From war zones to weather, Robert Blades of Peters & May reveals how planning and precision safeguard global cargo transport
To begin with, could you share details of your career history and how you came to be in your current role?
After studying global shipping and trade at university, I accepted a job at Peters & May within UK sales. I soon took on sales and marketing for the group. At this point, it became evident that almost 100 percent of our cargo moved were private yachts and motorboats. There was clearly a gap in the market and an opportunity to do more and branch out into the offshore commercial marine market. So, in 2016, after a few years of testing the waters in the commercial market, the decision was made for me to focus 100 percent on developing the commercial sector for the P&M group.
How would you describe the current state of global commercial maritime logistics, and what are the most pressing challenges asset and cargo owners are facing right now?
There is a more uncertain and volatile global operating environment for shipping companies amid politicized trade conflicts, territorial disputes and sanctions disrupting shipping routes and cargo flows. This means the movement of heavy out-of-gauge cargo on multi-purpose vessels (MPVs) has become even more challenging. Operating within the spot charter market, MPVs are particularly affected by the shifting landscape, with new supply/demand dynamics meaning that planning for MPVs is more complex.
There is an increased demand for MPVs compared to 2019/2020, but we are still suffering an element of Covid fallout with the added pressures of the avoidance of the Suez Canal. The prolonging of the Ukraine/Russia conflict and escalations in the Middle East will all continue to have an adverse effect on available tonnage and market stability. Combined with the increased transit times around the Cape of Good Hope, we are seeing less available spot tonnage in the market than in previous years, but not necessarily in every region.
For cargo owners, the new challenges around route planning and MPV availability make it particularly difficult to manage their schedules, budgets and risks with confidence. In some cases, organizations must accept increased transit times because of the instability and traditional routes becoming more complicated.
The demand for multi-purpose and heavy lift geared cargo vessels is rising. What’s driving this trend, and how does it affect cargo planning strategies?
Asia is the in-demand region right now, and there are some big wind energy and oil and gas projects consuming a lot of the available tonnage in the market.
Owners are looking to send their larger vessels back to Asia as soon as possible to meet their contractual demands, and finding space is challenging. Rates are high and typically need a minimum of one to two months’ lead time to secure space.
Europe and the USA are in more of a decline and we are seeing plenty of opportunities from these regions, especially back to Asia.
The geopolitical issues and unpredictability of global trade routes now need to be considered along with the array of logistical and technical considerations when overseeing the transportation of high-value marine assets on MPVs.
Agility, foresight and precision coordination is essential, for example when rapid rerouting is required due to regional conflict or geopolitical risks.
Given the geopolitical instability and increasing unpredictability of trade routes, what key considerations should organizations factor into their logistics and transport planning?
With increased transit times often inevitable, it is important that cargo owners manage their expectations. We recommend working backwards from when the cargo must arrive at their destination, then add reasonable time to secure the most suitable vessel. We also advise cargo owners to start regular discussions with a shipping company much earlier so any problems which arise can be overcome.
Partnering with an experienced maritime logistics specialist, like Peters & May, can mitigate risk for cargo owners. By applying lessons from previous projects, a consultative partner can help to avoid hidden costs caused by delays, insurance hikes and mis-cradled cargo. They will also manage forward planning, identify potential obstacles and adapt to the unexpected quickly when required.
With expertise, cargo owners have optionality – for instance, a specialist can manage cost-saving measures such as combining cargo on a scheduled MPV and will ensure any specialized cradles or other equipment is in place to prevent additional insurance premiums.
A proven logistics partner will also have experience in adapting voyage plans and rapid rerouting due to geopolitical risks and unexpected global events.
Can you walk us through what goes into planning and executing a heavy-lift or out-of-gauge (OOG) cargo transport? What makes these jobs particularly complex or risky?
A successful and seamless operation to efficiently load, move and offload high-value assets in diverse ports globally is a multi-faceted prospect which can only be achieved with the right approach and systems. Experienced decision-making capabilities and foresight are required every step of the way, from securing vessel space, scheduling and route planning, to considering options around the handling process, technical equipment, lifting methods, specialist manpower, port infrastructure, insurance and more.
For the largest cargo, extensive time is required for the technical department to produce method statements, loading securances, sea-fastening calculations, engineering of equipment or cradling – all critical to secure cargo during transportation. The larger and heavier the item the more time it can take to ensure everything is prepared and follows the safety standards. At Peters & May, we offer quotes and indications which allow us to consult and manage expectations during this review stage, even before the client has committed to proceed with a vessel fixture.
We treat every heavy lift move like a custom project, offering full project cargo assessments, engineering and stowage plans, survey and permit management, global route optimization, and customs and regulatory support.
You mentioned the re-routing of vessels around the Cape of Good Hope. How is this impacting charter rates, fuel costs, and scheduling, and how are your clients managing these disruptions?
Taking the longer route from Asia to Europe, especially to the Mediterranean, increases transit time and subsequently vessel running costs. The additional time also removes the vessels from service, causing them to stay away from business for longer.
Clients must be more flexible with dates or even consider the very few vessels willing to transit the Red Sea. There is also an additional war risk insurance consideration on this trade through the Gulf of Aden into the Red Sea.
We can identify potential problems and react quickly to ensure safe and timely delivery of the owner’s items, even when faced with an unpredictable scenario. The threat of Houthi attacks is one issue which is currently causing the need for rapid rerouting.
