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DOMINATE AND EXPAND: THIS STRATEGY PROPELS RO/RO LEADING PORTS OF BALTIMORE AND SAVANNAH/BRUNSWICK

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DOMINATE AND EXPAND: THIS STRATEGY PROPELS RO/RO LEADING PORTS OF BALTIMORE AND SAVANNAH/BRUNSWICK

Being the Nos. 1 & 2 busiest roll-on/roll-off (Ro/Ro) ports in the nation isn’t quite good enough for the ports of Baltimore and Savannah/Brunswick. At least the Maryland Port Authority and Georgia Ports Authority are not resting on their laurels, anyway. These East Coast ports are doing their best to maintain their top-two rankings through initiatives such as investments in expansion and training programs for warehouse workers that are designed to increase efficiency and reduce damage and accidents in the loading/unloading process.

These growth initiatives are helping to not just cement the ports’ statuses in the Ro/Ro world—Baltimore has been the No. 1 Ro/Ro port in the United States for eight years running—but it’s making them even more desirable and competitive places for automobile manufacturers to do business.

Port of Baltimore

The Port of Baltimore continues to expand and thrive despite an uncertain trade climate. Larry Johnson, sales manager of Trade Development, Automotive, credits his port’s success to efforts to maintain positive relationships with their automotive industry partners, keeping those industry partners loyal.

One such partner, Volkswagen Group of America, recently began a partnership with Port of Baltimore to begin importing vehicles through the Tradeport Atlantic in Sparrows Point, which could provide an increase of 120,000 vehicles annually—and an additional 100 jobs.

The port also benefits from its proximity to the Midwest—it’s the closest seaport to Middle America—and with top notch services like efficient rail, cargo can get to destinations faster than from any other port on the East Coast. Baltimore’s strategic location is within two-thirds of the U.S. with just an overnight drive.

The Baltimore port’s training initiatives have helped cultivate the lowest damage rates in the industry. The port has also pioneered a program, Ro/Ro Rodeo, which is an intensive class to educate manufacturers in the highly specialized processes required to handle each specific type of vehicle that is processed through the port. Ro/Ro Rodeo has even developed a program for the highly specialized processing of farm and other industrial equipment

With almost 200 acres of pavement at the Dundalk Marine Terminal alone, the Port of Baltimore consistently breaks its own records for Ro/Ro processes, often increasing its volume as frequently as month to month, and their investments in expansion and training will likely keep that volume increasing for years to come.

“The Port of Baltimore is the No. 1 auto port in the nation and continues to break cargo records every month,” says Maryland Governor Larry Hogan in the September/October 2019 edition of Helen Delich Bentley Port of Baltimore Magazine. “Our administration is committed to furthering this growth and strongly supports our great port and its thousands of hardworking men and women handling the millions of tons of cargo coming in throughout the year.”

Ports of Savannah and Brunswick, Georgia

The Georgia Ports Authority (GPA) is the No. 2 Ro/Ro port in the United States. Its Port of Savannah increased volume almost 250,000 TEUs in 2019, according to the GPA. This growth of 5.6 percent over the previous year came at a time when auto sales are actually dropping–a true testament to the hard work of the port employees at Savannah and Brunswick.

A banner year for the ports, the Ocean Terminal recently won contracts with both Volvo and General Motors. The Colonel’s Island Terminal in Brunswick is a Ro/Ro-only port that is already home to International Auto Processing, Wallenius Wilhelmsen Solutions and Mercedes Benz USA.

The GPA properties are undergoing an expansion that will eventually create an additional 150,000 spaces for automobiles, bumping their processing capacity from 900,000 annually to 1.5 million. There are currently three dedicated Ro/Ro berths that process cargo via nine different steamship lines.

“Both Savannah and Brunswick are outperforming the market, with Garden City container trade growing at a rate three times faster than the U.S. total, and Brunswick Ro/Ro units increasing despite a drop in U.S. vehicle sales in 2019,” says GPA Board Chairman Will McKnight in a Jan. 28 statement.

Growth Despite Uncertainty

Strategic locations, ample space and work ethics that include faster cargo processing, in-depth training and safety records that far eclipse many competing ports are just a few reasons that these ports are leading the pack in Ro/Ro. With the onset of trade tariffs, such as those imposed on China, and reports that the United States’ manufacturing industry has experienced slowed growth recently, these ports have nevertheless managed to increase growth consistently. Growth when economic uncertainly looms large is a true testament to the power of excellent service and sound investment.

If these and other Ro/Ro ports can continue to capitalize on trends such as exporting goods to other countries competing for business with China, they will have learned that they can not just maintain their positions in the Ro/Ro processing rankings, but keep growing.

Everyone’s Breaking Into Breakbulk

Time was breakbulk, project cargo and multipurpose/heavylift were their own niche sector on the global shipping spectrum, but many of today’s carriers are taking it all, from MPV/HL to roll-on/roll-off (ro-ro) to go along with their regular old vanilla container hauling (not to suggest said containers are filled with vanilla, although they could be).

