The special issue of “Ports of Spain” published by Transporte XXI last April dedicates a special article to Project Cargo.
Under the headline “Project Cargo STRONG GROWTH” the article takes the pulse of the state of Project Cargo in the Spanish market.
The publication has included most of the information provided by Erhardt Projects, thus giving our brand a prominent position. The sector media continue to highlight the relevant position that Erhardt Projects is gaining in the current complicated market, as a global logistics integrator in the Project Cargo niche.
We share here the vision of the sector and the evolution of Erhardt Projects in it provided by Igor Muñiz, our General Manager, to the magazine for the elaboration of the final article.
OUR VISION OF PROJECT CARGO IN SPAIN
The Project Cargo Market is optimistic for 2022. Although the supply chain continues to be affected, especially in the main shipping hubs, the general consensus is that special transport rates will stabilize around their current levels.
There are dark clouds such as rising oil prices, inflation and especially the conflict in Ukraine, which adds additional stress to supply chains. A direct consequence may be an increase in maritime traffic between Asia and Europe to the detriment of Russia and a redistribution of the additional capacity available for Europe (except Russia) and the United States.
Notwithstanding the above, the demand for transportation engineering and project forwarding services is increasing, driven by improved conditions in multiple verticals creating opportunities for heavy lift shipping as well as the movement of cargoes stored or deferred in 2021 due to the pandemic.
In addition, the global commitment to environmental sustainability (zero emissions and clean energy) and government stimulus packages for economic recovery in sectors such as energy and infrastructure are leading to an increase in project cargo volumes globally.
Despite this favorable outlook, in 2022 the project cargo market will have to continue to face the problem of capacity in all modes of transport, especially maritime, given that demand continues to outstrip supply, which significantly affects the logistics budgets of companies due to demurrage or the failure to maintain prices and price increases by shipowners. Equipment and personnel shortages and the constant management of customer expectations will also be problems to be faced.
Inflation and supply chain concerns.
Companies have inflation on their minds and see expectations that the increase in freight rates would be transitory receding. The terms “inflation” and “supply chain” have gained positions in the ranking of the main factors to be taken into account for companies’ competitiveness. Moreover, companies are no longer concerned only with costs, but also with how to pass these costs on to their customers, while ensuring that deliveries are made within the deadlines agreed in the sale and purchase agreement.
NEW SERVICES IMPLEMENTED BY ERHARDT PROJECTS IN 2021
Erhardt Projects broke into the global project cargo market in January 2020 with a repositioning as a “niche business” under a “Boutique and Unique” strategy to offer high-value solutions, customized to the needs of each client, at any time and place.
The company has focused its efforts on introducing the best practices in the project cargo sector, incorporating the best professionals in their areas, combining in-depth knowledge of the business with experience in data management and transport engineering, sealing contracts and long-term relationships with customers and suppliers internationally, undertaking the digitization of its operations and launching NETERH, its digital platform to help its customers effectively integrate their data and facilitate their logistics decisions and operations.
The company has gained access to a type of customer with global needs, has increased its business volume and has begun to operate mainly in an international market.
As a result of this work, in March 2022 Erhardt Proyectos will be renamed as Erhardt Projects, an evolution driven by the transformation that the company is undergoing and which better reflects its new reality, that of an integrated, global logistics services company focused on connecting and simplifying its customers’ supply chain.
DEVELOPMENT OF ERHARDT PROJECTS’ ACTIVITY IN 2021
2021 was arguably an unprecedented year in the Company’s history. We dedicated a huge effort to extend our operational capacity, thus capturing the main players in each segment (specifiers, manufacturers, end customers) and a great development in strategic activity sectors for us, such as Oil & Gas, Refineries, Renewables, Energy or Nuclear.
At the same time, we initiated a collaboration model with customers based on a global vision of service and on fostering long-term relationships, in which conversations have focused mainly on the reliability of the supply chain and on how to keep it running and without interruptions that affect the competitiveness and credibility of our customers’ businesses.
Despite the spot market, we were awarded important tenders and the most emblematic project cargo operations, which resulted in significant growth in all areas of the company.
ERHARDT PROJECTS’ BUSINESS EXPECTATIONS FOR 2022
As logistics chains become more complex and affected by risks of all kinds, the need to approach projects under a single vision, integrating physical and digital logistics services, regulatory compliance, risk management and environmental impact mitigation, is growing. In 2022, we will therefore continue to strengthen our global services and expect to continue to grow organically with planned expansion into new markets.
We will accompany our clients in their strategic markets and projects, forging long-term global relationships and being present wherever the decision-making centers are.
We will continue to work to incorporate new customers “worldwide” in the Oil & Gas, Renewables, Energy and Nuclear sectors. Geographically we will be in new markets to cover our clients present in MEATI-APC (Middle East, Africa, Turkey, India and Asia/Pacific).
A key element of our strategy is the digital transformation of the company and the digital adoption by our customers, so we will continue to incorporate new digital solutions to NETERH, our digital logistics services platform.