On a recent project to load and ship Red Jet 4, the high-speed catamaran, from Southampton, UK, to South Korea, on the AAL MV Kobe, the vessel’s planned passage through the Red Sea was ruled out by the shipowner following deteriorating conditions, including renewed Houthi rebel attacks on commercial ships. The team quickly adapted the voyage plan, securing the necessary permits, port arrangements, and vessel support to accommodate the new route back through the Suez Canal and around the Cape of Good Hope, while considering weather variations, fuel resupply, crew rescheduling and increased transit risks over the longer distance.
What role does experience play when transporting specialized cargo like tugs, ferries, or crew transfer vessels? Could you share a recent example where your team’s expertise made a critical difference?
Peters & May has managed a range of interesting and complicated high-value projects, requiring contributions from our dedicated departments for budgeting, technical support, operational control, documentation management, local port handling and loadmaster teams on site. Marine cargo such as monohull boats will need a specialized cradle for support and securing it safely on the vessel’s deck. Not having a suitable cradle can have significant ramifications for insurance.
Challenging shipments in recent years include the safe transportation of two 620-ton Minehunters from Belgium to Pakistan, which involved moving over 1200 tons on heavy lift ship the MV UHL Fame and required 1.35 kilometers of lashing cable, 16 giant slings and reinforced deck platforms.
When shipping two new 22-meter, 320-ton tugboats from Vietnam to the Port of Saint-Malo, France, the Peters & May logistics team worked with MV Fairmaster, fitted with two 1500-ton cranes, with a combined lift capacity of 3000 tons. Bespoke lifting lugs integrated directly into the structure of the vessels allowed them to be hoisted with precision, using a crane system that safely distributed the weight and reduced any potential risk to the tugs during the handling process.
Meanwhile, for some projects, specialized equipment must be in place to prevent additional insurance premiums, as was the case when we moved a cradle from the UK to Namibia for the transportation of a 54-meter Fast Support Vessel YC Bora from Namibia to UAE.
Peters & May has specialist lifting and cradling equipment and a team of loadmasters who oversee all operations at the ports. Our technical team and loadmasters bring deep expertise in complex logistics, with many having served in the British Army’s Royal Logistics Corps. Together, they offer decades of hands-on experience in loading and offloading heavy machinery, oversized equipment, or complex and challenging cargo in multiple ports globally.
Hidden costs, such as insurance hikes or delays from mis-cradled cargo, can significantly impact the bottom line. What proactive steps can companies take to avoid these?
Our expertise and experience when planning operations often results in the avoidance of hidden costs. For example, the most prevalent issue we see is a discrepancy between the supplied Gross Registered Tonnage and Displacement Weight of the cargo. A world class technical team can quickly spot any errors and inconsistencies, which, if unnoticed, could result in a logistical and financial disaster. If a shipper advises the incorrect weight, the wrong type of vessel could be selected with cranes unable to lift the cargo.
Another important reason for securing the support of a qualified and experienced technical team is that, with appetite for risk so low, insurance providers are ensuring project shipments are fully up to the latest safety requirements. In our own shipments, we are seeing a growing number of requirements for surveyor sign-offs, particularly Marine Warranty Surveyors, who will review all technical documentation and report back to the insurers and give a ‘right to sail’ document.
At Peters & May, we don’t hide any costs and will discuss what should be budgeted, based on our 50-plus years in the yacht shipping business.
In this specialist market, it is vital to separate cost from value. Commercial cargo transport of specialist items is, therefore, as much an exercise in risk management as transportation. Time management must focus on preventing delays, and having the right support can effectively give the customer time back, as well as managing expectations.
With tight vessel availability and increasing pressure on port infrastructure, how important is flexibility and adaptability in project planning today?
In this new normal geo-political environment, planning ahead is critical, as well as taking a solutions-based approach. We recognize that for many customers, waiting a month for cargo to be transported is too long, whether that be heavy machinery, oversized equipment, or a complex and challenging cargo. It is important to work backward to ensure deadlines are met.
In addition to meticulous planning, a single, trusted point of contact for customer support is key – one that knows a customer’s objectives and has familiarity with the cargo and its unique challenges. Working with a single partner means that a consultative, not commoditized approach can be taken, so that when problems do occur, solutions can be found through clear communication.
How does Peters & May’s specialist teams and loadmasters help clients navigate this complex environment, particularly when it comes to risk-managed transport solutions?
We are more than happy to navigate the pricing and the entire operation with clients. Some jobs are more complicated, and we must discuss in depth with the client what is required. We have dedicated departments that all contribute to discussions surrounding budgeting, technical support, operational control, documentation management, local port handling, and loading. All are positioned to assist in making the shipments as smooth as possible and safe.
Looking ahead, how do you see the commercial marine logistics sector evolving in the next two-to-three years, and what should companies be doing now to future-proof their operations?
We cannot predict the changes in the global geopolitical and economic environment, which can occur overnight – as we have already seen with Covid, canal closures, new sanctions, and war, for example. The key action for cargo owners to mitigate risk is early preparation to avoid costly changes later on. We are often involved in assisting with the tendering process for shipments over a year in advance or assisting sellers with indications to support their sale/ purchase enquiries.
As we look ahead, it is clear that the ability to pivot when transporting cargo will continue to be essential in the coming years – and this can only be achieved through working with dedicated specialists who want to deliver your cargo safely.
Robert Blades
Robert Blades is Global Commercial Sales Manager at Peters & May. Peters & May is committed to excellence, which is woven into its 50-year legacy. More than logistics, the team relentlessly pursues perfection. Guided by its expert team, the company serves diverse clients, from passionate yacht enthusiasts to global industries.