Breakbulk Shipping Halves Container Costs
SIDEBAR TO "EUROPE'S CALL ON CAPACITY"
Broekman Logistics has two breakbulk terminals in Rotterdam – and both are very busy, said business development manager Gijs Vlasman.
“We are seeing, due to congestion in other slightly more southern ports, an increase in requests for different cargoes for Rotterdam. Also, we see a lot of formerly containerized cargo now again being shipped as breakbulk, including wooden/forest products, big bags and steel,” he said. “Fertilizer and other chemicals which were being shipped in 20-foot or 40-foot containers are now moving on ships in massive 4,000- to 10,000-tonne shipments in big bags.”
Vlasman said the comparison Broekman hears is that the cost of shipping by breakbulk from Asia to Netherlands is half that of container services as of mid-February.
“It is a big gap – as long as it is not closed, we expect the demand for breakbulk to continue at a high level,” he said. “We see a big increase of both inbound and outbound cargo. Inbound is really more steel and big bags and wooden products. Outbound is a lot more project cargo and we feel that the backlog of building these mega projects is now being pushed through.”
Broekman is seeing an increase in outbound project cargo from the hinterland, including from Germany, Austria, Switzerland and even France, he said. Project cargoes include large amounts of offshore equipment, power generation equipment such as transformers and generators, LNG-related units, and fabrication and piling related cargoes.
“Projects that were delayed for shipment are now being pushed out as Covid measures are relaxed globally. So we are seeing a bit of catch-up, a push to move out this equipment, either doing direct shipments or moving out of storage area or factory via inland shipping to the port.”
In fact, there is so much concern around securing suitable vessels that project cargo is being brought to the port without the shipping being fixed, Vlasman said. “If a vessel comes in the following week, that’s fine – but if they have to wait for two months, they will do that too, knowing they are not dependent on getting all the permits and organizing the inland river freight as well [because that is already done].”
Storage Options Paramount
With project cargoes being moved to the port area without firm shipping plans, what does that mean for storage? Vlasman said space is made available for Broekman’s priority customers, “and for new clients, we do what we can.”
“We have a lot of indoor warehousing for keeping equipment inside, and also a lot of outdoor space. Most of the equipment being moved is very well packed and protected against the weather, so it can be kept outside.
“With newer clients, we can store cargoes only outside – and they say yes, usually, although with some critical items not. Sensitive cargo like big bags, steel, depending on the properties of the cargo, have to be inside. Of course, there are regulations we have to follow and therefore we accept or decline some enquiries depending on the freight.”
Vlasman said that while it’s difficult to give the precise tipping point, the big increase in breakbulk started mid-2021. The balance has shifted to the point that Broekman has been in discussion with many companies about moving containers from Asia to Europe. In the latest twist, the terminal is now seeing breakbulk vessels arriving with 200 containers on deck for delivery, which then need to be sent out, unpacked, to their next destination.
Photo: Broekman Distriport
