Breakbulk UpFront Issue 2 2022

UpFront Breakbulk Presents a New Opening Section, Focusing on the People and Businesses that Lead This Thriving Industry

By the Numbers: Energy One on One with Kyriacos Panayides, AAL Shipping The Hard Truth About Soft Skills Influencers: Dennis Devlin, Maersk, and Andy Tite, DHL Plus: Movers & Shakers, From the Sidelines, Viewpoint, Events Update, Breakbulk Studios and Deeper Dive

Neart na Gaoithe 3. CREDIT: COLLETT & SONS

WHAT’S INSIDE:

UpFront

BY THE NUMBERS Energy

Countries’ main source of electricity generation (if over 50%) Percentage of global electricity generation 31% Renewable

4% Nuclear

65% Fossil fuels

No data

Fossil fuels Coal, oil and gas

Renewable Hydropower, solar, wind

Source: BP Statistical

Nuclear

Review of Energy 2020

3%

53% Benchmark Brent and WTI crudes both trading north of US$95 a barrel on St Valentine’s Day – more than US$35 higher than the same time last year.

Turbines larger than 8 MW accounted for just 3 percent of global installations between 2010 and 2021 but will be 53 percent by 2030.

Turbines have doubled in size in recent years, from around 3MW in 2010 to 6.5MW today.

The pandemic hit the oil and gas industry hard, with 2014 plans shelved and budgets $780bn retrenched: spending was US$320 billion in 2020 and US$351 billion in 2021, less than half the level of 2014.

99.7 million bpd

2019 $483bn 2020 $320bn

2021 $351bn

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According to the IEA, U.S. oil output is forecast to rise by 1 million bpd on average, to 17.7 million bpd in 2022, as operators respond to higher prices by putting more rigs to work.

IEA raised its global oil demand estimates for 2022, which is expected to grow by 3.3 million bpd to its pre-Covid levels of 99.7 million bpd.

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INFLUENCERS We ask two prominent industry figures to give their viewpoints on a particular topic.

In this issue we ask:

How can the breakbulk and project cargo industry deliver on COP26’s promises?

Dennis Devlin, Senior Director – Special Project Logistics, North America Maersk Inc

“Currently, depending on which statistic you read, maritime transport emits around 940 million tons of CO2 annually and is responsible for about 2.5 percent to 3 percent of global greenhouse gases (GHG).

“I believe the shipping industry in general is committed to delivering on the promises of COP26. The issue of global warming – and the need to reduce GHG – has been considered for a long time within the industry. IMO 2020 is an example, and just the beginning.

“It’s likely that container carriers will lead the way, with other sectors following.”

“It’s likely that container carriers will lead the way, with other sectors following. The big issue is which fuel source (or sources) will be used, or will it be a mix. CMA CGM is already operating six 15,000 20-foot-equivalent-unit ships fueled by liquefied natural gas, while Maersk has ordered 12 newly built ships which will run on methanol. And Maersk has agreements to purchase green e-methanol created by renewable energy. But having many different fuel sources may be limiting the ability of the industry to meet the expectations of COP26.

How does this impact the heavy-lift and breakbulk sector?

The heavy-lift and breakbulk sector is much smaller, and therefore will not likely lead in the drive to determine which alternative fuel(s) are selected. Moreover, despite the current favorable rate environment, carriers in the heavy-lift and breakbulk sector are still facing the consequences of several years of a very weak market. Shipyards are far busier building other ships, notably container ships. Thus, industry experts are not predicting much, if any, short-term increase to the breakbulk fleet, which will restrict the sector’s ability to meet decarbonization goals.

Andy Tite,

Vice President, Global Business Development and Commercial Director Industrial Projects, DHL “COP26 started with an ambitious goal of gaining commitment for global greenhouse gas emissions (GHG) reductions to limit global heating to 1.5°C as well as to have net-zero emissions by 2050. This necessitates reduction of global emissions by 45 percent by 2030. What this means for the logistics, shipping industry and breakbulk sector specifically is we must reduce our emissions now and drastically cut our consumption of fossil fuels to the point of complete phaseout in the relatively near future.

There have been major strides in the shipping industry in recent years with IMO2020, which ended up being far less disruptive than some had envisaged, and with continued investment in more efficient and cleaner vessels, which was mainly been driven by simple economics – they are cheaper to run! An aging fleet also coincided with market lows through to 2020 which resulted in a natural attrition of expensive and thirsty vessels.

Since this time the market has turned full circle and as we see record-high freight rates and considerable profits for the carriers. We must encourage those carriers to future proof their existence with investment while they have the means to do so. This investment must not be based on just new tonnage, but with a focus on sustainable fuel sources.

