Breakbulk News

A plan to tax vehicle carriers $14 per net ton for each US port call will raise consumer costs and reduce the number of ports served, shipping executives warned Monday.

The push and pull of US support for decarbonization efforts puts a question mark over potential project cargo demand.

Global vehicle carriers are set to feel the sting of a growing Chinese-operated ro/ro fleet amid a fight for international car cargoes.

The loss of An-124 heavy-lift air capacity will force a modal shift to ocean or a reduction in cargo sizes to fit into smaller craft, experts say.

Economies of scale are prompting shippers to superscale project cargoes, putting pressure on carriers and forwarders.

Rising Asian vehicle exports have surpassed falling volumes from the west, forcing trade reshuffling and a rise in ballast trips.

While some markets grapple with the lingering effects of trade disputes and fluctuating demand, others are experiencing unprecedented growth driven by green initiatives, robust domestic infrastructure development and the necessities of defense.

In a 10-page notice published Friday, the USTR said it was now proposing a fee of $14 per net ton on foreign-built vehicle carriers, including roll-on/roll-off (ro/ro) vessels, arriving in US waters.

Client relationships have not been harmed by tariffs because shippers and carriers recognize the need for additional and unexpected costs to be passed through the supply chain.

Larger components are pushing handling boundaries with an increasing number of locations too small to accommodate growing cargo sizes.

While traditional energy projects continue to drive immediate demand, long-heralded energy transition initiatives are progressing at a far slower pace amid tariffs and investment uncertainty.

An aging MPV fleet is causing concerns for shippers and forwarders in a market where the fleet has limited capacity to accommodate cargo growth.

A portion of the money will be used for Project 11, which will ultimately allow an additional 1,400 vessels of all types to call the port each year by deepening portions of the channel to accommodate larger ships. 

The US Court of International Trade on Wednesday stated that President Donald Trump’s tariffs exceed his authority.

A squeeze on the talent pipeline for the MPV and heavy-lift sectors means that competition for crew and captains is set to intensify.

Breakbulk and project cargo industry stakeholders must take note of the far-reaching potential ramifications of the recently reintroduced US SHIPS Act, writes Associate Editor Carly Fields.

The Denmark-based carrier has been growing its multipurpose vessel fleet since entering the project cargo sector with the acquisition of Thorco Projects in 2023.

Caterpillar and Deere are counting the sizable costs of tariff-related expenses, even with the announced 90-day tariff pause between the US and China.

Wallenius Wilhelmsen, the world’s largest car carrier operator, said its vessels make between 300 and 350 voyages a year to the US, potentially generating annual voyage fees of about $300 million.

The main heavy-lift components needed for datacenters are cooling infrastructure such as large-scale air conditioners and backup power infrastructure such as batteries, diesel generators and transformers.

A slip in a key sentiment index reveals the MPV sector’s vulnerability to general market uncertainty, but operators remain optimistic that the cargo pipeline is still robust.

With the status of a federal multimodal freight network unclear, heavy haulers are forging ahead with their own push for processes, highway improvements and infrastructure specific to the transport of oversized and overweight loads.

A divergence from the weakening container sector has seen the MPV trade hold steady, although the potential for a breakbulk cargo grab by container lines cannot be discounted.

A swing from renewables to fossil fuels in the US and new opportunities for wind cargoes internationally could overhaul traditional MPV trade lanes over time.

Paper and forest product exports climbed for the first time in more than five years in 2024, but various headwinds will challenge demand in 2025.

The Big Three oil field service companies, key drivers of breakbulk steel industrial project cargo, are bearish in their forecasts for the year as global economic uncertainty eats into profits and project pipelines.

The issue of transit time variability in Latin America has downstream impacts for projects, with forwarders often having to get creative to figure out workarounds due to unforeseen delays.

Rather than shift sourcing, some shippers are negotiating with suppliers to share the costs of increased US import tariffs, an international trade attorney told the Journal of Commerce’s Breakbulk and Project Cargo Conference.

Shippers and service providers say much of the project cargo industry dodged a bullet with the latest US fee proposal targeting Chinese-built ships.

The unknowns surrounding US tariffs and proposed fees on Chinese tonnage are forcing shipowners to take a wait-and-see approach to ordering new vessels.

Speakers at the conference in New Orleans agreed that recent volatility has yet to significantly slow projects or investments in the project cargo sector.

US maritime regulators’ decision to add the multipurpose vessel operator to the controlled-carrier list comes amid a wider US-China trade dispute.

Carriers in the specialized cargo sector are designing contracts that would shift the cost of the US’ possible tax on Chinese tonnage to heavy-lift and project cargo shippers.

Ongoing market uncertainty is expected to upend rates as the breakbulk sector continues to digest tariff ramifications on the specialized sector.

The expansion of the semi-submersible and deck carrier fleet comes amid a forecast rebound in offshore markets, with $46 billion worth of oil and gas EPC contracts anticipated this year and $52 billion in 2026.

Automakers could be hit with compensation claims if they are unable to fulfill seaborne carrier contracts amid an expected downturn in US volumes.

The deal will merge “K” Lines’ traditional logistics activities in ocean and air freight with Kamigumi’s niche business in project cargo logistics.

Firms sourcing from Vietnam, India or Mexico rely heavily on components, raw materials and equipment from China, which will remain an essential link in the production supply chain even if it’s no longer the only one.

Donald Trump’s latest tariffs targeting the auto sector have put key ro/ro ports on alert as they face a “chilling effect” on volumes.

Brent Sadler served in the US Navy for 26 years and now works as a senior research fellow at the Heritage Foundation.