b'30American Journal ofTransportation ajot.comProject shipping rates expected to rise in 2025By Luke King, AJOTLimitedvesselsupplyandhighEl Nino effects could significantly impact P roject demand mean elevated project cargo ratesglobal trade, particularly for general cargo are likely to endure in 2025, accordingand bulk commodities.toDrewry,themaritimeresearchandDemand for grain, fertilizer, steel and c argo consulting firm. marketshowsapositiveother construction materials is expected TheMPVto rise significantly through 2025, which outlookforcharterersandshipowners,will boost the demand for general cargo B i -a nnual itsaid,despitechallengessuchasand project cargo. theongoingglobal geopolitical conflicts and expected tradeNonetheless, tariffs. Both its General Cargo and Projectconflicts and potential policy shifts following Cargo indices are expected to rise in 2025. the US elections pose considerable risks, Lookingahead,Drewrysaidthethe analyst said.Chapman Freeborn delivers forsectorwilllikelyseeonlymutedIn October, Drewry introduced Breakbulk deliveries over the next two years, while aSea Transport Indices for both Project and aerospace client as charter demandsignificant portion of orders scheduledGeneral Cargo vessel segments, replacing for2025willbereplacementtonnage,the previous Multipurpose (MPV) Time shows no sign of slowing hence growth will be marginal. Charter Index.A tight supply of project cargo willDrewry said the new indices highlight Project work for air freight providers is keeping rates up andpersist due to a low orderbook, resultingtherelativestrengthofprojectcargo, aircraft flying. inhighercharterrates.Furthermore,ifwith carriers in this niche vessel segment delays in deliveries increase in 2025, weexperiencingastrongermarketthan may see rates surging next year for projectgeneral cargo since the COVID boom. By Luke King, AJOT cargo, Drewry said in a January briefing. Withfurtherincreasesinproject Scrappingpickedupinthefourthcargo volumes anticipated in the second Aphenomenalaircargomarketinmattersandgroundsupportplannedinquarter of last year, however Drewry notedhalfofthisdecade,weexpectthe 2024 looks set to continue this year at globalDubai, while the UK team were chargedthat 40% of General Cargo vessels are overcurrentdivergenceinmarketdynamics charter specialist Chapman Freeborn. with sourcing the right aircraft capable of25 years old, with a significant number oftocontinue,saidDrFerencPasztor, In an interview withAJOT, Gerhardmeeting the customers deadline.vessels over 30 years old. Many ownersDrewrysheadofportsandspecialized Coetzee, Vice President of CargoIMEA,ChapmanFreebornsAfricateamare delaying demolition since vessels areshipping research. said there were more than enough abundantkept the show on the road at the departureoperating above break-even levels.Tobetterpresentthestatusofthe verticals sustaining volumes. Africa, forairport,coordinatingoperationswithDrewry said demand for project cargodiscreetsub-categorieswithintheoverall example, is booming with mining and oilallstakeholdersandsecuringthevessels will be robust in 2025, particularlymultipurposeshippingsector,wehave andgasmovements,hesaid,whereasapproximately29,000lbor13,000kgon intra-Asia trades, supported by energyintroducedthesenewBreakbulkSea in the Middle East, you have everythingengine inside the aircraft, whilst providingprojects that remain on schedule. However,Transport Indices, which will be updated and from aerospace to defense, as well as oillive, step-by-step updates to the customer. geopolitical risks, potential tariffs, and mildpublished monthly on the Drewry website.and gas, of course. In India, we are seeingCoetzee explained: When aerospace particularly strong manufacturing and liveparts go in for maintenance, they have an animal movements. allocated slot time and, if you miss that HiscommentschimewithWillieslot, you can be waiting a long time for Walsh,IATAsdirectorgeneral,whothe next available slot. So that was oneHWYH2O.COMrecently said air cargo was the standoutof the challenges, meeting the customers performer in 2024, with airlines movingdeadline in in Singapore.more air cargo than ever before. ProfitsFindinganaircraftthatcoulddo anddemandwereup,hesaid,boosteditwasanotherobviouschallenge.Over by ocean shipping disruption, combinedand above that, we had to source a lifting withairspacerestrictionswhichlimitedsling. Due to the engine shape, you cant capacity on some key long-haul routes tojust use a crane directly onto the engine, Asiaall of which helped to keep yieldsas the slings could crush the engine. So, at exceptionally high levels. you need the spreader bar on top.Lookingto2025,IATAanticipatesTofindsomethinglikethatin moderate air cargo growth. EconomicAfrica is not the easiest thing but, thanks fundamentals point to another good year fortocommunicationbetweentheparties, air cargowith oil prices on a downwardandthesupportofourhandlingagent, trajectoryandtradecontinuingtogrow.we managed to secure one. Just 11 days There is no doubt, however, that the airpassed between the contract being agreed cargo industry will be challenged to adaptand the flight taking off.to unfolding geopolitical shifts, including the new Trump administration using tariffsa rabiane XPansionas a policy tool, the association said. In the cargo market, Chapman Freeborn Inresponse,Coetzeesaid:Iechospecializesinthecharterandleaseof thosecomments.Ifwerecomparingaircraft for a wide-ranging customer base, 2024to2023,ourmovementshaveincluding freight forwarders, multinational definitely increased. There was businesscorporations, governments, humanitarian for humanitarian, for manufacturing, foragencies, and a host of industries around oil and gas2024 was a phenomenal yearthe globe.W I T HO N E WAW I T H OUURR N E W ANNDDfor us as a region. IthasrecentlyopenedanofficeinI M P R O V E DGGAATTEEWWAAYYI would say thats likely to continue,Riyadh, Saudi Arabia, where the companyI N C E N T I V E ,TTHHEERREE HHAASSbecause we actually had a very good startsees a rapid transformation in private to the year already, with some good flightsand business aviation. Chapman FreebornN E V E RBBEEEENN AA BB E T T E RE T T E Rperformed.Somecustomersthatweresaid the new office allows the companyT I M ETTOO SSTTAARRTT SS PP PNNHHI I P I I GGonboardedlatelastyeararecontinuingto connect closely with global businessO NTTHHEE GGRREEAATT LL A K E Swith us, and there are some nice projectstravelers, entrepreneurs, and corporations,W I T HHHWWYY HH OO A K E Sthat were involved in. offering tailored solutions that align with2the Kingdoms ambitious Vision 2030.e Xcitingy eare nd Asked about the rise of the online freight Coetzees team has just overseen anplatformsthatarebecomingincreasingly exciting movement to close the year inpopular in other logistics segments, Coetzee our IMEA region, chartering a Boeingsaid the digital innovators are not yet making 747 Freighter to transport a Trent 1000serious in-roads in the cargo aircraft charter aircraft engine from Africa to Singaporemarket.for an aerospace customer. I know there are a lot of platforms Chapman Freeborn said the charter,outtherebut,whenitcomestoour which facilitated engine maintenance inbusiness,itsacompletelydifferent Singapore, allowed it to showcase ourballgame. A platform would most probablyFor mexpertise in supporting our customers bysell one specific aircraft type and wouldntmoorreeiinnffoorrmmaattiioonn::E ail [email protected],cranesnecessarily take in the competitiveness, theemand lifting spreader sourcing. vulnerabilities, and all those other factors Coordination between the companysthat go into a cargo aircraft charter.global offices saw flight set-up, operational( DEMANDcontinued on page 40)'