Within DHL we have committed to Net Zero 2050 and are already leading the way through the establishment of sustainable transportation options in road freight, air freight and FCL/LCL services. But we can do more. The missing piece of the puzzle is the needed investment from the carriers in the breakbulk market, only then can we truly deliver net zero projects without the need for carbon offsetting. Our clients will also help “steer the ship” with their future demands and based on clearly established criteria of needed carbon neutral transport solutions.

Not so long ago, health and safety was a considerable focus for the breakbulk sector. It required significant change in culture and working practice and the market reacted very positively. Sustainability and carbon neutral transportation is the next call to action; those that prepare for this today will be the ones who are first to benefit tomorrow.”

While there may be some exceptions, overall, the manner in which the heavy-lift and breakbulk sector as a whole addresses decarbonization will likely be led by how the container and bulk sectors do so.” www.breakbulk.com

BREAKBULK MAGAZINE 7

UpFront

ONE TO ONE Kyriacos Panayides, AAL Shipping Carrier’s Prospects Gives CEO Much to Smile About

By Gary Burrows Two years ago, AAL Shipping (AAL) CEO Kyriacos Panayides stood among a gathering of AAL leadership, customers and journalists late into the multipurpose shipping line’s reception at the Summersalt Beach Club on a soft, breezy night in Dubai.

Throughout the gathering, at the end of the first day of Breakbulk Middle East 2020 – the last such event held for nearly two years – Panayides did his best to entertain guests, despite a spate of overwhelming challenges facing his company and the market. He and his team had been navigating AAL through a decade-long record trough for MPV shipping – facing a potential pandemic and still looking for a leg up against dire global economic conditions, bulk commodity collapse, low cargo volumes and over capacity.

fellow ship operators, with only few in our segment rushing to the shipyards after a few good years.”

Capacity, Compliance

However, the current industry climate brings mounting urgency to rebuild an aging MPV fleet, with more than half of all vessels passing 15 years old.

While the fortunes over the past 18 months have helped reduce financing issues, it’s still an entirely different environment for fleet renewal than in the past.

“Nowadays, we do not see fresh capital from outside the industry pouring in as in the previous cycle from 2006 to 2010,” Panayides said. “Then, banks were offering up to 90-100 percent loan-to-value and that attracted non-shipping investors looking for quick returns. They ultimately got their fingers burnt when the market turned downwards from oversupply of new vessels entering the market.”

“The current markets, current drivers, current negotiations, current service profiles, and the size of our ships are suitable for our service mode today. In two or three years’ time when something changes, we’ll adjust.”

Two years later, at 2022 Breakbulk Middle East in Dubai, Panayides was smiling like the cat that ate the canary.

“We’d suffered a lot for 10 years,” he admitted during a sitdown in the Shippers Lounge during the 2022 Breakbulk conference in Dubai.

Shipping fortunes had changed dramatically as the globe struggled to revive from the initial onset of the pandemic and supply chain congestion pushing container fixtures to MPVs, along with burgeoning wind business. Since July 2020, when carriers existed hand to mouth, charter rates had skyrocketed 243 percent to February 2022, according to the Toepfer Transport Multipurpose Index.

“Firstly, we have reached a point where we’re building our reserves, which secures long-term financial stability and supports our ambitious long-term business plan,” Panayides said. “Secondly, we are happy to see patience amongst our 8 BREAKBULK MAGAZINE www.breakbulk.com

He sees that as a key lesson learnt from the past, “Investment in the MPV sector today is being driven by owneroperators, people who know the sector and its limits. We know how much we can invest into the shipyards and won’t place a huge number of orders that could lead to oversupply, which was the reason our sector suffered for more than 10 years.”

Whilst financing may be on better footing, alternative fuels and its global sourcing, as well as shipyard capacity are key issues slowing fleet renewal beyond the next few years.

“Due to EEXI (Energy Efficiency Design Index for existing ships) and other related regulations on decarbonization coming in existence, operators with ageing fleets may have to scrap their older tonnage and thus supply might tighten further.”

The IMO amended MARPOL Annex VI, introducing regulations 23 and 25 - the Efficiency Existing Ship Index (EEXI) and regulation 28 - the requirement to reduce Operational Carbon Intensity through the Carbon Intensity Indicator (CII).

MARCH-APRIL 2022

Customers and especially larger publicly listed and multinational companies have their own emissions targets and are demanding cleaner, modern ships. “In recent years we have seen shippers become very selective with their counterparts and setting more qualifying parameters on their vendors’ approval processes, especially the majors in those industries we serve. Fleet renewal now depends on the needs of the operators and their own business models, in the absence of outside liquidity.” Panayides added.

technological advances and cargo demands, Panayides said.

