Break Bulk: Everything You Need to Know About the Operation

Break bulk is an English term that can be loosely translated as “fractionated cargo.” In maritime transportation, it refers to goods that are shipped loose or in smaller pieces.
Today, you will gain a deep understanding of what break bulk is, how operations involving fractional cargo work, the advantages and disadvantages of this type of dispatch, and the types of ships and ports that handle break bulk. You will also learn about the essential precautions required to maintain the integrity of the cargo. Keep reading!

What is Break Bulk?

Break bulk is a concept closely tied to the storage and movement of cargo at ports. The key point is that, despite being widely used by professionals in the field, it is common to encounter questions about its meaning.

“Break bulk” comes from the term “breaking bulk.” It is defined as a method of transport and cargo handling for items that cannot be packed into containers or conventional-sized cargo boxes.
Thus, it is a special type of transport for goods with unique dimensions or needs. Products that can be transported via break bulk include cellulose, steel, fertilizers, and coal.

Also known as “project cargo,” break bulk is a differentiated transportation method for volumes with special dimensions. This modality caters to goods that cannot be transported conventionally and require special planning and handling.

After all, products with unique sizes require prior planning that takes into account technical and physical conditions to ensure proper handling. In other words, break bulk is a process that involves study and planning that prioritize the analysis of the best routes — as the cargo cannot be transported on just any ship — and practices that ensure the integrity of the goods.

Whether transporting high-value goods or not, when it comes to international logistics, movement must meet quality standards. Naturally, smaller items are easier to handle, while larger ones require special attention.

Break bulk, therefore, applies to exactly those products with such characteristics. This modality allows for close monitoring of the entire movement process, minimizing any setbacks that could negatively impact costs and the integrity of the products.

Difference Between Bulk and Break Bulk

Although there is some confusion, we cannot use “bulk” and “break bulk” as synonyms. While break bulk represents a form of transport and movement for goods that cannot be packaged in containers or conventional cargo boxes, bulk refers to loose goods transported without packaging.

Advantages and Disadvantages of Fractional Cargo

Depending on the type of goods being transported, break bulk is a necessity. If the product cannot be moved in a container, for example, an alternative will need to be used. However, like other transportation methods, there are advantages and disadvantages to using this mechanism.
One disadvantage is that the cargo is loose inside the ship, leading to higher risks during transport. On the other hand, when you store goods in a container, there is less exposure, and thus, less risk of damaging the products. Despite this increased “danger,” there are numerous advantages, and one of them is precisely the cost — which can even offset potential setbacks.
During transport imbalances in the market, break bulk cargo is cheaper, although it is more exposed to damage. We have freight that is charged by tonnage or cubic meter, and the exporter does not incur pre-storage, staging, new storage, or container freight costs, to name a few examples.
It’s also important to highlight that this situation of pre- and post-costs for containerization is not very visible to the broader market. That’s because each exporter and importer knows their costs and manages their finances accordingly.
Nevertheless, in general, freight will always be cheaper for break bulk cargo. Additionally, costs are linked to the balance between supply and demand for ships operating in the break bulk segment.
In other words, rates depend greatly on this balance between supply and demand for ships in the segment. Because of imbalance in container shipping, break bulk freight is currently much cheaper, although still more expensive than before.
By the way, there has also been an increase in break bulk freight costs of 100% to 200% since the beginning of the pandemic. Despite all these factors, including the increased risk of damage, the economic aspect remains one of the biggest advantages of break bulk, which is considered a more economically viable option compared to container transport.
Within this context, beyond the economic factor, the benefits of this transportation method include:

• The ability to move large-dimension products
• Accessibility in most ports worldwide
• Reduced time in the goods dispatch process

Ships Equipped for Break Bulk Cargo Transport

Not all ships are equipped to transport break bulk cargo. Additionally, the type of product being transported can determine the type of ship that needs to be used. In break bulk, several relevant nautical concepts are taken into consideration, such as:

• Handysize — bulk carriers with an average gross tonnage ranging from 15,000 to 35,000 tons. The handysize class is divided into the subcategories of supramax, handymax, and handy.

• Deadweight — a measure used to define the difference between the total weight of the cargo supported by the vessel and the weight required for it to function as expected (including the cargo and other items carried on board).

For example, steel can be transported on handysize ships, which are vessels of up to 35,000 tons. Deadweight ships, in turn, also have cranes and can easily carry large lots of steel as break bulk.

Up to these limits, ships are suitable for transporting break bulk cargo. However, for ships above 50,000 to 70,000 tons, they are more suited for bulk cargo.

Thus, the type of ship used for transporting goods depends primarily on its capacity and the size of the vessel. Generally speaking, ships classified as break bulk are those with deadweights between 17,000 and 20,000 tons.

Currently, we have a large number of these ships equipped with cranes and heavy-lift capabilities. These ships are called heavy lifts, designed for heavy cargo. These ships can lift up to 3,000 tons per piece. This is a very specific market segment for break bulk cargo.

These are large industrial equipment vessels, typically used for the energy industry. They are ships that lift modules for oil platforms, ranging from 1,000 to 2,500 tons, or even 2,700 tons.

