One of the major paradoxes now, says LeFrere, is that a great deal of new multi-purpose vessels are being built in anticipation of a bulk/break-bulk resurgence. His company owns and operates a large, balanced fleet comprising chemical carriers, tankers, and combination “product-suitable” vessels that can be reconfigured to carry a variety of goods.

“Finding rail cars is the biggest hassle,” he says. “If you have ethanol being made in the Midwest, it could be easier to move it to Portland, Ore., rather than down to New Orleans. It is slower, but makes more sense than waiting for the railroads to provide the necessary equipment.”

According to LeFrere, many of the new chemical and fuel processing plants which were originally positioned near rail lines and interstate highways are no longer attracting the traffic needed to sustain a stable supply chain. “It’s simply not profitable for a short-line railroad to run cars out there, or for truckers to spend money on fuel for trips that have no back-haul value. The same is often true of barge operations.”

The good news is that many domestic ports and waterways are attracting private investment. For example, Wilmington, Calif.-based Nautilus International Holding Corp. recently acquired the Savannah International Terminal (SIT) on the south side of the Savannah River. SIT offers export and import bulk/break-bulk stevedore and marine terminal services, as well as bagging services. The facility specializes in clay exports, but planned terminal improvements will expand the range of bulk cargo capabilities.

But while seaports on the Atlantic and Pacific coasts can oblige bulk/break-bulk shippers, it’s the Gulf gateways that handle most of the volume. The biggest of these is the Port of South Louisiana which stretches 54 miles along the Mississippi River.

“Over 55,000 barges and 4,000 ocean-going vessels call here each year, making it the top ranked in the country for export tonnage and total tonnage,” says port spokesperson Ardyn Thriffiley. With exports of 51 million tons of cargo a year, that’s more than any other port in North America, and it’s also worth noting, says Thriffiley, that the port accounts for 15 percent of total U.S. exports, and is poised to get even bigger thanks to new investment and “blue chip” tenants.

“We have eight port-owned facilities, ranging from grain elevators to general cargo and bulk docks,” she says. “The port serves primarily as landlord to eight facilities leased to operating companies such as Occidental, Archer Daniels Midland, and Cargill. The exception is the Globalplex Intermodal Terminal, which the port purchased in 1992 and is currently redeveloping into a complex to accommodate a variety of dry bulk and break-bulk cargo.”

Industry experts agree that there is substantial reason to remain bullish on South Louisiana and similar ports worldwide. James J. O’Brien, the former executive director of the Port Everglades, Fla., notes that more than 100 ports worldwide have significant bulk/break-bulk operations, supporting carriers, charter brokers, and logistic specialty firms.

“Ideally, the port terminals will have strong wharves, wide aprons supported by modern transit sheds, and backed-up by warehousing,” says O’Brien. “Either rail mounted or mobile cranes are necessary to handle heavy cargo units beyond the vessel’s capability.”

Railcar access to the dock apron is also essential to a strong break-bulk port, he says, as well as good railroad connections without high and wide cargo restrictions. Ports with navigable inland waterway access may also have the ability to serve waterside destinations efficiently and at lower transportation cost. “Unlike container operations where containers can serve markets far from the port of arrival, multi-purpose vessels will usually seek out the gateway in closest proximity to the destination,” adds O’Brien.

Many of those destinations today are located in the so-called “developing world,” where port authorities are trying to do more with less.

“Given relatively limited container handling capability in these countries,” notes O’Brien, “break-bulk shipping has been the common method of transportation, particularly for foodstuffs. The problems of distribution have arisen after the cargo is discharged and is moved by truck to inland locations.”

According to O’Brien and other industry analysts, theft, pilferage and poor inland connections dramatically reduce the distribution of supplies to their destinations. “It is unlikely that container operations, even if doable, could ease these problems, and in fact might exacerbate the problems if the containers are never recovered once they leave the port area,” he says.

Stevedoring these vessels requires special cargo handling skills, too, notes O’Brien, who adds that “experienced superintendents and longshore labor” represent crucial components for smooth loading.

Project cargo—a prominent subset of break bulk—also requires special vessels, port operations, and trained personnel. Michael Ruediger, project chartering director of Houston-based UTC Overseas, Inc. says that the closest port to the final destination may not always be the best one.

“Especially if it lacks the lift capacity, rail, or road connections or specialized equipment needed for a cost-effective and safe move,” he says. Besides noting the lack of “experienced manpower,” he says other global trends are having a negative impact on this transport mode.

“Traditionally, as long as we delivered a cargo at one port and picked it up at another, we had no risk exposure during the voyage,” he says. “Today, operators are trying to shift more and more of their risks to the shipper. If a voyage is delayed by bad weather or other circumstances, they may try to assign the extra costs to shippers on a pro-rata basis.”

According to Ruediger, fuel and currency adjustment factors are also mechanisms to shift these risks. He says that surcharges for putting cargoes below deck is becoming common, and that operators are adding “without guarantee” clauses to contracts which hold them harmless for failure to deliver contracted services. “As shippers, given today’s very high rates, we believe strongly these contracts should be more inclusive,” he says.

How is break-bulk used?