AAL offers global coverage with a combination of tramp and scheduled liner services. Its liner routes, where it’s A-Class and S-Class vessels sit, currently comprise three monthly liner services: • Asia – East Coast Australia (AUEC Service).

• North and Southeast Asia – West Coast Australia Service (AUWC Service).

• Europe – Middle East/India – Asia Monthly Liner Service.

MPV carriers are at a disadvantage in terms of newbuilding MPVs, due to container ship orders which shipyards prefer due to their simpler, less-complex design, Panayides said.

“MPVs shipyards have increased their pricing, resulting in several operators pulling back from ordering as they’ve found prices simply too high.”

The rest of the fleet is deployed on its core trade lanes connecting five continents with regular sailings, though maintaining flexibility for tailoring voyages across major project cargo ports.

Timing is Everything

Nevertheless, AAL Shipping added eight MPVs to its fleet in 2021, purchased from the secondhand market and has now ordered six additional IMO CO2 -compliant vessels to be in the water by 2024. These vessels will be 32,000 dwt with 350-tonne heavylift cranes for combined 700-tonne maximum lift. Each vessel will be equipped with dual engines and have the flexibility to switch to other biofuels or methanol. The ships will bring AAL’s owned fleet to 728,600 dwt – 82 percent of its operating fleet which will also increase to a total of 880,200 dwt, excluding additional third-party vessels serving AAL on short-term charter.

Would growing regional markets, such as Africa and South America someday develop into liner trades?

“Today, those are our secondary markets and we’re already there serving certain projects. However, if a project or contract comes along that demands greater regularity, then we will build more frequency and this might well turn into a liner service,” he answered.

“This is precisely how we have built liner operations in the past.”

2022 Outlook

Panayides waves off commenting on market forecasts beyond 2022 but sees plenty of positives in the short term.

“We still see significant demand for container transport, but I think that will begin to stabilize. On the back of rising oil prices, oil and gas projects look to be on the horizon A rendering of the AAL Dubai, which is one of AAL Shipping has an advantage and that is a very positive sign – at six IMO CO2 -compliant, 32,000 dwt vessels with the shipyard, CSSC Haungpu least for as long as geopolitical relations that AAL Shipping has ordered.

Wenchong Shipyard in China. As part remain stable. Wind energy volumes CREDIT: AAL SHIPPING of Schoeller Holdings, a major investment are also forecasted to continue growing company in ship-owning and other shippingwith the push to zero emissions and that will related sectors, AAL was able to leverage its own drive renewable energy projects forward. Furthermore, newbuildings with additional container ship orders for steel is set to be a significant base cargo, as infrastructure Schoeller’s other holdings. developments worldwide pick up momentum, after a long hiatus during Covid. And, for as long as container freight rates Panayides said the six new vessels, along with its eight other remain high, then the MPV share of the dry cargo business 25,800 to 33,000 dwt ships purchased on the secondwill also increase,” he said. handmarket, fit the carrier’s short- to mid-term portfolio demands, while serving its long-term vision.

Beyond that, “it’s hard to tell and no one can accurately predict. … What might be at risk when the eventual correction “We currently have a fleet that is relatively modern with comes to the container market is older MPV tonnage. We the last generation of newbuilding activity completed only forecast that those vessels might well experience the most 7 years ago. We are not under pressure to place further jarring impact,” he added. investments and have the luxury to wait and assess market fundamentals.

For now, though, Panayides speaks as though a weight has been lifted, and it’s reflected company wide. “What Meanwhile AAL “has flexibility. We are testing the market, is really pleasing to see is just how positive our teams are various drivers into decarbonization and new engines – all of and enjoying a much healthier market landscape. Despite which combined should give us a clearer roadmap forward.” this euphoria, they are all still extremely busy keeping our customer cargoes moving, beset with operational Models and Markets challenges from congested terminals, scheduling delays, AAL’s new vessels position the carrier well in the current low productivity at ports and land logistics issues due to the market and perfectly fit its longer-term service models, ongoing pandemic. We certainly cannot afford to take our as they have been carefully designed to cater for new eye off the ball for one moment.” www.breakbulk.com

BREAKBULK MAGAZINE 9

UpFront

CAREER PATH The Hard Truths About Soft Skills ‘Family’ a Common Theme Among Panelists

Among the hard realities for women – and men – who seek to advance professionally in the breakbulk and project cargo industry, core skills, or “soft skills” are building blocks of success.

