Dearth of multipurpose ships forces breakbulk into boxes

THE GROWING lack of multipurpose
ships calling in Durban is
forcing former breakbulk shippers
into containerisation, whether they
like it or not, according to Arun
Chada, CEO of Allied Chemicals and
Steel.
Oh, it is cheaper by box on most
outgoing trades, he added, as lines
offer attractive freight rates to try
to cover the cost of having to ship
empty boxes back to the main trading
hubs.
Moving steel to the Far East,
Chada notes that breakbulk cargo
is freight-rated at US$110/tonne,
whereas by box it costs US$70/t.
“So the freight rate’s lower,” he
told FTW, “but there are other time
and cost factors in loading steel cargo
into containers.”
The cost of stuffing a container is
about US$15-US$20/t, he reckoned
taking the transport cost up to about
US90/t, and getting very close to the
breakbulk cost.
But there are still other factors to
be taken into account. “Boxes are just
not designed to carry steel products,”
Chada said, “and it takes ages-andages
to stuff a box.”
Not only that, but there is a
limited tonnage that can be fitted
into a box – only 22-t for a 20-foot
(6-metre), and a miserly 26-t in a
40-ft (12-m).
“Not a particularly big load when
you’re talking about high-mass
cargoes like steel,” Chada added.
And if Allied has a shipment of
steel products of a length too big to
fit a box, he has the added complaint
of waiting anything up to twomonths
to catch a breakbulk ship
calling at the port of Durban.
Chada gave the impression that
he still tended to see breakbulk as
his preferred mode, but the lack of
multi-purpose services is a rather
impenetrable barrier.
“We’re basically forced to use
boxes,” he said.