Commentary Breakbulk & Project Cargo
Drill, baby, drill
By Susan Oatway
Unprecedented acquisition activity in the oil and gas sector in the US, Central and South America, the Middle East and Asia has taken global capital investment to its highest level since 2015.
In its October Global Upstream Spending Report, S & P Global, parent company of the Journal of Commerce, said investment in oil and gas, one of the strongest sectors for breakbulk and project cargo demand, was up 4 % year over year.
S & P Global projects global demand for gas turbines to grow 5 % in 2025 before slipping slightly through 2029. Demand for gas compressors is forecast to grow 6 % this year, again with a slight decline in growth projected
General cargo volumes jump 2.7 % in H1 2025
General cargo volumes in energy and mining, transportation, and metals sectors
Million metric tons
214 200
150 100 100
50
0 Q1 2023 Q3 2023 Q1 2024L
Q3 2024 Q1 2025Q2 2025
Energy and mining Transportation equipment and parts Metals and metal products Notes: Data as of October 2025
Source: S & P Global © 2025 S & P Global
through 2029. Emerging demand from the clean energy sector is expected to balance any decline from the traditional oil and gas sector, according to S & P Global’ s October Industry Trends report.
Meanwhile, power generation, particularly for data centers, is also expected to increase demand for project cargo to 2029. While the centers themselves will house minimal heavylift items, their huge power demand is driving on-site power projects. These“ bring your own power”( BYOP) projects, needed to avoid interconnection and transmission delays, are driving heavy-lift cargo demand. Carriers speaking to the Journal of Commerce in October confirmed that shipments of battery storage units and transformers are booming for 2026.
Seaborne cargo volumes for commodities associated with energy and mining, transportation equipment and parts, and metals and metal products( all typical project cargo) increased 9.3 % in the second quarter from the first quarter, according to S & P Global.
Total upstream spending is expected to grow by an average of 3.9 % by 2029, according to S & P Global Commodity Insights. The US accounted for 55 % of worldwide upstream investment in 2024, with acquisition costs rising 264 % to $ 238 billion through major consolidation deals.
Over the reporting period, the threat of tariffs loomed large over the industry, but the main effect was logistical rather than economic. Some services were suspended in the early stages, as the industry tried to come to grips with the changes. The uncertainty around
18 Journal of Commerce | December 2025 www. joc. com