That was the message of the Women in Breakbulk breakfast, networking and panel held the second day of Breakbulk Middle East in Dubai, led

by Leslie Meredith, marketing and media director of Breakbulk Events & Media.

“Many people believe leaders are born, but I believe we can all learn to be better leaders,” said Meredith, who is program director for Breakbulk’s Women in Breakbulk.

Meredith invited the session’s six panelists to relate about a soft skill that was of particular importance to them.

LEADERSHIP. H.E. Eng. Hessa Al Malek, executive advisor to the minister, United Arab Emirates Ministry of Energy & Infrastructuwre, said “leadership is not a skill; it’s a combination of a number of skills.”

Hessa Al Malek UAE Ministry of Energy & Infrastructure

In particular, Al Malek said women have a “human sense,” particularly when it comes to managing a family, with each child’s different skills and needs, and those management skills can be applied to the workplace.

“To be a leader doesn’t mean you’re on the top and you just give instruction. No! You are one of the team.

So if you know what you want and you know your teams capabilities, strengths and weaknesses

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of each one, if you work on supporting their weakness, they will deliver the best of them,” she said.

CREATIVITY. “Family” was mentioned again by Eng. Nawal Yousef Albanaee, director of the Future Energy Department, United Arab Emirates Ministry of Energy & Infrastructure.As the deputy of the happiness and wellbeing team and a member of the ministry’s innovation team, she said, “creativ- Nawal Yousef ity and innovation Albanaee are the DNA of any organization.” UAE Ministry of Energy & Infrastructure

She encourages creative thinking in her team by presenting “with a challenge and let them work it out. I support them, but I let them do the work by themselves,” but to “work as one team, work as a family.”

RESOURCEFULNESS. In the recent times of chaos and crisis, “resourcefulness is the key to success in industry and in life,” said Sanaz Taransari, managing director, Seaport UAE.

Sanaz Taransari Seaport UAE

The pandemic has “forced us to work in unprecedented ways to come up with new ways and thinking,” she said. This has led to relying on different contacts and industry sources to get work done despite

lockdowns, lack of crew changes and proper sourcing. Further, empathy and motivation is required to support staff and keep them engaged.

For crews stuck aboard vessels, Taransari worked to provide additional resources including technologies so seamen could be in contact with family, and providing offspring with allowances to help them “You must come up with solutions with what limited resources you may have. But if you work hard, you’re resilient and resourceful, you will always find a way to succeed.”

ADAPTABILITY. “Adaptability is at the heart of human nature, and we have to use it to survive, to move forward and to progress,” said Bengi Yuceer, regional head of marine claims – TMEA, Howden Insurance Brokers. Since Covid, “we’ve had to change how we think, how we do business and how we communicate with colleagues and how we did all of these things Bengi Yuceer to succeed and TMEA, Howden move forward.”

Insurance Brokers To illustrate her topic, though, Yuceer noted a time before Covid when, though she changed job, country, industry and sector, and found herself in more a support role whereas she had been in a core position.

“I had to adapt very quickly because I initially did feel sidelined and undervalued,” she admitted. She adapted by “understanding the business she was in, the bigger picture and to understand the pressure points and where her skills could prove useful in the new and different environment.”

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Women in Breakbulk participants, from left, Leslie Meredith, Breakbulk Events & Media, moderator; Sue Donoghue, DHL Global Forwarding; Katherine Yakunchenkova, Al Safina Security; Eng. Nawal Yousef Alhanaee, The UAE Ministry of Energy and Infrastructure; Sanaz Taransari, Seaport UAE; and Bengi Yuceer, Howden Insurance Brokers. Not pictured, H.E. Eng. Hessa Almalek, The UAE Ministry of Energy and Infrastructure.

CRITICAL THINKING. “When we’re talking about critical thinking, we’re talking about gathering a lot of evidence, documentation, information, analyze things in order to set Katherine up your final Yakunchenkova conclusion,” Al Safina Security said Katherine Yakunchenkova, managing director Al Safina Security. “At the end it has to be rational, staff supported and unbiased by all means.”

The most important thing, she added, is that critical thinking requires impersonalized, unbiased views in setting conclusion.

“You have to move away your emotions and personal opinions and traditions of doing things … Be creative and come up a solution no one else would have thought.”

TEAMWORK. “Without the team, I am nothing,” said Sue Donoghue, CEO Arab Cluster, managing director – Saudi Arabia, DHL Global Forwarding. “One person who would fight daily challenges, to try and deliver excellent customer strategy, to drive business growth but without a team behind me, with me, ahead of me then it doesn’t work.”

Sue Donoghue DHL Global Forwarding, Saudi Arabia

Like other speakers, Donoghue referenced a business team as a “family.”

