Clean energy and infrastructure drive heavy lift growth in ASEAN region

There is strong project cargo demand in Southeast Asia, driven by energy, infrastructure and industrial projects. Several headwinds are affecting the sector but optimism is high. This time last year, HLPFI discussed the role of the ‘China plus one’ business model in Southeast Asia’s project cargo activity. While this trend continues, Southeast Asia still faces tough competition from China.

Marc Willim, global head of chartering at AAL Shipping, highlighted China’s strong inland and port infrastructure as key driver behind its industrial growth. “China has multiple, well-equipped and highly capable ports along its coastline that facilitate the regular movement of heavy and oversized cargoes,” he explained. By comparison, some ports in Southeast Asia lack adequate infrastructure to handle out-of-gauge (OOG) and heavy lift cargo.

“We therefore have to assess each enquiry on its merit, to determine whether the volumes support the integration into our liner services,” said Willim.

Geopolitical developments have had a dramatic impact on trade over the past year. South China Sea tensions and Red Sea disruptions have impacted route planning, insurance costs and vessel availability, while the intermittent closure of the Suez Canal and extreme weather events have further driven up voyage times from Asia.