Breakbulk News

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.

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.

Oil and gas project developers pin hopes on legislative support and tax breaks for supporting carbon capture buildouts in the US, but the future of those projects could be at a crossroads under the Trump administration.

MPV industry experts call for exemptions to US port taxes for China-built ships, stressing the lack of alternatives for specialist cargo carriage and the unfair burden on responsibility on the sector.

A deal between the Northwest Seaport Alliance and the Native American Puyallup Tribe will result in a 22-acre, two-berth terminal completed by the end of the decade.

Freight rate declines coupled with ship supply and cargo demand worries are rippling through the MPV sector.

Engineering, procurement and construction companies are in a tailspin about the possible withdrawal of suitable ships for project cargoes if the US government’s port call proposal linked to Chinese tonnage is implemented.

The arrival of the first vehicle imports in five years has sparked renewed interest in the country’s auto shipment potential.

Fluor, KBR, TechnipFMC and Worley are predicting moderate to strong growth in project orders this year, buoyed by oil and gas work.

Manufacturers are offering diverse views on the outlook for the wind sector, with onshore faring better than offshore in the US and blade accidents upending momentum.

Sustainable financing will help the Oslo-listed operator hit net-zero goals, but it brings risks with higher capex costs to cover operations of its ro/ro fleet.

While the breakbulk sector failed to capitalize on the forward loading of steel to get in front of US import tariffs, it now has bigger concerns with US proposals to penalize Chinese-made MPVs.

Robust automobile, steel and wind power equipment movements in 2024 put US ports on a strong footing, but tariffs and a shift in government priorities could temper progress this year.

Continued strong vehicle trade will more than offset a first-half dip in high and heavy equipment movements, while executives say the impact from possible US tariffs on vehicle imports from Mexico and Canada would be minimal.

Donald Trump said he planned to announce that the US would impose a 25% tariff on all imports of steel and aluminum, both of which are key cargo types for the breakbulk sector.

The threat of US tariffs, inflation, rising government borrowing and slower interest rate cuts are undermining cargo confidence in the US and beyond, according to benchmark indicators.

Investment in wind power and air lubrication gives multipurpose vessel operators an extra shot at compliance with the FuelEU emissions rules.

Unstructured data, security concerns and value questions are holding back the progression of technology in the breakbulk industry.