PROJECT CARGO: Going big - the future of project cargo

The pressure is on Australia’s project cargo and breakbulk sector as shipments get more complicated, clients become more time-conscious and ports put the pressure on costs. Daily Cargo News asked several of the country’s leading specialists about the development of this specialised cargo market.

DCN: How is the overall outlook for breakbulk and project cargo in Australia over the next year or so? Is there genuine uplift or is there more project-specific activity?

Darren Dumbleton, managing director of the Leeward Group (DD): Breakbulk and project cargo into Australia remains steady, but activity tends to come in waves tied to specific infrastructure, energy and resources projects. Current demand appears to be coming from a mix of energy, infrastructure and resources, with renewables and transmission projects becoming more visible alongside traditional mining and construction cargo.

Frank O. Mueller, general manager AAL Shipping Australia (FM): Despite shipping being at the mercy of constantly changing geopolitical machinations across the globe, AAL Shipping (AAL) remains optimistic about the Australian market, where we continue to see strong project-driven demand from renewables, traditional mining and critical minerals. This is underpinned by sustained investment across the energy and industrial sectors and strong trade links with partners in Asian and other markets. Major port and logistics developments, such as the expansion of Lumsden Point at Port Hedland in Western Australia, are increasing capacity and positioning these gateways at the forefront of emerging green industries. These upgrades will support ongoing growth in breakbulk volumes over the coming years.

Allan Hou, sales director for TSL Australia (AH): We are seeing a steady uplift, but it is still very project driven rather than a broad market surge. Large infrastructure and energy-related works are keeping demand healthy, but volumes rise and fall depending on which projects are active at the time.

Geopolitical issues cloud the security of critical minerals and resources
Darren Dumbleton, Leeward Group

DCN: What are the innovations and advancements driving change?

DD: The requirements and needs of the next generation create the innovation to drive change, we are seeing this now in everyday life. It appears in various ways within the shipping and logistics industry, for shipowners it is to meet the still-to-be-determined global standards for greenhouse gas emissions, what will fuel ships of the future? Geopolitical issues cloud the security of critical minerals and resources. Investors calculate sovereign risk; the current global environment has a lot of uncertainty. Australia could utilise its vast wealth of resources and lead innovation in manufacturing of high value low emission products needed for our sovereign risk supply chain.

AH: The biggest changes are practical rather than high tech. Better upfront engineering, more detailed lift and stowage planning and higher expectations around visibility and reporting are making the biggest difference. Customers want fewer surprises and clearer timelines.

DCN: For major projects requiring breakbulk / specialised shipping, is there a trend in terms of what’s driving demand — energy/renewables, resources/mining, infrastructure, defence or a mix? How is that mix changing?

DD: Project activity is always creating demand, mining upgrades, asset purchases and refurbishments. Resource sector commodity demands are driving investments. These are the traditional project requirements and the demand varies based on the sector. We also see continued demand in green energy projects, wind, solar and storage.

FM: AAL views renewable energy projects as the dominant driver of demand in project shipping. Offshore wind activity is accelerating, supported by port enablement projects such as the Victoria Renewable Energy Terminal and Port Kembla’s developing offshore wind hub. Together, these initiatives aim to deliver up to 4GW of power by 2032 — enough to supply approximately three million homes, which will require the shipment of significant volumes of turbine components. Critical minerals and their associated processing infrastructure, particularly in Western Australia, are also contributing to project cargo demand — and mining is an Australian staple. This is complemented by multi-user port developments like those at Port Hedland, further supporting sector growth. Large-scale infrastructure projects, especially urban and bypass developments, are generating increased demand for advanced equipment such as tunnel boring machines and prefabricated structural components like bridge girders.

AH: It is a mix, but infrastructure and energy transition projects are becoming more prominent. Resources and mining remain steady and we are also seeing industrial upgrades and shutdown cargoes. The balance shifts year to year, but infrastructure continues to be a major driver.

DCN: Are cargoes that once moved in containers reverting to breakbulk/multipurpose vessels? If so, why, is it size, weight, reliability or cost?

DD: Certain commodities that are safe to load into containers can shift between breakbulk, ro/ro (Mafi, Static) and container lines. This also occurs for drivable and towable cargo. Supply and demand factors determine the availability of space, service and price between these modes of shipping. Other factors, origin, ultimate destination (landside and port side services), volume, narrow the choice of the mode of shipping.

AH: Yes, in some cases. It usually comes down to size, weight, risk or reliability. If a cargo item is critical to a project, customers often prefer fewer lifts, fewer handovers and a more controlled discharge, even if it costs more.

DCN: Are current vessel types and services fit for purpose for heavy-lift and/or specialised cargo?

DD: The global fleet accommodates for the world’s requirements. The more specialised the cargo the less selection of vessels to move that cargo. Supply and demand determining the outcome for the movement of the cargo. You wouldn’t design a piece of cargo that was too big, too heavy to load on the available specialised world fleet.

