Project Cargo, also known as project forwarding or project logistics, is the transportation of large, complex, out-of-scope, or high-value pieces of equipment. The process involves single or multiple shipments with help from cranes, trucks, rail, planes, and ships and can cover a wide range of freight value. Project Cargo tends to have a specific timeframe or delivery date, making them among the most complex and detailed projects in the logistics industry.
Project Cargo is often associated with large-scale infrastructure and capital projects for a variety of industries, including:
- Oil and gas
- Wind power
Typically, Project Cargo includes multiple shipments of super-load category equipment, barging options, rail, and other specialized transports, all terminating at a single project site or staging area. Planning, timing, and close communication with project management are critical. Large loads are accompanied by smaller loads and containers of essential equipment needed as part of the overall project scope. Maintaining efficiency, visibility, and flexibility in such complex cargo operations is critical to eliminating risks and reducing costs.
What Drives the Demand for Project Cargo?
Current global economic demand rapidly consumable goods and services, supported by large-scale infrastructure, is the primary driver of increasing Project Cargo demand. As global economies grow, so does the need for new refineries, metals, traditional and renewable energy sources, power plants, and general infrastructure. Projections for the compounded annual growth rate for Project Cargo is over 4% within a current five-year period1. As emerging markets increase in infrastructure projects, managed transportation and logistics specialists are challenged to move complex cargo to regions that may lack ports, roads, and existing infrastructure to support the regular transport of such goods. Global expansion not only drives demand for Project Cargo but the demand for Project Cargo specialists. It is essential for these projects that experienced Project Cargo experts be involved early in the planning process to ensure flawless execution.
Project Cargo Preplanning
Successful Project Cargo executions require intelligent preplanning processes from the very beginning. With careful preplanning, planners can avoid a significant amount of unnecessary costs related to transportation, duties, and taxes. To do so requires expertise in developing detailed cost projections and analyses. Choosing a provider with a proven track record of successful transportation cargo is critical to success here.
As countries have many different regulations regarding customs compliance, documentation, taxation, exemptions, licenses, and more, the support of an experienced project cargo expert can help companies avoid all the red tape and uncertainties around regulations and budgeting. A project cargo expert can also provide essential insights into the cargo design process, freight routing, and options for final delivery. They can also advise on dimensional and weight restrictions to achieve successful performance and supply chain optimization during the shipment.
Project Cargo Execution
Project Cargo Execution needs to be as detail-oriented as the preplanning stage. According to transit time, delivery obligations, and other requirements, Project Cargo transportation providers carefully execute the preplanned move, keeping proactive communication, project visibility, and operational transparency at the forefront. At CLX Logistics, for example, our Project Cargo specialists work directly with all necessary countries en route to the destination to iron out customs compliance, authorizations, and paperwork beforehand.
During project execution, service providers orchestrate many moving parts, including suppliers, engineers, and shipping partners, to ensure these large-scale shipments keep moving and arrive on time and intact. Maintaining timelines throughout the process comes down to having the expertise, skill, and resources at your fingertips to make smart, split-second decisions when circumstances change. When a single connecting vessel runs off schedule, an entire project timeline can come to a halt without the proper contingencies. But with the right team and plan in place, Project Cargo is a highly efficient way to transport some of the largest and most complex shipments to job sites all around the globe.
CLX Logistics as Your Project Cargo Partner
The CLX Logistics Project Cargo team provides comprehensive transportation solutions that ensure your most critical shipments make it to their destination quickly and safely. We rapidly assess and analyze your cargo’s complexity, weight, delivery obligations, destinations, route, consolidation points, regional regulations, and onsite requirements, develop a plan accordingly, and oversee execution from start to finish, all while saving costs, improving efficiency, and maintaining complete accountability.
Get in touch with us today to learn more or speak with one of our experts about your next project.
- Mordor Intelligence: Project Logistics Market – Growth, Trends, Covid-19 Impact, and Forecasts (2021 – 2026), https://www.mordorintelligence.com/industry-reports/project-logistics-market