The Role of Breakbulk Cargo in International Trade

The importance of breakbulk cargo in global shipping

Breakbulk cargo refers to goods transferred from one place to another using specialized or no containers. Due to its irregular size, weight, and shape, breakbulk cargo does not fit into standard shipping containers. The conventional shipping method includes loading and unloading cargo in pieces rather than transporting it as a whole. A wide range of goods, such as machinery, equipment, steel products, liquids, and bags of grains, are examples of breakbulk cargo. Due to their diverse uses, they play a crucial role in international trade and manufacturing. 

 In this blog post, we will understand the role of breakbulk cargo in international trade, the types of cargo, cargo handling, and equipment, and the challenges in breakbulk shipping. 

What is breakbulk cargo?

Standard shipping containers cannot accommodate breakbulk cargo as it is oversized, heavy, and irregularly shaped. The non-containerized nature of cargo means the loading and unloading occur individually at container ports and terminals. You can transport breakbulk cargo through specialized ships, a traditional mode of transportation. This type of goods needs proper handling and equipment to move from one place to another. Breakbulk shipping is essential for shippers who often transport heavy and oversized cargo. 

For example, manufacturing equipment, construction materials, heavy machinery, structural steel, reels and rolls, and steel girders. Goods transported in bags, barrels, and drums fall under the category of breakbulk cargo. Breakbulk cargo and general cargo are the two types of cargo; their size and handling method distinguish them. 

Breakbulk shipping vs. Bulk shipping

Both breakbulk and bulk shipping are different shipping methods, but they are both important in the shipping industry. Both the terms have different meanings and applications in the shipping industry. Let’s have a brief look at the key differences: 

  1. Type of cargo: Under breakbulk shipping, the cargo transported is breakbulk, which means oversized and irregular shape. In bulk shipping, there is a transportation of bulk cargo or, we can say, large quantities of cargo. 
  2. Method of shipping: In breakbulk shipping, specialized cargo handling equipment, cranes, and forklifts move the cargo. In bulk shipping, bulk carriers or tankers transport large quantities of goods. 
  3. Usage: Breakbulk shipping is used to transport goods for project cargo, while in bulk shipping, grains, liquids, and minerals are transported from the port of loading to the port of unloading. 

What are the main types of breakbulk cargo?

There are different types of cargo packaging standards. Let’s have a look at these different types of cargo: 

  1. General cargo: General cargo mainly includes all general types of heavy cargo, such as machinery, equipment, and goods that do not fall under other cargo categories. 
  2. Neobulk cargo: It is mainly the mix of containerized and break bulk cargo. Items like pipes, lumber, and steel products are some neo-bulk cargo. They do not have a containerized nature but loaded in vessels. 
  3. Project cargo: This category includes cargo for larger projects, such as oil and gas equipment, mining equipment, or infrastructure development materials. 
  4. Heavy lift cargo: This type includes goods requiring specialized handling because of their high weight and size, such as construction equipment, generators, and wind turbines.
  5. RORO (Roll-On/Roll-Off) Cargo: This cargo consists of goods driven into and off the vessels, such as cars, trucks, and heavy equipment. 

How to pack breakbulk cargo? 

Breakbulk cargo is hefty and irregular in shape. This uneven structure makes cargo insurance mandatory for shipping. Let’s have a look at how this cargo can be packed so that they will not be harmed: 

  1. Bagged cargo: Under this form of packaging, cargo like coffee, grain, cement, sugar, and fertilizers are included that need to be packaged in bags. These types of cargo are generally loaded and unloaded with specialized machinery such as vacuum lifters and grab cranes to reduce the damage and ensure efficient handling. 
  2. Barrels and drums: Companies package items like lubricants, chemicals, and food products in barrels and drums. Generally, people keep them safe during transit by placing them on pallets or drums. 
  3. Corrugated boxes and crates: Cargo-like machinery, furniture, and electronics are packed in the corrugated boxes and crates. These packing structures can be customized to fit different shapes and sizes of cargo. 
  4. Skids: Skids are similar to pallets but are employed for packaging more oversized cargo. Let’s have a look at how the packing of cargo occurs; 

What are the advantages of using breakbulk cargo shipping? 

Breakbulk cargo offers many advantages over other cargo, making shipping more efficient and profitable. The following are the advantages of breakbulk cargo: 

Cost efficiency: Breakbulk cargo is more cost-efficient than containerized cargo. It does not require extra freight costs, especially for large and heavy cargo. 

