SECTOR REPORT
due to their geography,” he adds. “However, significant growth only happens during specific external factors, such as oil price fluctuations or global container shortages. Even then, this growth is limited in duration.” He also notes that electrification for breakbulk operations is moving relatively slowly but is happy with the amount of new equipment on offer. “Companies like Taylor offer a wide variety of new material handling equipment, from electric to alternative fuels,” he says. “The challenge is breakbulk markets are stagnant in the US, and very few new terminals enter the market. Also, stevedoring companies vary when it comes to budgeting capex to replace aging equipment. Some do a great job adding new equipment over time, while others will run old equipment far beyond depreciated life value.” Although the equipment is available,
procurement is another matter. “Stevedores are considering replacing material handling equipment with alternative fuels and electric options where markets allow,” he adds. He acknowledges that there are incentive programmes, such as the EPA Clean Ports grant, which subsidise the cost of energy-efficient equipment. “However, the qualification standards for these programmes can be challenging, and none of LGP’s stevedore operators have utilised the programme in 2024,” he says. Another challenge is the current tightness of
margins in the breakbulk handling sector. “The competitive markets with multiple stevedores allow ocean carriers to negotiate lower rates, which in turn reduces profit margins for stevedores,” he says. “Lower profits can affect companies’ ability to reinvest in equipment.”
Market outlook Tillotson is also honest and forthright in his predictions for the future. “The outlook is uncertain due to fluctuating volumes and suboptimal cargo handling rates,” he says.
The Louisiana Gateway Port is struggling with growth under current market conditions.
Meanwhile, Liebherr Maritime Cranes believes that the outlook is strong. The company notes that, as global supply chains diversify and infrastructure investments grow, the volume of non-containerised cargo is expected to increase. “Therefore, the rise of project cargo and oversized freight which cannot be containerised will continue to drive demand for specialised handling equipment,” it says. Environmental regulations and digital transformation will also shape future equipment design. “Ports are increasingly seeking solutions that combine sustainability with intelligent operation,” the company adds. “Liebherr is focused on meeting these needs through electrification, automation and customer- specific engineering.”
Liebherr sees several industries driving
growth in breakbulk handling. The renewable energy sector, particularly wind power, is increasing demand for the transport of large components such as blades, nacelles and tower segments. Infrastructure and industrial projects are also contributing to the rise in non- containerised cargo.
Regionally, it says South East Asia,
West Africa and South America are seeing increased demand due to port development and industrial expansion. In Europe, inland ports are investing in breakbulk capabilities to support multimodal logistics and reduce road congestion. “These trends point to a sustained need for flexible, high-capacity handling solutions,” it adds. Overall, the breakbulk shipping market is
predicted to grow significantly. Market analysts Mordor Intelligence value the global breakbulk shipping market at an estimated $35.64bn for 2025. They predict that it will reach $43.65bn by 2030, demonstrating an average CAGR of 4.5% over that period. Key recent changes outlined in its report include geopolitical tensions, regulatory
changes and evolving industry practices. It cites recent US sanctions imposed on Russia’s oil supply chain as having “notably disrupted trade routes to China and India, leading to increased shipping costs and a search for alternative oil sources by these nations”. It also highlights new EU maritime fuel
regulations, which came into effect on 1 January. These regulations mandate that commercial ships exceeding 5,000 gross tonnage operating in EU ports must reduce emissions or incur penalties. “The limited availability of alternative fuels such as biodiesel and LNG, coupled with competition from other sectors, is expected to result in increased costs, which will likely be transferred to consumers and businesses”, says the report. Elsewhere, the report notes that the Indian government has approved the Coastal Shipping Bill of 2024, aimed at modernising and streamlining the shipping industry. Key reforms include the removal of the trading license requirement for Indian-flagged vessels engaged in coastal trade, alignment of regulations with international standards and integration of coastal maritime transport with inland waterways. These measures are anticipated to enhance the competitiveness of domestic shipping operators and establish a more efficient and cost-effective transport chain. These views are broadly echoed by analysts Mobility Foresight, which offers further insights into key trends and regional differences. It notes that there are a number of new
products and services being launched in the breakbulk shipping market, including the development of digital platforms to facilitate the booking of shipments, the use of automated systems to manage the transportation of goods and the introduction of new technologies such as blockchain and the Internet of Things (IoT). Its analysts expect North America to remain a prime market for breakbulk, followed by Europe. It notes that Western Europe has some of the highest margins for breakbulk shipping “due to regional supply and demand dynamics”. Eastern Europe is predicted to grow at a faster rate than its western counterpart, due to the ongoing growth of its manufacturing base. However, Asia will remain the global manufacturing hub for breakbulk shipping, focused on China. Another area of high growth will be the Middle East, while Africa will see the largest increase. “This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive and healthcare,” says the report. Other areas of interest include Latin America, where growth is expected due to the increasing strength of its automotive industry along with mining.
x | August 2025 |
www.hoistmagazine.com
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