Breakbulk Market Outlook 2024: Navigating and Seizing Opportunities

[By: AntwerpXL]

The breakbulk sector is encountering a dynamic and challenging environment as new regulations and initiatives to achieve net-zero emissions reshape the landscape. This year's AntwerpXL (AXL) exhibition and conference on 8-10 October promises to help logistics and supply chain professionals navigate this emerging market.

Key speakers at the conference, including Sharanya Kumaramurthy, Market Intelligence Manager at the Energy Industries Council, will delve into how the global drive towards decarbonisation is spurring substantial investment in the ocean and renewable energy sectors. The increasing prevalence of offshore wind projects, hydrogen initiatives and carbon capture technologies is adding complexity to the market while simultaneously presenting significant opportunities.

Energy transition and breakbulk demand
The breakbulk sector plays a crucial role in supporting the energy transition. With the expansion of offshore wind farms and the deployment of hydrogen and carbon capture technologies, the need to transport large, complex equipment across continents is rising fast – and so too will the demand for vessels.

At the same time, the sector faces scrutiny and challenges in adopting sustainable fuels and energy sources. There will be a growing demand for more sustainable transportation methods, including the fuels being used. As reporting on emissions grows significantly, the industry increasingly needs to decarbonise, a key theme in AXL's conference programme. 

Embracing digitalisation and technological solutions
Thought leaders, including Peter Molly, Senior Analyst – Multipurpose Shipping (Associate) at Drewry Maritime Research, will be among the key speakers addressing the slow adoption of technologies such as AI and blockchain due to the industry's complexity and diverse operations. Given its varied sub-categories and niche requirements, the breakbulk sector must carefully evaluate the business case for these technologies. There is no one-size-fits-all solution for project cargo.

External factors, geopolitical & MPV vessel demand dynamics
External factors and geopolitical issues will continue to impact the breakbulk industry. Spot rates in these markets are expected to rise, driven primarily by tight capacity in the container market. The overspill of cargo into the MPV market, while not as extreme as during 2021/22, has prompted shippers to book space well in advance, further pushing up spot rates.

Factors such as capacity repositioning, early peak season in some routes, port congestion in Asia and rerouting around the Cape of Good Hope have contributed to this trend.

At the conference valuable insights into the current state of MPVs (Multipurpose Vessels) in the heavy lift sector will be addressed by expert Susan Oatway, Senior Research Analyst with the Journal of Commerce at S&P Global.

Looking ahead, Oatway anticipates changes towards the end of 2024. The introduction of new container carrier vessels is expected to alter market dynamics. Additionally, the movement of energy cargo, geopolitical uncertainties surrounding the US election and the safety of the Suez Canal will significantly impact the breakbulk sector. These factors will be critical discussion topics at AXL, shaping the industry's strategic decisions.

Fostering opportunities for the next generation
Despite industry progress, there is still a lack of interest in the shipping industry among the younger generation. Murilo Caldana, Project Director for Fox Brasil and Advisory Board member for AXL, emphasise the importance of practical measures to enhance the breakbulk sector's efficiency and competitiveness.

As the breakbulk sector navigates the challenges and opportunities presented by the global push for net-zero emissions, it must adapt to evolving market conditions. The demand for transporting renewable energy components, various external and geopolitical factors and rising spot rates in the MPV market highlight the sector's critical role. By addressing capacity bottlenecks, embracing digital solutions and fostering a forward-looking approach, the breakbulk industry can position itself to thrive amidst these transformative changes.

The AXL conference will provide further insight and strategies, making it an essential event for industry professionals seeking to stay ahead in this rapidly evolving market.

For further details on the AXL 2024 conference programme and to register, please visit the AXL Website Here

To View the Full Conference Program Schedule, Click here