b'26American Journal ofTransportation ajot.comUkraine war cloudsMPV/HL sector face challenges aheadglobal steel demand prospectsBy Ed Bastian, Director of Global Sales for BBC Chartering USA, Special to the AJOTConflict has added a large dose of uncertainty to indus- Bynowanyonewholistenstonage that is now exceeding 20 years try projections. the news knows about the challengesofservice.Financingofnewbuilds within the global supply chain.Lastremains difficult for some owners but yearwesawtheeffectsofpent-uphasimprovedfromthepre-COVID By Peter Buxbaum, AJOT demand as we moved into the postenvironmentwhenitwasverydif-pandemic phase which overwhelmedficulttoinvestintheMPVsector. Several steel companies recentlytionrepresentsabigchangefromthetheglobalcontainerfleetandtheTherealchallengewithnewbuilds reportedhealthyperformancelevels2.7% increase in global steel demandspillover effect it had on the multi- is finding available building slots in for 2021 and through the first quar- seen in 2021, when recovery from thepurpose vessels/heavylift (MPV/HL)shipyards. Most yards prefer to build terof2022.Tociteacoupleofpandemicturnedouttobestrongersector. While the surge has seen somelarger and simpler container and bulk examples, Timken Steel, the Canton,than expected in many regions. Thepullback during 2022 there remainsship designs. Over the next three years Ohio-based manufacturer of bars andexpectation of a continued and stablesome flashing red lights as we movethe global MPV/HL is not expected to tubing, posted a revenue increase ofrecoveryfromthepandemichasinto the summer.see any significant change to the cur-over 28% and a more than doublingbeen shaken by the war in UkraineChinaszerotoleranceCOVIDrent number of vessels now in service.of its earnings per share in the recentandrisinginflation,saidMximopolicyhascausedmajordisruptions quarter. U.S. Steel, the global, Pitts- Vedoya, chairman of the WSA Eco- inseveralmajorChinesecontainerC ArGos Pilloverburgh-headquartered integrated giant,nomics Committee.ports. This is coupled with the upcom- Weexpectsomespillovercargo saw revenues increase by 43% in theing peak season surge for U.S. importsfromcontainercarrierstocontinue first quarter and an earnings-per-shareu krAinew Ari mPACt onG loBAl and an ILWU labor contract expiringthroughout the year and into 2023 but spike of over 280%. s teelP roduCtion at the end of June. These events are allvolumes are not expected to remain at But,toparaphrasetheboilerplateThe magnitude of the wars impactcause for concern for any short- termthe levels seen this past year. However, investments caveat,Pastperformancehas included an immediate and dev- relief on the supply chain pressures.the forecast looks quite positive for the isnotnecessarilyindicativeoffutureastatingeffectonUkraine,amajorWhile rates have had some pullback inMPV/HL owners related to traditional results.ThisyearsawtheRussiansteel and ore producer, consequencesthe last few months there is no guaran- project cargoes such as the windpower, invasion of Ukraine, of course, whichfor Russia, also a metals giant, and atee that this trend will continue. Theseenergy and mining sectors. High com-threwamonkeywrenchintorawlarge impact on the European Union,conditions make it almost impossiblemodity prices and demand are expected materialsavailabilityandpricing,whichismoredependentonthosefor shippers to project future freighttokeepthesesectorsperformingat transportationandlogistics,andthetwo countries than some other globalexpenditureswithoutevenmention- high levels. The Toepfer Multipurpose overalloutlookforglobaleconomicregions. Higher energy and commod- ing the word inflation. Index (TMI) supports the current short recovery. As a result, the World Steelity pricesincluding higher prices forThe MPV/HL sector is expectedsupply of tonnage as daily charter rates Association (WSA) recently forecastraw materials for steel production to continue with a global fleet contrac- on a 12,000 dwt vessel has risen from that steel demand will grow by justandcontinuedsupply-chaindisrup- tion which began prior to the COVID- $8000.00 per day to almost $23,000.00 0.4 percent in 2022. A decline in irontions are all in the offing. A surge in19pandemic.Whiletherehasbeenin the last 12 months alone.ore production may represent an ear- COVIDinfectionsinChinaandthesome moderate orders for newbuildsIfthecurrentsupplychaincrisis lier indicator of future developments. resultingshutdownsinthatcountrythe past few years, these orders will(CHALLENGEScontinued on Thisyears0.4%growthexpecta- (CLOUDScontinued on page 28) primarily be used to replace older ton- page 31)GLOBAL OOG SERVICEEXPORT OVERSIZE SERVICE TO: North AsiaSoutheast AsiaIndia & PakistanNorth Europe The MediterraneanSouth AmericaIMPORT OVERSIZE SERVICE: Flatrack Unloading and Trucking to DestinationWe move the capital goodsthat move the world.Contact us today for your oversize shipment needs!New York | 516-829-0647 | [email protected] | 630-848-0004 | [email protected] Francisco | 415-461-9714 | [email protected]'