The “Big Three” carriers—MSC, CMA-CGM and Maersk—continue competing with one another by each entering the comparatively lucrative breakbulk and project cargo market, which has also drawn such ro/ro specialists as Grimaldi, NYK and MOL.

For its “global out-of-gauge and breakbulk services,” MSC advertises “first class project cargo management, no matter whether you have a requirement for heavy lift cargo, or for oversized cargo which cannot fit inside a standard container.” MSC can point to more than 40 years of experience in shipping oversized freight and their “expert project cargo logistics team” that can help with the planning and execution of special loadings.

Not to be outdone, the CMA CGM website states, “Our dedicated experts will take pride in providing you with our Special Cargo services and will find with you reliable shipping solutions, whether you’re shipping sensitive materials or heavy and bulky equipment but also will take extra care of Aid and Humanitarian cargo that often exceeds the size of standard containers.”

Size matters, of course, as CMA CGM can rely on the expertise of its 755 agencies in more than 160 countries all around the world as well as an extensive network of ports, terminal operators and suppliers. “Our teams can deliver a seamless door-to-door service and integrated one-stop-shop solutions for your Special Cargo anywhere in the world,” the promo boasts.

COSCO Shipping also relies on a large fleet and experience in extra-heavy hauling. This was demonstrated in February, when the sound section of the Maersk Honam was successfully loaded aboard COSCO’s heavy-lift vessel Xin Guang Hua on open waters outside Dubai. The 228.5-meter long item arrived in March at Hyundai Heavy Industries in South Korea.

Maersk has been accepting breakbulk as well, with company officials pointing to the opportunity to be able to carry an entire project as opposed to select components that fit neatly in traditional containers. The carrier does assess breakbulk or project cargo on a case by case, depending on available space and vessels, the length and width of the cargo and the terminals to be called.

“We’ll use special gear, extra labor, and oversee operations,” Karen Hicks, Maersk’s global client manager, told JOC.com in March. “There are no cut and dried solutions.” Her company is searching for more solutions with the creation of special project cargo teams and online booking tools, however.

Wallenius Wilhelmsen Ocean (WW Ocean) is occupying the space in between containers and lift-on/lift-off (lo/lo) or geared MPV/HL, stowing cargo under the deck of ro-ro ships where less packaging and handling is required. WW Ocean officials say they see growth potential in being able to handle a single piece of breakbulk cargo, multiple pieces or pieces and materials for large, multimillion-dollar projects handled over several voyages.

Customers should be warned that pricing can be tricky. As opposed to a standard container rate, carriers have to factor in trade lanes, weight and volume, cargo type, and any special equipment needed, such as mobile loading platforms (mafis) or jack-up trailers. Surcharges for bunkers, port costs, and other assessorial charges must also be factored in. And then there are the costs for securing different types of cargo along the trade routes.

The variety of elements to consider has not swayed Höegh Autoliners away from offering transportation for all types of breakbulk cargo, as the carrier handles close to 6 million cubic meters of high and heavy and breakbulk cargoes annually worldwide. For breakbulk, project and other “out-of-gauge” cargo, Höegh relies on modern and specialized rolltrailers, which are specially designed for smooth and safe transportation of heavy and/or long breakbulk cargo.

G2 Ocean is only two years old, so most would consider the carrier new to the breakbulk game. But company officials want you to know that they actually have 50 years of experience in the sector thanks to G2 Ocean being a joint venture of two of the world’s leading breakbulk and bulk-shipping companies: Gearbulk and Grieg Star.

“We operate the largest fleet of open hatch vessels worldwide,” proclaims the G2 Ocean website. “In addition we operate a substantial fleet of conventional bulk carriers. With 130 vessels and 13 offices on six continents, we can serve all our customer’s needs. Our vessels are tailor-made for breakbulk cargoes like forestry products, steel and project cargoes. Advanced systems make shipping with us easy. The passion and expertise of our people put our customers at ease. This is the basis for reliable, efficient, flexible, high-quality and innovative services.”

However, you do not have to be a large, global conglomerate carrier concern to specialize in breakbulk and project cargo. On the other end of the roster is Florida Barge Corp. (FBC), whose 150- to 400-foot long tubs were engineered and constructed to transport heavy and concentrated cargo loads.

Routinely operating in the waters of the U.S. East Coast, the Gulf Coast, Mexico, the Caribbean and Central and South America, FBC offers project cargo, heavy-lift, and module transportation services—at rates that are less or at least competitive with the big boys.

Founder Brendan Moran boasts more than 15 years of experience in the marine transportation and project cargo industry. “Whether your needs include loading and transport of bridge beams or dredge related equipment,” states Moran’s online bio, “FBC will provide all aspects of the movement from inception to completion.”