Project cargo

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.

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.

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.

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.

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

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.

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.

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.

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.

Shipowners in the sector view the ambitious SHIPS for America legislation as unrealistic, with the domestic shipbuilding industry under-skilled and lacking the capacity needed to meaningfully contribute to the specialized MPV fleet.

Forwarders say that breakbulk and project cargo shippers are taking a greater interest in alternative fuel options for specialist ships.

EPCs say that tariffs enforced after project costs are finalized not only impact the bottom line but in some cases destroy the viability of a project, hitting volumes in the breakbulk trade.

Airbus’ sudden shutdown of its heavy-lift subsidiary is pushing aviation experts to investigate alternative options to ensure lifts for outsized and project cargo loads are maintained.

A planned US executive order to halt offshore wind turbine activities along the East Coast has the sector in turmoil.

The question is not whether the market will be strong in the first quarter, but rather how high rates will climb, writes analyst Richard Bright.

The shipowner’s decision to expand its MPV fleet is underpinned by expected growth in project cargo volumes and a lack of suitable ships.

The project, expected to drive further investment at Europe’s second-busiest port, is the largest investment in Europe’s chemical industry in more than 20 years.

The challenges for truck demand growth in 2025 vary depending on activity in four major sectors: warehousing, office, data centers and manufacturing, according to Jason Miller.

US energy and climate regulations and policies are expected to shift with the incoming Trump administration, although the magnitude of that shift is still unknown.

Increased orders and decreased recycling in 2024 helped capacity, but the volumes are still not where they need to be to balance the MPV fleet.

Outside investment for project carriers is scarce, primarily because future project cargo flows are so difficult to predict.

The wind energy sector provides a key source of project and breakbulk cargo, but US policy shifts could dampen future activity given that President-elect Donald Trump has been a vocal opponent of offshore wind.

Limited air freight options for specialized cargoes are not expected to ease in the short term.