the global supply chain that’s agricultural and industrial.” As Dieleman put it: “I don’t


see anything explosive on the horizon, but we’re clearly in a much better situation than we were four or five months ago.”


GT USA Welcomes


Binderholz GmbH at Canaveral Cargo Terminal


GT USA, the US arm of Gulſtainer, a privately owned independent port


operator


headquartered in the UAE, recently received its first shipment from Binderholz GmbH (Binderholz), a family-owned, leading European timber company with operations in Austria, Germany and Finland, which utilizes cutting edge technology and production methods. Binderholz produces


efficiently on a sustainable basis in accordance with the no-waste principle and recovers 100% of the timber resource. The consignment from the European market leader in solid wood products and innovative construction solutions delivered to the Canaveral Cargo Terminal (CCT) at Port Canaveral, FL. As part of its


services to Binderholz, GT USA is also assisting with storage and inventory of the lumber at the terminal, along with loading it to flatbed trucks for delivery inland. GT USA marked the


inaugural vessel call from Binderholz with a special ceremony,


honoring


Capt. Bogdan Kladnik of the MV ROSSANA with a


commemorative plaque. Speaking on the occasion,


Joe Cruise, Commercial Manager, said: “We are thrilled that Binderholz has entrusted GT USA to assist them with their growing lumber business through Port Canaveral. GT USA is building upon the relationship that its sister company, GT USA Wilmington, has developed with Binderholz over the last year and this vessel call is a strong indication of the trust we have built among our partners and customers. “GT USA’s goal is always to


tailor services to individual client needs through providing creative flexible cargo-handling, terminal and warehousing solutions. We have achieved this goal with Binderholz, by fully customizing a cargo solution to cater to their specific requirements.” The US market, including


the Central Florida region, has witnessed rising demand for lumber in recent years, driving an upsurge in such imports. With plans underway for Binderholz to increase its imports to meet demand, shipments to Port Canaveral are expected to continue on a regular basis.


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