b'14American Journal ofTransportation ajot.com(OUTLOOKcontinuedthroughout the supply chain.from page 8)heat from the IMO and worlds hiPbuiLdinGi MPaCts ongovernments but is now hear- MPv singfromcompanieswithMostcommercialship-theirowngreeninitiativesyardsareexperiencingvery and standards for the future. highordervolumefromthe Thereisnoreasontocontainerandbulkowners, thinkthatsuchpolicies willwhich further delays the con-not become even more strin- struction and delivery of new gent as time moves forward.MPVstothemarket.High This has placed many ownersinflation, increased labor and in a prickly position on futurematerialscostsandhigher fleetrenewalprograms.Ininterest rates are all contribut-otherwords,ifyoudecideing to the cost of newbuilds. to build a conventional MPVSince2015theaveragecost todayisthereariskthatitof the workhorse MPV 12.000 couldbeinnon-compliancedwtwith500m/tgearhas by the time it is delivered orrisen from $19 million to over earlyintheservicelifeof$31 million. Much like what the vessel? Given the currenttheautoindustryhasexpe-environment within the sectorrienced,thesecondhandor itispredictablethatoperat- used vessel market have seen ing expenses will continue toprices skyrocket having more rise resulting in higher freightthan double in the last 8 years. The BBC Arkhangelsk unloading wind blades at the Port of Vassa, Finland.ratesbeingpasseddownThe global HL fleet is not expected to see any significantsition that is underway.newbuilds with the exceptionOntheU.S.maritime ofreplacementtonnageforlabor front, it appears that we vesselsheadingtothescra- will experience no labor dis-pyardorsecondarymarkets.ruptionsontheWestCoast Makingnewinvestmentsinas the ILWU and PMA have theMPVfleetisnolongerjointlystatedthatwhilethe just about financing. The chal- currentlaboragreementhas lenge is finding slots at ship- expired that no strike or labor yards willing to build a MPVslowdowns will take place as vessel over container and bulknegotiations get closer to the vessels.Therearecurrentlyfinishline. ThecurrentILA just no good options to reversecontract covering the US Gulf thiscurrenttrend.ShippersandEastCoastportsruns canexpecttoseecontinuedthroughSeptember2024. capacity shortages in the MPVCurrently, informal talks are sector. While freight volumesalreadyunderwayonanew are forecast to remain strong(OUTLOOKcontinued on due to the global energy tran- page 25)LIBERTY GLOBAL LOGISTICS LLCThe solution to your cargo needs!516-488-8800 LibertyGL.com Rates: [email protected]: [email protected]'