Commonly known as project cargo logistics or project cargo forwarding, project cargo shipping is a highly complex logistics function. In essence, it involves the use of multiple different transport mediums and routes to have complex cargo transported under tight timelines. Due to the sheer complexity, project cargo shipping is often considered a hallmark of the global logistics and shipping industry.
What qualifies as project cargo?
For starters, the type of freight being transported has to be high volume and high value. Moreover, a tight timeline is required in order to have these goods or materials carried to their end destination. Oftentimes, multiple different parts or materials are shipped from different originating points. Their coordinated arrival is required in order for the customer to begin making use of them.
Commonly project cargo freight is global and requires precise planning by logistics experts. The mining, construction, oil and gas industries are examples of heavy funders of project cargo shipments due to the intricate nature of their cargo or equipment, some examples will be heavy machineries, industrial construction and mining vehicles as well as movement of entire factories broken down into transportable parts. Another example will be to think of the supplies needed to start a power plant or a wind farm.
Why is strong logistical expertise needed?
In order for project cargo to reach their destination within tight timelines, many different logistics companies are often required. This ranges from manufacturers to couriers, shipping companies to regulatory bodies. It thus takes a high amount of strategic thought and communication to coordinate all the moving parts in the project.
Pre-planning as the core of project cargo
The core of all project cargo logistics operations is the pre-planning phase. Logistics companies consider the following during the pre-planning phase:
- The financing aspect of transporting all the cargo
- Regulations governing individual ports, shipping lanes and transportation
- Precise timelines of various phases of the project cargo shipping
- Risk management in the event that complexities arise
- Customs and paperwork for all moving parts
- Selecting partners to operate within the supply chain