MULTIPURPOSE vessel (MPV) operators are seeing a return of so-called 'spillover' cargo due to elevated container rates, reports New York's Journal of Commerce.
Shipping delays and port congestion, have MPV operators saying they are fielding inquiries from shippers who normally use liner services, but are now looking for other options.
Still, interest remains well below the level seen during the peak of the pandemic market two years ago, say shipping executives.
Most of the recent interest from shippers is for mode-malleable cargo - freight that can be easily switched between breakbulk and container modes.
This mainly involves cargoes that can be shipped either in containers or breakbulk - bagged cargo, forestry products, steel,' said Arthur English, CEO of Bergen, Norway-headquartered G2 Ocean. Typical bagged cargoes include rice, plastic pellets, coffee, minerals and other commodities.
For some container shippers, however, unreliable liner schedules are playing a role in the shift toward MPVs, according to Marc Willim, global head of chartering at L Shipping.
'If a shipper is moving three containers per day and they are delayed by one, two or maybe three weeks, inventory starts to stack up and it makes sense to ship them by multipurpose vessels,' Mr Willim said.
This particularly applies to specialized containers that are either out-of-gauge or classed as dangerous goods, with container carriers more limited in the amount they can take onboard,' he added. 'In instances such as these, multipurpose carriers may then be the best option to maintain their 'just in time' productivity.'
SeaNews Turkey
Shipping delays and port congestion, have MPV operators saying they are fielding inquiries from shippers who normally use liner services, but are now looking for other options.
Still, interest remains well below the level seen during the peak of the pandemic market two years ago, say shipping executives.
Most of the recent interest from shippers is for mode-malleable cargo - freight that can be easily switched between breakbulk and container modes.
This mainly involves cargoes that can be shipped either in containers or breakbulk - bagged cargo, forestry products, steel,' said Arthur English, CEO of Bergen, Norway-headquartered G2 Ocean. Typical bagged cargoes include rice, plastic pellets, coffee, minerals and other commodities.
For some container shippers, however, unreliable liner schedules are playing a role in the shift toward MPVs, according to Marc Willim, global head of chartering at L Shipping.
'If a shipper is moving three containers per day and they are delayed by one, two or maybe three weeks, inventory starts to stack up and it makes sense to ship them by multipurpose vessels,' Mr Willim said.
This particularly applies to specialized containers that are either out-of-gauge or classed as dangerous goods, with container carriers more limited in the amount they can take onboard,' he added. 'In instances such as these, multipurpose carriers may then be the best option to maintain their 'just in time' productivity.'
SeaNews Turkey
