What is project cargo?
What is project cargo and how is it shipped? Project cargo, also known as project transportation or project logistics, is the transportation of large, complex, or high-value equipment, including bulk cargo, that can be transported by land, sea, or air. The process involves single or multiple transports with the help of cranes, trucks, railroads, planes and ships. Additionally, project shipments tend to have specific time frames or specified delivery dates, making these shipments some of the most complex and detailed projects in the entire logistics industry.
What does the project freight service include?
Not all industries need these services, but several definitely rely on them. Perhaps the best way to understand what project freight means is to mention industries that rely on the expertise of project freight forwarders.
First, we have oil and gas, because flammable materials are notoriously difficult to transport. Moving them requires a lot of logistics. The same applies to mining and quarrying, power generation, infrastructure projects and renewable energy, such as wind turbines.
By hiring a project freight forwarder, businesses belonging to any of these industries can benefit from using several important services. To move bulky loads, you need multi-axle heavy-duty haulage equipment suitable for the specific task.
There are many other professional services such as project planning and management of all necessary licenses. Let’s not forget project cargo insurance, which is essential for transporting such sensitive and often dangerous goods.
Crane service and engineering transportation programs are also critical. Finally, planning customs clearance agreements for international shipments is an important part of project freight services.
Which industries are mainly involved in project cargo transportation?
Engineering cargo transportation is used in many industries, but the transportation needs of specific industries have continued to grow at a faster rate over the past few decades. Global Forum projects for wind farms are expected to grow in Asia, North America and Europe. Nuclear power plants in China, India, South America and the Middle East are also driving growth. The demand for mining-related equipment is increasing due to increased demand for metal commodities. Global natural gas consumption is expected to grow by nearly 50% by 2035. The vast U.S. shale gas resources are also one of the most promising factors in our study of project freight scheduling needs.
What challenges does project freight face?
There are many freight forwarding companies with expertise in transporting project cargo. Still, not all of them are competitive, as there are some persistent hurdles to consider.
One of them is shipping costs. Expanding environmental regulations and changes in how the industry operates have resulted in higher costs for transporting project goods. Rising fuel prices are a significant variable, especially when shipping includes several different modes of transport.
Another issue with heavy equipment cargo is technological advancement. There is always room for improvement, but project freight lags in specific sectors.
A notable example is the often inefficient tracking of goods. Finally, customer expectations have risen over the years, so the shipping industry in general has had to keep pace with customer service.
The following is a to-do list in project cargo shipping:
1) Advance planning is key – initial shipping advice for shipping oversized or overweight cargo can save shippers and costs, provide certainty and reduce surprises. When planning ahead, allow enough time to coordinate shipping details.
2) Choose a quality shipping provider:
a) Have a quality engineering team
b) Have the financial strength to take certain risks and responsibilities
c) have a good track record, practical experience and country knowledge
d) Emphasis on proactive communication to maintain fast response time to changes/issues
e) Extensive knowledge of equipment, local transporters and manufacturers of equipment and materials, and quick and flexible access to expertise
f) Accuracy and honesty of pricing
g) Impeccable execution
3) Develop contingency plans – Unforeseen events may cause the initial shipping plan to fail to function properly, in these cases alternative plans should be developed to minimize and resolve the problem.
4) Continuous Improvement Work – There is always room for improvement in project cargo transportation. Tracking the results of completed project cargo shipments and developing potential areas of improvement can help future shipments produce better results.