“We have to consider all of the teams that we have around us.

Because when we empower the teams and we listen to other people’s perspectives, when we listen to the experts in the team, we built a group of people, we build a family that all bring something special to the table,” she said.

“We have to consider all of the teams that we have around us.

Because when we empower the teams and we listen to other people’s perspectives, when we listen to the experts in the team, we built a group of people, we build a family that all bring something special to the table” – Sue Donoghue, DHL Global Forwarding, Saudi Arabia www.breakbulk.com

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UpFront

MOVERS AND SHAKERS Highlighting Recent Industry Hires and Promotions bremenports

Ronald Schwarze has been promoted to head of marketing at bremenports GmbH & Co. KG. Schwarze previously served as marketing manager at bremenports since Ronald December 2002.

Schwarze

Combi Lift

German-based heavy-lift and project logistics provider Combi Lift has expanded its presence in the Americas by opening a new office in Houston, led by Breakbulk Veteran Grant Wattman, president and managing director of Combi Lift Americas LLC. Wattman, a member of the Breakbulk Media Grant Wattman Advisory Board, was president and CEO of Agility Project Logistics from February 2012 to April 2020, and has since been president and founder of Jade Management Group.

Klaus Hilpert has joined Combi Lift as managing director and chairman of the board of directors.

Hilpert has more than four decades of experience in the project logistics industry.

Simon Wasum

deugro also announced eight senior appointments and presidents of business regions: Tobias M. Schultz, president North America; Mark Hollenstein, president South and Central America; Mirko Menge, president western and southern Europe, India and Africa; Matias Setala, president Scandinavia and Eastern Europe; Sergey Godlevskiy, president Russia and CIS; Sven F. Hergemoeller, president Southeast Asia and Oceania; and Dirk Wittkowski, president greater China and Pakistan.

DHL Global Forwarding

deugro

deugro has established a new management structure with the five-person management team of Thomas C. Press, chairman and co-CEO; Klaus Strahmann, co-CEO; Simon Wasum, chief operating officer; Tim Killen, chief sales officer; and Felix Schneider, chief financial officer.

12 BREAKBULK MAGAZINE www.breakbulk.com

Lars Ingmann has joined the company as vice president, global head of renewables. He reports to Martyn Lawns, regional vice president industrial projects Europe. Jacob Jensen, has been name regional head of renewables.

Brian Evans, a 15-year logistics veteran, joins DHL Industrial Projects as regional head of renewables – North America.

In addition, Colin Hindley joined DHL Industrial Projects as global sector head, international energy companies, after more than 16 years with Agility, most recently as CEO Iraq/regional head of EPC Middle East.

Fluor Corp.

Ryan Foley

Klaus Hilpert

Tim Killen

Andy Tite is promoted to vice president, global business development and commercial director industrial projects.

He will also lead a team of global sector heads that includes mining, oil and energy, interAndy Tite national energy companies, government and defense and EPC.

Jake Swanson

Ryan Foley, CEO of Industrial Projects at DHL Global Forwarding, a division of Deutsche Post., announced a series of promotions and talent acquisitions.

Jake Swanson has been promoted to regional vice president – Americas, vacating his dual role as global sector head EPCs, and global head, sector strategy.

Trevor Anderson has been promoted to general manager of Fluor Corp., the U.S.-based engineering, procurement and construction firm. Anderson, based in Johannesburg, South Africa, has been with Fluor for four years.

Horizon Air Freight

Thomas Damsgaard has started a new position as director board of directors at global logistics provider Horizon Air Freight. He remains president/operating advisor at Vimar Global Consulting, which focuses on the maritime value chain.

Thomas Damsgaard

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FROM THE SIDELINES Here we present some notable voices from the industry, including participants at Breakbulk Middle East in Dubai, Feb. 1-2.

Rafic Mecattaf, CEO, DSV Middle East & North Africa On integration of Agility acquisition: “The integration process is going extremely well, we’re on track. I wouldn’t say we’re almost done, but by the middle of the year we will be …”

Kristian Lund Knudsen, global head of special cargo solutions, Maersk

On sustainable fuels for newbuildings:

On whether carriers will cut out forwarders:

“We are not talking about fossil fuels anymore. We talk about sustainable energy, we talk about ammonia, we talk about hydrogen, we talk about methanol. So whatever we do in shipping, we need to make sure the environment is well-protected.”

Cyril Varghese, head of global logistics, Fluor On shipper-carrier relations: “The relationships between stakeholders is not a one-way street.

I cannot expect to treat the shipping lines like slaves when the rates are down and when the choices are plenty.”

