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The ships that carry these break bulk cargoes are known as Break Bulk, Multi-Purpose or General Cargo vessels and come in a variety of sizes and types such as Single Decker, Tween Decker, Box Holds.
Cargo can be loaded under deck, on deck or between decks (tween deck) which some of the ships have like shown below
Vessel with a tween deck
In a break bulk or multi purpose vessel,
- Cargoes may belong to various customers
- No dedicated berth or terminal required
- Can operate from any free berth
BREAK BULK SHIPS ALSO COME IN TWO FLAVOURS
- Gearless – meaning the ship doesn’t have its own cranes and/or other cargo handling equipment which means these ships can only berth at a terminal which has the required cargo handling equipment.
2. Geared– meaning the has its own cranes and/or other cargo handling equipment which means these ships can call at any suitable berth at the port for cargo operations..
Freight rates for Break Bulk cargoes are worked out on the basis of Freight Ton or Revenue Ton which means freight is charged on the volume (CBM) or weight (MT) of the cargo whichever is higher.
What is Breakbulk?
Breakbulk ocean shipping is a common method used to successfully transport cargo or goods that cannot fit in standard-size shipping containers or cargo bins. Instead, cargo is transported in bags, boxes, crates, drums, barrels, other handling equipment, or is simply rolled, lifted, or pushed onto a ship or barge.
Examples of common breakbulk goods include reels and rolls, steel girders, structural steel, heavy or oversized goods, manufacturing equipment, construction equipment and vehicles. Though the containerization method is one of the more popular shipping methods, breakbulk is noticing an influx of interested shippers with oversized items.
According to Global Security, breakbulk and bulk is projected to make up half of all cargo (by volume) entering or leaving the U.S. and will make a large portion of the shipping market in 2020.
Major changes aren’t expected to come to breakbulk, therefore, the demands on port infrastructure, vessel safety, and law enforcement will remain stable.
Here are the top four benefits of breakbulk shipping:
· The ability to move oversized and overweight items that won’t fit in a container or cargo.
· Reduction in time spent on deconstruction and reconstruction so that items are ready for dispatch.
· Goods can enter smaller ports that typically would be unable to accommodate larger container ships or tankers.
Goods don’t have to be combined in a container; therefore, items can be shipped separately.
Oversized, Heavy Lift and Out-of-Gauge Cargo
Equipment or goods that are tedious to break down or oversized can benefit from breakbulk shipping. Instead of breaking down the product to fit into a container or bin, the shipper can send the item in its entirety.
Typically, a breakbulk ship is equipped with high capacity deck cranes and additional equipment necessary to load and unload these oversized or heavy goods. Additionally, high deck strength barges are sometimes used to facilitate loading this cargo by rolling it on and off the vessel.
Affordable
Cargo is transported to and from ports by land, which is usually an efficient option for shippers needing inland services. Otherwise, breaking products up into containers tends to be more expensive than wholly containerized goods.
Reduced Deconsolidation and Reconsolidation
Cargo on a breakbulk vessel, such as a barge or ship, doesn’t have to be deconstructed or separated into pieces. Therefore, it may be a more affordable option for shippers with oversized cargo. Ultimately, this leads to a faster delivery time.
Smaller Ports
Breakbulk is deliverable to most ports around the world and requires little to no deconsolidation or reconsolidation. When loading and discharging goods at a port, equipment is already available on the ship, which saves time in transporting products.
Separated Containers
Breakbulk doesn’t require that goods are separated into containers to be transported. Instead, heavy or oversized items are loaded with special equipment such as cranes to load the ship. This makes bulky items easier to transport.
Why Oceanic Breakbulk is Preferred
RO/RO (Roll On-Roll Off) is typically used when transporting breakbulk shipments. Most heavy breakbulk shipments use RO/RO and avoid fees such as container hire, storage, additional labor and equipment rental. RO/RO liner services also utilize a frequently scheduled time table which results in fewer short notice cancellations or postponing’s. If the route to deliver your goods are complex, a transhipment will ensure that cargo reaches its destination in a reasonable time.
Heavy breakbulk is lashed to handling equipment which prevents lifting and no dismantling. As a result, cargo is rolled on to a deck based on its weight and width.
How does ship chartering works
- A voyage charter.
The voyage charter is the most common type of charter. The name comes from the fact that the vessel is generally rented for a specific voyage between two ports. For example, it could be agreed that the voyage will only be between Dubai and Melbourne – once the voyage is complete, the ship owner takes back control of the vessel. With a voyage charter, the charterer also usually hires the crew from the ship owner, although this doesn’t have to be the case.
The charter party will also contain details relating to the time allotted for loading and unloading the vessel, which is known as laytime. If the allotted time is exceeded, penalties are applied by the ship owner. On the other hand, if the time taken is less than stipulated, the charterer often receives a partial refund.
In terms of payment, a voyage charter is generally charged on a per-ton basis. However, when the cargo has a high weight, the charterer often instead pays a lump sum fee.
Finally, a voyage charter can be a one-off contract, but it can also be part of several consecutive voyages. For example, the vessel could make the voyage from Dubai to Sydney and back again a set number of times.
- A time charter.
While a voyage charter sees the vessel leased for a specific voyage, a time charter allows the charterer to use the vessel for an agreed period of time. During this time, the charterer has complete control over where the vessel goes, deciding on routes, destinations, and more.
With a time charter, the charterer isn’t just responsible for the vessel – they are also responsible for most costs incurred by the vessel during the agreed time. These can include cargo handling costs, fuel costs, port charges, and more.
The time charter comes to an end not when the ship has reached a specific location, but when the specified time runs out. Should the vessel be held up due to unforeseen circumstances, the extra time spent is not generally considered to be part of the allotted duration.
Some vessels like tug boats, anchor handling tugs, crew boats and supply vessels are usually chartered to support a specific civil construction or offshore project and not for cargo movements. The common charter contract for this purpose is Time Charter or Bareboat Charter.
- A bareboat charter or demise charter
Finally, there’s the bareboat charter, which is sometimes referred to as a demise charter. This type of charter is generally used by charterers looking to lease a vessel for a long period of time, often for many years. During this time, the charterer assumes full responsibility for the charter ship, both legally and financially.
The charterer will pay for everything associated with the vessel during the charter time, including costs associated with crewing, fuel, and insurance. This means that the ship owner only pays the initial cost of buying or constructing the vessel, which is appealing for ship owners looking for as little involvement with the day-to-day running of vessels as possible.
The bareboat charter can be a simple lease, but it can also be something akin to a hire-purchase agreement, which sees the charterer eventually gaining ownership of the vessel.