Cranes on Break Bulk Ships

To operate with special cargo movement, the ship may have a crane with a transport capacity of at least 15,000 tons. Thus, when the ship docks at a port to load or unload break bulk cargo, it needs a crane for the operation.

If the vessel doesn’t have one, the terminal needs to provide the equipment to facilitate the loading or unloading. Break bulk ships typically have cranes, although there are also ships that carry break bulk cargo without cranes.

Terminals and Cargo Handling Areas

In addition to the type of ship used for cargo transport, the structure of the port receiving the cargo must be taken into account. From the perspective of cargo reception locations, the cargo handling area and the terminal’s draft are two important factors.

Draft refers to the depth to which a ship is submerged in water. It represents the distance between the ship’s keel and the waterline.

For example, if the terminal has restricted draft, certain ships may not be able to dock at that port, as there may be no facilities to handle unloading needs. Another relevant factor is the crane. As mentioned earlier, it’s essential to check whether the ship or terminal has the necessary crane for unloading.

Skilled Labor

In addition to structural aspects, skilled labor is a key point in the entire cargo movement, loading, and unloading process. In heavy lift segments — special and super-heavy cargoes — the ship’s crew usually handles the vessel, rather than the longshoremen. Therefore, it is crucial to have a crew with the knowledge and skills needed to operate.

heavy lift operations, longshoremen typically handle the cargo on land, with little participation in the process. The cargo is placed directly onto a trailer for transport to another area.

Handling Special Cargo

Handling procedures are another critical factor when dealing with break bulk. Here, it is important to highlight that the type of product determines the handling processes.

For example, steel exporters already have specific terminals where procedures will take place. Additionally, they may subcontract a terminal with qualified personnel to handle the cargo. Once the product is lifted onto the ship, it becomes the responsibility of the shipowner and the captain.

Inside the ship’s hold, technical factors are considered — such as stacking, spacing, weight, etc. The stowage of the cargo is always supervised and directed by the ship’s command to ensure its integrity during transport.

The captain also ensures that proper safety practices are followed in the hold. The stowage process is only completed after their approval. The ship’s first officer is generally responsible for approving that the stowage has been done to the satisfaction of the ship’s command.

Break Bulk for Long-Distance Travel

Break bulk cargo is most commonly used for long-distance journeys. Therefore, in general terms, it is more viable for longer navigable distances due to the cost-benefit ratio.

On the Brazilian coast, there are still economic conditions to load bulk cargo, but, as a rule, the process is done by rail. Strategic logistics is important and impacts costs and efficiency in transport operations. Sometimes, coastal shipping may be more appealing, but in other situations, break bulk is the more viable option.

Cargo Integrity

In recent years, there has been significant growth in logistics service companies. After the pandemic, many sectors expanded, and break bulk transport was directly impacted.

Break bulk cargo has benefited from this “movement”: nowadays, it is easier to find break bulk shipments in cargo planes, for example. However, this modality could lose space again, usually due to the search for balance in container transport.

Another key factor is the energy transition movement. We are experiencing this process, and it has significantly increased the demand for break bulk transport.

The oil sector has always been a major demander of break bulk due to equipment, platforms, refineries, power plants, and more. Now, with the energy transition and wind energy equipment (nacelles, hubs, blades, and metal structures), the demand for break bulk transport has risen even further.

In fact, with this increase, the freight for these cargoes has also risen. Additionally, there is increasing demand in specific regions, such as Northern Europe, which is one of the largest investors in the energy transition worldwide.

In practice, equipment manufactured in India, China, and Turkey is transported to Northern Europe on break bulk ships. Because they are heavy, a high volume is required. This growing movement is affecting the sector and will likely reflect in prices and the creation of new solutions.

Break Bulk and the Maritime Transport Market

Market expectations point to increased demand for ships capable of handling break bulk. Brazil, for example, does not yet have an offshore wind transition process, but it holds one of the largest market reserves in the world.

When regulations for offshore wind investments are established, our country will also demand many break bulk ships. This is because the energy transition is a hot topic and will continue to directly impact the maritime transport market.

Given the specificities of the cargo, there will be a need to increase the break bulk fleet — especially heavy lifters. Therefore, when talking about trends and market expectations, it is important to pay attention to this movement.

As you’ve seen, break bulk is a special form of transport for goods with unique dimensions and/or needs. This modality is already widely used in market sectors that deal with products such as cellulose, steel, fertilizers, and coal.

Expectations indicate growth in demand for this type of transport, primarily due to the energy transition progressing in Europe, which is likely to spread to other continents. In fact, in the next ten or 15 years, the maritime transport market will need to adapt to these changes in specific needs and demands for break bulk ships.

So, if you’re an importer, exporter, or logistics professional, it’s important to stay on top of key terms and concepts used in the maritime sector. Additionally, understanding market trends is crucial, as this knowledge helps keep your business prepared to handle potential market changes.

Did you enjoy learning more about break bulk and the special handling of cargo?

Keep diving deeper into the subject by reading about the cargo inspection process.