Versatility: This type of cargo consists of different types, which makes it possible to transport bulky, irregularly shaped, tall cargo in intermodal transportation

Agility: You can ship breakbulk cargo using various packaging and shipping options, making transportation of this type of cargo flexible. 

Time efficiency: Transporting these types of cargo allows the transportation of goods as ships do not stop at many stops while carrying them, supporting urgent shipping consignments. 

Direct handling: Because these cargoes are containerized, they do not need time to be packed in shipping containers and stacked and then placed in the ship; instead, they just need to be directly placed onto the ship, making the process easier and much faster. 

Customization: Customized vessels can adjust the shape and size of the cargo, making the process more efficient. 

What are the challenges associated with breakbulk cargo shipping? 

There are some challenges while shipping the breakbulk cargo from one place to another due to its oversized nature. Let’s have a look at cargo logistic challenges: 

  1. Labor-intensive: As breakbulk cargo is oversized, irregularly shaped, and non-containerized, it requires labor to place it in the containers. It makes the process of loading and unloading labor-intensive. 
  2. Compliance: To transport these types of cargo, you must fulfill all the legal requirements and adhere to global trade policies, as they are risky. 
  3. Cargo handling and storage: These types of cargo cannot be stored at random places; they need an adequately specified place. Also, handling these types of cargo requires expensive machinery such as cranes and forklifts. 
  4. Enhanced risk: Transporting breakbulk cargo increases the risks as there are higher chances of thefts and fear of damage than containerized cargo. 
  5. Operational inefficiencies: Due to their oversized and distinct shape, handling, transporting, and unloading these types of cargo causes operational inefficiencies. 
  6. Risk of damage: The exposure of breakbulk cargo increases the chances of damage. 

What role do ports play in handling breakbulk cargo?

Ports and terminals are crucial in transporting, loading, unloading, and storing breakbulk cargo. This type of cargo requires machinery and equipment from specialized ports and terminals. The following are the critical roles of ports and terminals in breakbulk cargo: 

  1. Cargo handling: The design of specific ports and terminals is in the way to handle breakbulk cargo.  These ports and terminals are responsible for loading, unloading, and shifting the cargo from one mode of transportation to another. 
  2. Storage and warehousing: The transportation of breakbulk cargo requires different warehouses. Specialized ports have specific, large warehouses to accommodate the oversized cargo. 
  3. Facilities and equipment: These ports offer specialized machinery, facilities, and equipment to facilitate breakbulk cargo transportation and handling. Cargo digitalization facilities, such as advanced tracking systems and cargo terminal technology, help streamline operations more effectively. 
  4. Specialized services: Many services, such as cargo consolidation, packaging, and labeling, support the unique needs of breakbulk cargo.

What is the Role of Breakbulk Cargo in International Trade? 

Breakbulk cargo plays a crucial role in global trade practices. Because of its versatile nature and requirement in different parts of the world. Let’s understand their role in some of the brief  points: 

  1. Economic contribution: Breakbulk shipping allows the transportation of heavy materials, oversized cargo, and project cargo easily from one place to another, helping to construct projects worldwide. The goods included in the breakbulk cargo are mostly the parts of heavy machinery or the heavy machinery itself, facilitating trade between different countries. 
  2. Commodity trade: The transportation of breakbulk cargo enhances the trade of various heavy goods, which benefits the country’s GDP and international trade. Therefore, it strengthens the country’s relationship with different countries. 
  3. Infrastructural development: Breakbulk cargo mainly involves goods that facilitate large machinery production, construct heavy materials, or are themselves machines. They need proper roads and bridges for transportation, which are also essential for infrastructural development. 
  4. Project cargo: These types of cargo are employed for project cargo, which transports large quantities of shipments and materials for infrastructure and construction projects to assigned locations, such as power plants, oil rigs, and wind farms. 
  5. Job creation: Transporting breakbulk cargo is an intensive task, so shipping creates job opportunities in logistics optimization, transportation, and manufacturing. 

Breakbulk cargo plays a crucial role in international trade. It requires specialized ports, terminals, and equipment to transport and shift within the terminals. You must analyze the advantages and disadvantages of breakbulk shipping and apply them to your existing shipping strategies.  To experience the benefits of breakbulk cargo, you must know what they include. How to manage them, and how to overcome the challenges. 

LOTUS Containers, one of the most reliable and leading container suppliers, can accommodate your breakbulk cargo in sturdy and reliable shipping containers. Their container types are ISO-verified and CSC-plated to support your complex cargo easily.