Ibrahim Behairy, managing director for Middle East & Africa, Winterthur Gas and Diesel

“This is a narrative that has been very popular in the media and it creates a lot of attention and a lot of heat and I think quite frankly it has been blown out of proportion”

Khalid Al Shehhi, manager of marine projects at the Abu Dhabi National Oil Co.

Susan Oatway, senior analyst, multipurpose and breakbulk shipping, Drewry

On the shift to digitalization:

On MPV operators’ response to higher rates:

“As an operator and ship owner, we always try to improve our efficiency and reduce our operating costs. Covid-19 showed us all this in one year.”

“I do think that they have taken every opportunity possible.

More newbuildings would have been good … but there are strong reasons why that did not happen – not the least because it is a cautious sector with little outside investment.”

VIEWPOINT Follow Breakbulk Events Media on LinkedIn to participate in our surveys. This issue’s question: During 2022

11%

When Do You Think Ocean Freight Rates Will Stabilize?

During 2023

Beyond 2024

54%

35%

From 114 Respondents

“Like gold & property, the price trend of ocean freight will never again see a downward slope, the graph will only climb upward. Thanks to the perfect pretext of pandemic which was the spark to ignite this inflation.”

– Renfeer Razack, head of operations, Marine Allianz

www.breakbulk.com

BREAKBULK MAGAZINE 13

UpFront

EVENT UPDATE Breakbulk Europe Advisory Board Leads the Way 2022 Event Agenda Addresses Key Industry Themes

The all-new Breakbulk Europe Advisory Board met for the first time Nov. 22, and again on Jan. 25, as members discussed the themes that will shape content for Breakbulk Europe, to be held May 17-19 at the Rotterdam Ahoy.

optimize their processes digitally. It is also a subject to share best practice and to understand how the supply chain can operate more efficiently for all.

Excitement is building through these kick-off meetings with an overview of the 2022 event, held at new venue, and will include additions such as Discovery Zone, a future on the show floor showcasing innovations across water, land and air. “We also shared more detail on our all-new Global Shipper Network, which replaces the Breakbulk Masters, our program for cargo owners across the supply chain,” said Victoria Pope, head of content for Breakbulk and CWIEME.

Digitalization and Innovation will be Digitalization themes presented widely across the show. The addition of the Discovery Zone will enable us to expand our content on these themes. The key question for the industry: How to embed technology and how companies can work together to ensure systems speak to each other and contribute to smoother processes and better efficiency for all.

Breakbulk’s content team has conducted in-depth research with industry professionals to delve deeper into key industry challenges, trends and opportunities to help shape the content at Breakbulk Europe. Content shared these themes with the Advisory Board to gain feedback

Sustainability

Freight Rates and Capacity

Freight rates and capacity was by far the biggest talking point, and with predictions that the situation will not ease before the end of the year, Freight Rates it will be a key topic of conversation at Breakand Capacity bulk Europe. Cargo owners are having severe issues in the supply chain with getting components to where they need to be, and with the situation expected to continue, it is important to discuss how to be smarter with supply chains to limit disruption. A big question: What really is “normal” when it comes to rates and capacity.

Digitalization

Thomas Sender Mehl, director, global sales and operations planning and supply chain excellence at KK Wind Solutions, said digitalization is an area the industry, particularly cargo owners, are finding challenging and where Breakbulk Europe could provide specialist content, assisting companies and industry professionals with how to

Ekaterina Andreeva Volga-Dnepr Airlines

Sustainability is driving many initiatives across the supply chain. With net zero targets in place, sustainability metrics are now included in tenders, and society is becoming more aware and conscious of the impact on the environment.

The Advisory Board welcomed coverage of topics such as CO2 monitoring and tracking, future fuels for ships, making the entire supply chain more sustainable, and moving Sustainability towards greener forms of energy.

Across the

Supply Chain Christel Pullens, president of WISTA Netherlands, suggested aligning sustainability content with the European Union’s green plan, Fit for 55, as this directly impacts companies working across the supply chain and the targets that they need to meet. Through Fit for 55 the EU aims to reduce greenhouse gas emissions by 55 percent by 2030 and will drive the movement towards a more carbon-neutral supply chain in Europe.

Post-Covid, Talent Gap

Already a cause for concern, the growing talent gap was further widened by Covid, and the situation has become more critical than ever. Such a specialized industry must rely on

Simon Brett

Ruediger Fromm

Tim Killen

Port of Tyne

Siemens Energy Global

deugro group

14 BREAKBULK MAGAZINE www.breakbulk.com

Danny Levenswaard Port of Rotterdam

Long-term Impact of Covid

Susan Oatway Drewry

MARCH-APRIL 2022

specialized talent, which has suffered through furloughs, mergers and acquisitions and redundancies, all linked to Covid.

