b'THE UNCONTAINEDThe MPP, AAL Dalian, lifts a barge onto its deck.is a shipbuilders strike in South Korea at this writing) couldof Swire Projects, the projects business unit of Swire Shipping mitigate any real decrease. And finding a slot at a shipyard inPte. Ltd. Swire Projects was established in October 2020 to Asia could easily become problematical. This could put pressureprovide specialist shipping services to the energy, renewable on owners to find second-hand new ships to build a fleet. and infrastructure sector. Overall, charter rates for the Handy size sector haveIn July, Swire Projects announced it had entered into a bounced around over the last year. For example, Hudsonlong-term agreement with Rord Braren, a German shipowner, Shipping reported that Handy sized daily charter rates peaked atfor the charter of three handysize multipurpose (MPP) vessels. $37,113 back on October 25th, 2021. By February 7th, 2022, theThis is the second major plunge into the market as in November rate was $17,920 and by July 18th back up to $21,368. 2021 Swire announced the long-term charter of six MPP heavy There is the expectation that Handy rates (and all the otherlift vessels with Nordic Project and Finance. The 28,000 dwt sectors as well) will decline over the next few quarters. Thehandysize MPPs (or African class) were built between 2010 and reasoning is largely that commodity demandparticularly in2011 at Huanghai shipyard, China and will be renamed Pacific China is weakening. Future (FFA) day rate assessments forHonour, Pacific Humility and Pacific Hero, and known as Handy size vessel in 2023 are in the $15,000-$17,000 range the H Class vessels. Swire Projects expects the fleet will grow part of an anticipated softening of the overall shipping market. to 15 vessels by the end of 2022.MPP Boost Obviously, Swire Projects believes that long-term (at least half the earning lifespan of the ships) that the prospects for the But the caveat to this forecast could lie within the MPPMPP sector, especially in the larger sizes, is good. And with a sector. With inflation and rising oil prices, more energy relatedlarge number of wind projects underway around the globe to projects are likely to become viable. In some ways this seemssupplement regular business, they very well could be right.counter intuitive but the price points on alternative energies, deep water oil drilling and shale oil become more project viable with rising energy costs. In short, the higher prices can act as a trigger to more project loads.And there are already some strong signs of investments in the MPP-Handy size sector. For example, take the recent deal 7'