Wallem, a prominent player in the shipping industry, has successfully navigated a strategic shift into the project cargo sector. Once primarily focused on containerized cargo, the company has expanded its operations to encompass the complexities of oversized and specialized shipments.

And now, two years after this strategic pivot driven by a combination of market opportunities and a proactive approach to diversifying the business, the company has built a strong foundation for growth.

Commenting on the past two years, Wallem Managing Director, Ship Agency, Dickson Chin said, there have been ups and downs, but these are all part of the journey that has seen Wallem bring people to strategic locations in Asia.

“We are covering the region from Japan and Korea, which are our North Asia offices. We’ve also established a presence in Taiwan. China remains China-centric, and we have a team focused solely on operations within China. In Southeast Asia, we have staff in Singapore, Malaysia, and Thailand strategically placed to align with emerging markets and projected project movements,” Chin said.

He recalls that it all started with the company’s client Höegh Autoliners, seeking commercial representation.

“At that time, in addition to transporting cars, they wanted to handle high and heavy as well as static cargo on MAFIs. That was a great opportunity that opened doors for Wallem, first working with the likes of BBC Chartering and then leading to an exclusive deal with AAL Shipping,” Chin said. Wallem is now an exclusive commercial and port agency representative for AAL in South Korea and Taiwan.

Flexibility in operation

Central to Wallem’s project cargo strategy has been the establishment of a dedicated sales team with a geographic footprint spanning key markets in Asia. By focusing on specific regions and building strong relationships with key carriers, the company has differentiated itself from traditional brokers. Wallem’s niche approach, emphasizing personalized service and tailored solutions, has been instrumental in securing exclusive agreements with major carriers like AAL.

This strategic focus has enabled Wallem to capitalize on the growing demand for project cargo transportation, particularly in emerging markets experiencing rapid infrastructure development.

However, despite working with known partners and known cargo which takes away the complexity, the market is specific in itself. “It has to be the right vessel, the right cargo, and the right trade lane,” Chin said. “Sometimes these are not aligned,” he adds saying that in such cases Wallem’s team can circulate the inquiry among themselves to find the right fit.

Challenges and opportunities in the Asian project cargo market

Wallem’s expansion into the project cargo market has coincided with a period of significant change in the global shipping industry. The ongoing trade tensions between the United States and China, have disrupted traditional supply chains and created new opportunities for logistics providers.

Southeast Asia has emerged as a key region for project cargo, driven by infrastructure development and the relocation of manufacturing facilities. However, the market is also characterized by its complexities. Port infrastructure, regulatory environments, and the availability of suitable vessels vary significantly across countries. Wallem has had to adapt its operations to navigate these challenges and capitalize on emerging opportunities.

The company’s focus on building strong relationships with local partners and stakeholders has been crucial to its success in the region. By understanding the unique dynamics of each market, Wallem has been able to provide tailored solutions to its clients and overcome the obstacles associated with operating in a complex and evolving environment.

“We are pleased with our accomplishments, but we must not become complacent. We need to seize this opportunity, build momentum, and establish trust in Wallem’s ability to act as the eyes and ears in the locations we represent. This will enable us to help clients find the cargo they need,” Chin said.

There is quite an opportunity for the company to be involved in heavy transformer movement, enabling the construction of government structures, pre-fabricated columns and road-bridge in the region.

“These government projects will likely attract a certain level of project cargo, which we see as our main focus. Any additional opportunities that come our way will be an added bonus,” stresses Chin.

However, he noted that Southeast Asia still lags behind more mature markets such as Europe and North America, especially when it comes to regulations. “From health and safety to environmental standards, we are still significantly behind. This means there’s an opportunity for movement and potential advantages due to less stringent regulation compared to other regions. However, we must ensure we choose the right path and avoid associations with unreliable operators. It is essential to conduct thorough due diligence and find reliable local partners to maintain our reputation,” Chin said.

Chin has already set sights on a strategic three-year business plan to grow Wallem’s breakbulk segment into a standalone service provision. “This will be similar to the line of services we provide for containerized cargo and our crew. We aim to build a strong presence in this area over the next three years,” he concluded.