FM: AAL’s newly launched 32,000 dwt Super B-Class fleet represents some of the most capable MPVs in the water. With cargo intake exceeding 150,000 FRT, three 350mt heavy lift cranes (with a combined lifting capacity of 700t) and AAL’s exclusive ECO-DECK retractable deck-extension system these vessels offer exceptional versatility and reliability. Two additional vessels will be delivered in 2026, featuring an increased combined lift capacity of 800 tonnes, completing the eight-vessel fleet. With their unique cargo intake and handling capabilities, our vessels are proving their worth across multiple industry sectors. The wider AAL heavy-lift fleet is a regular presence in Australia, consistently proving its superior capabilities, particularly when combined with AAL’s engineering expertise and operational flexibility. As containerised solutions for sensitive BESS cargo are becoming a lot more restrictive, demand is shifting towards MPVs with superior deck strength, lifting capacity and technical handling expertise. In 2025 alone, AAL transported more than 1000 BESS units into Australia, demonstrating scale and specialist capability.

AH: Generally, yes, when the right vessel is available. The challenge is less about capability and more about availability, port access and timing. Modern multipurpose vessels work well, but early planning is essential.

DCN: How reliable are breakbulk/project cargo services into Australia today — especially for time-sensitive projects?

DD: There are options available in the market if the project is well planned with sufficient volumes to induce interest. Semi liner service reliability has improved. The market has welcomed the additional breakbulk semi liner services from Yangtze Maritime, which has increased the number of vessels calling Australia year-on-year. These services offer frequent sailings, stronger connections from Asia and greater flexibility across all Australian ports, with expectations for continued growth. However, utilising regular services for these projects can be challenging due to shifting schedules caused by commercial sensitivities and other factors. A vessel calling to pick up additional induced cargo, or delayed at ports, can cause enormous pressure on time sensitive projects. The customer needs to determine what is their requirement and contract with their preferred carrier under specific terms of the COA to achieve their DIFOT requirements.

FM: AAL operates a well-established monthly Australian liner service across both east and west coasts. We pride ourselves on our ability to redeploy vessels quickly for time-critical cargo, regardless of size and schedule complexity. This includes deploying our tonnage on either regular liner rotations, fixed trade routes or tramp solutions when required. A recent example is the deployment of AAL Dampier on a bespoke tramp-chartering operation from Sattahip, Thailand to Dampier on Australia’s West Coast carrying a major shipment of chemical plant components.

AH: They can be very reliable if planned properly. Most delays come from late decisions around lifting methods, permits, berth windows or landside constraints. Early coordination makes a significant difference.

DCN: Are China and Southeast Asia trade lanes shifting in response to geopolitical, commercial or capacity pressures?

DD: The scale of manufacturing in China has not been replicated into Southeast Asia. The production of low-cost steel is the major requirement for construction and manufacturing, which China still dominates. There is and has been certain manufacturers located in Southeast Asia and parcels do present themselves for specialised commodities as these opportunities develop. Flexibility in routing and service options may become more important than reliance on any single trade lane.

AH: We are not seeing trade disappear, but shippers are being more deliberate about routing and reliability. There is more focus on direct services, contingency planning and working with operators who understand project cargo rather than simply chasing the lowest rate.

DCN: How are cost pressures — fuel, port charges, labour, compliance — affecting specialised shipping services?

DD: These factors affect all shipping. We have a lot of cargo ports around our massive coastline. Geographic location and limited competitive options provide for a high-cost market for shipping companies to do business. When you combine a specialised requirement, without competitive commercial influences you create a high-cost environment. ROI from the customer factors in these costs and still enables them to compete and in some cases dominate global supply and deliver high profitability to shareholders.

FM: Rising costs remain a constant challenge. It is about minimising risk and ensuring reliability for cargo that cannot withstand compromise. Cost cutting can result in shortcuts, which in turn create exposure to delays, damage, penalties and reputational harm. When customers pressure carriers to reduce costs, it can undermine the reliability and safety that project logistics depends upon.

AH: Cost pressure is very real. Fuel, ports, labour and compliance all add up. For project cargo, the biggest cost risks usually come from waiting time or rework, not base freight. Late changes are expensive.

Decarbonisation is increasingly shaping customer decision-making
Frank O. Mueller, AAL

DCN: Is decarbonisation starting to influence vessel choice, port selection, or routing or is capability/reliability still the primary concern?

DD: While decarbonisation is becoming part of the conversation, capability and reliability remain the primary decision making for specialised cargo. The focus on decarbonisation seems to have lost some momentum due to US actions but the industry in general seems committed to reductions. Capability, reliability and budget are still primary factors.

FM: Decarbonisation is increasingly shaping customer decision-making. AAL’s Super B-Class vessels are equipped with methanol-ready engines and advanced optimisation technologies that significantly reduce emissions per tonne lifted. While we remain committed to meeting the needs and expectations of our customers, the safety of our crew and cargo will always be paramount.

AH: It is starting to come up more often, but for most project cargo the priority is still whether it can be done safely, on time and without damage. Sustainability is part of the conversation, but not the main decision driver yet.

DCN: Is there anything here in Australia that needs to change so we can continue to handle complex project cargo efficiently as volumes and expectations grow?

DD: Investment in key infrastructure is always required to ensure our ports and roads can service the demands of industry. We have seen government step away from the ownership of our major port infrastructure. I think government needs to be more involved in the gateways to global trade, ensuring better accountability in price, service and port infrastructure (draft, quay line capability).

AH: Better coordination between ports, road authorities and project teams would help significantly. Earlier logistics involvement would also reduce risk, as logistics is still too often brought in late.

This article appeared in the February | March 2026 edition of DCN Magazine