Breakbulk content will look to do its part, hosting conversations at Breakbulk Europe to see how to make the industry more attractive to those starting a career. The Breakbulk Education Day informs and inspires students enrolled in local universities is one way Breakbulk supports and assists with this challenge.

Sue Terpilowski, press officer for WISTA International and director, Image Line, believes students should be addressed at a much earlier age to have more of an impact. Breakbulk feels passionately about doing our part to ensure the future sustainability of the industry. We’re looking into how we can engage with school-level students who may not be aware this industry exists, Talent Gap to inspire them to pursue a career in the sector. The Advisory Board fully supports this and there were already examples of how they are engaging with schools that we can support. Watch this space!

Tim Killen, executive vice president of deugro, added that professional career development for those already in the industry to explore new opportunities and to help retain the best talent. Focusing on upskilling, professional development, progression routes and careers ensure the industry doesn’t lose the talent it already. Breakbulk Europe will host professional development workshops covering a range of topics to provide an opportunity for attendees to upskill as well as build and develop their networks.

first events business to sign the Maritime UK Diversity in Maritime Conference and Events Panel Pledge. This pledge has been established to ensure that maritime events are inclusive, and conferences have diverse panels.

Breakbulk Europe is committed to ensuring diversity and inclusion across the entirety of the event. With the support of our Advisory Board and working with key groups such as WISTA and Maritime UK, we will showcase our diverse talent across our industry.

With these key themes and building blocks forming the basis of Breakbulk Europe’s content, we rely on our Advisory Board to bring it to life.

Our full conference agenda is live at https://europe.breakbulk.com/Business-Programme, and check the website and Breakbulk Europe’s newsletter for further updates.

Other Key Content Themes

IMO Regulations

Renewables/ Offshore Wind

Energy Transition

Project Outlook

CO2 Monitoring and Tracking

Macro Focus

Danny Levenswaard, director breakbulk, Port of Rotterdam emphasized the importance of covering macro level trends such as trade agreements and their impact on breakbulk cargo flows economic outlooks. This will definitely be featured in the agenda, as this has traditionally been among Breakbulk Europe’s most attended sessions.

Future Fuels

Diversity and Inclusion is a critically important theme that will also be addressed in the agenda and at wider Breakbulk Europe event. Breakbulk Europe was recently the

Christel Pullens WISTA Netherlands

Thomas Sender Mehl KK Wind Solutions

Supply of Vessels – MPV Fleet Update

Marko Stampehl

Sue Terpilowski

Carsten Wendt

BBC Chartering

WISTA International

Wallenius Wilhelmsen

www.breakbulk.com

BREAKBULK MAGAZINE 15

UpFront

BREAKBULK STUDIOS Recent video highlights from Breakbulk Studios, focusing on interviews and overviews from the recent Breakbulk Middle East at the Dubai World Trade Centre in Dubai, UAE.

DHL: Understanding the Complexity of Shipping Rates Amadou Diallo, CEO of DHL Global Forwarding Middle East & Africa, discussed one of this year’s big topics: capacities and rates. Diallo argued that high freight rates can no longer be blamed on just supply and demand; instead hosts of more complex issues are driving costs. With little industry consensus on when a return to ‘normal’ is likely, he asks: Are higher rates really such a bad thing? https://www.youtube.com/ watch?v=f6uk9YT5o3o

Jaber: What True Digitalization Means for the Industry The breakbulk industry has not always been the quickest to embrace the shift from manual to digital, said Mohammad Jaber, COO at DSV Abu Dhabi and MD for Air and Sea. Companies need to seek out their own solutions to ensure they are at the forefront of the digital revolution. He also offered some invaluable advice on trusting the next generation of project logistics professionals. https://www.youtube.com/ watch?v=AcNrmLiKtRk&t=226s

DSV’s Rafic Mecattaf Sees Huge Potential in Renewables Rafic Mecattaf, CEO of DSV Middle East & North Africa, was enthusiastic about DSV’s progress in assimilating Agility by mid-2022. He described the acquisition, creating the world’s third-largest logistics and freight firm, as “very complimentary. The best skill set in the region, blue-chip customer portfolio and we’re definitely going to continue on that trajectory.” https://www.youtube.com/ watch?v=pjl_tiOlkWc&t=8s

