Delayed recovery – but the worst is behind us

An optimistic project
cargo sector appears to be
putting the troubles of the
economic downturn behind
it – but there are still some
uncertainties to deal with,
from the impact of Japan’s
earthquake disaster earlier
this year to the continued
unrest in the Middle East.
Project and heavylift
operators were hit by
their own recession
later than the rest of the
shipping industry as major
infrastructure projects
and investments were
postponed or cancelled as
a result of the global crisis.
Therefore recovery in the
sector was also delayed,
compared with its bulk
cargo and container shipping
colleagues, but is now on the
up.
“The worst is definitely
behind us,” says Gerhard
Janssen, marketing and sales
director of Hamburg-based
Rickmers-Linie. “There are a
lot of projects on the drawing
board and a lot of plans in the
pipeline.”
However, he said the
uncertainty of the US
economy, which is a big
driver for project cargo,
is having a negative impact
on the market.
“The big ticket investments
are on hold and being
postponed so there is some
uncertainty, something we
do not like to see. We don’t
know when the situation
will change and that has a
big impact on us because
the transpacific particularly
eastbound is such an
important trade,” he adds.
Exports from Japan were
affected by the earthquake
disaster earlier this year,
says Janssen. “While the
Americans are having a good
time selling things to Asia,
it is still relatively quiet on
Asia Pacific eastbound.”
One area that remains
strong for the project cargo
sector is power generation,
for which India and the Far
East will be big drivers.
“The number of people
living in these places is
increasing daily and they all
want more energy – so that’s
good for the project market,”
he says.
He also predicts that oil
and gas exploration, and the
price of fuel at the pump will
inspire more investment.
But the situation in Libya
and unrest in Bahrain
and elsewhere means that
there is still an element of
uncertainty.