Project cargoes : a good fit for shipping companies or logistics companies? Part I : The shippers’ perspectives to the suitability of shipping companies and logistics companies to carry out project cargo transportation

Abstract

Project cargoes belong to a niche sector of maritime industry where specialized vessels and equipment are required to handle and transport oversized and heavy cargo. Driven by large-scale infrastructure and energy projects, the transportation of project cargoes is typically carried out by logistics companies and shipping companies, though the depressed shipping market has pushed other carriers from bulk and container sectors to compete for project cargoes as well.

This paper seeks to identify a suitable transport service provider for the carriage of project cargoes from the perspective of a shipper. Primary and secondary sources of information from interview sessions with industry professionals, trade journals and online databases are gathered to understand the market, identify key shipper requirements and the distinct competencies and limitations of each type of transport service provider.

Information gathered from the literature review and interview sessions with industry professionals facilitates the identification of key shipper requirements. Core competencies and limitations of both shipping and logistics companies are matched to these key shipper requirements to understand 1) the suitability of both types of service providers in meeting the transportation needs of project cargoes and 2) how both parties complement each other in their services. The paper provides shippers with a comprehensive analysis of the various advantages and limitations of each service provider. It also serves to enable transport service providers to better meet their clients’ requirements for carriage of project cargoes and enhance their competitiveness in this industry.