Fluor’s Cyril Varghese Explains Rates and Capacities Issue Cyril Varghese, global logistics director at Fluor, who moderated the conference’s “Managing Rates and Capacities” panel event, explained how rising demand driven by a resurgence in energy and mining projects would continue putting pressure on already-stretched markets. Some stability in freight rates was likely this year, he said, although rates would remain high. https://www.youtube.com/ watch?v=NBIdlNQ1VRc&t=45s

Breakbulk Middle East 2022 Day 1 Recap A whirlwind start to Breakbulk Middle East 2022, the region’s largest event for the breakbulk and project logistics industry. Day 1 played host to some brilliant sessions, with expert panels tackling key topics from capacities and recruitment to project financing and digitalization. https://www.youtube.com/ watch?v=7P-jUHC0kCo

Breakbulk Middle East 2022 Day 2 Recap Day 2 of Breakbulk Middle East 2022 focused on the future, with panel sessions covering women in breakbulk, seafarer welfare, a review of pipeline projects and West Africa. The conference also hosted a government round table and a session on empowering the next generation of breakbulk professionals. https://www.youtube.com/ watch?v=QKC4XdE6VVo

For more videos on a wide range of topics, visit Breakbulk365 https://breakbulk.com/page/breakbulk365

16 BREAKBULK MAGAZINE www.breakbulk.com

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DEEPER DIVE – WIND A snapshot of recent reports, white payers, analyses and news sources focusing on key industry sectors Turbine Installation Vessel Demand 80 70 60 50 40

12+ MW 9-12 MW 6-9

MW

4-6

MW

0-4

MW

20 10 2010

“The auction will allow offshore wind developers to bid on six lease areas – the most areas ever offered in a single auction – as described in BOEM’s Final Sale Notice. Leases offered in this sale could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes. As offshore wind technology continues to advance, these areas may have the potential to produce even more clean energy.”

Read more at: https://tinyurl.com/jxua6sv9

Turbine Makers Face Challenges

30

0

the first offshore wind energy auction under the Biden-Harris Administration.

2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Source: Rystad Energy OffshoreWindCube, Rystad Energy research and analysis

Larger Wind Turbines Face Vessel Bottlenecks

“Offshore wind turbines are growing in size as technology advances and demand for renewable energy soars but installing them could be a headache for operators as demand will outpace the supply of capable vessels by 2024,” said energy research firm Rystad Energy.

Read more at: https://tinyurl.com/ym7af7sv

wpd Pushes Romania Offshore Development

“At the end of July 2021, wpd offshore has become the first company in Romania to officially apply for the development of offshore wind energy projects in the Black Sea. The Black Sea 1 (500 megawatts) and Black Sea 2 (about 1.4 gigawatts) projects, for which separate project companies have already been established, are to be developed and built off the Black Sea coast.”

Read more at: https://tinyurl.com/2s4477mp

“The global business environment for wind energy remains volatile in the short term and prosperous in the long term.

As communicated at the release of our results for the third quarter of 2021, we expect the near future and at least 2022 to be heavily impacted by cost inflation, while the emergence of an energy crisis caused by geopolitics and fossil fuel volatility has also resulted in dramatic increases in energy prices,” said wind turbine manufacturer Vestas.

Read more at: https://tinyurl.com/jrxj3euy

Norway Kicks-off Offshore Wind Development

“Norway will launch its first tender for bottom-fixed offshore wind turbines in the southern North Sea later this year, planning to develop 1.5 gigawatt of electricity that will supply the Norwegian mainland,” Reuters reported.

“The first turbines could be completed in the second half of this decade, Prime Minister Jonas Gahr Stoere said in a news conference, adding that government subsidies may be needed to get the project going.

“A planned second development phase, in the same area of the southern North Sea, will come later, have the same capacity and may supply power to the European continent, Stoere said.”

Read more at: https://tinyurl.com/sjfhmw9k

Philippines Largest Offshore Project Secured

“The Blue Circle and its partner CleanTech Global Renewables Inc. have signed their first wind energy service contract for an offshore wind project in the Philippines with the 1.2 GW project in Bulalacao, Oriental Mindoro …

Norway

“The Blue Circle and CleanTech have succeeded in securing the exclusivity for the Bulalacao site development through a service contract in a competitive context. The planned 100 turbines with a unit capacity of 12 MW for a total of 1200 MW will constitute the largest offshore wind project of the country” Read more at: https://tinyurl.com/2cvzvky2

Utsira Nord Denmark

Energy Auction for New York Bight

“Secretary of the Interior Deb Haaland announced that BOEM will hold a wind energy auction on Feb. 23, 2022, for more than 480,000 acres in the New York Bight. This will be

UK

Soerlige Nordsjoe II CREDIT: REUTERS, OPENSTREETMAP

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BREAKBULK MAGAZINE 17