Letter from the Editor
Breakbulk & Project Cargo
Tariff volatility has compounded uncertainty, making it difficult to predict project costs and risks.
‘ Strategic inaction’
By Carly Fields
Breakbulk and project cargo shippers say they are delaying shipments in the hopes that time will bring more clarity when it comes to US import tariffs.
Carlos Cortes, supply chain director for North America at wood products shipper CMPC Forest Products, told the Journal of Commerce the company is monitoring tariff developments,“ but we are holding back on executing until we can get better visibility of the final situation,” a direction he described as“ strategic inaction.”
Cortes noted a slight decline in North American MPV freight rates, but said it was“ nothing significant” for contracted rates.
“ For me, the main takeaway is that the North America market is stable and holding on amid the geopolitical and economic conditions,” he said, adding that he hasn’ t seen major changes to capacity availability.
Continued stability in multipurpose freight rates could represent a“ calm before the storm” or indicate a resilient market environment, specialist broker Toepfer Transport said in its July 25 Multipurpose Shipping Report.
MPV charter rates tracked by the bellwether Toepfer Multipurpose Index( TMI) averaged $ 12,905 per day in July, up just 0.1 % from June. The TMI is based on expected average rates for six- to 12-month time charters for 12,500-deadweight-ton( dwt)“ F-Type” vessels with safe working loads( SWLs) of 240 to 360 metric tons, as reported to Toepfer by owners and operators.
Toepfer said the hoped-for reopening of Red Sea routes to the Suez Canal by the end of the year has gone by the boards due to the recent Houthi attacks on commercial vessels and tensions surrounding Israel and Iran.
“ The expected decline in tonnage-miles for breakbulk and project cargoes associated with the resumption of the Suez transit will not occur in the near future,” the broker said.
Meanwhile, the volatility around US import tariffs has compounded market uncertainty, making it difficult to predict project costs and risks involving the US supply chain.
A similar downbeat forecast applies to Europe, where weak exports are still sufficient to sustain break-even income for carriers, but“ there is no indication of improvement over the next few months,” Toepfer said.
A silver lining for the MPV market is that exports from the Far East“ continue to ensure the effective utilization of the fleet and the generation of sufficient income for carriers,” Toepfer said. And in Africa, carriers have reported to the broker that there has been“ a significant increase of cargo export.”
Charters are also steadily moving with the majority of F500 and F600 XL-type MPVs ordered on speculation and fixed at rate levels that reflect the stable-to-positive sentiment of carriers and the expectations of the investors and banks behind the newbuildings.
While ordering activity in the MPV space is currently limited— a fault of the“ current mismatch between charter rates and prices,” Toepfer said— behind the scenes, there is“ a sense of optimism and a readiness to seize opportunities, as many are eager to be prepared once the conditions align.”
email: carly. fields @ spglobal. com
Executive Editor: Mark Szakonyi 202.872.1234, mark. szakonyi @ spglobal. com
Managing Editor: Benjamin Meyer 916.716.6272, benjamin. meyer @ spglobal. com
Managing Editor: Kevin Saville, 212.488.4282, kevin. saville @ spglobal. com
Senior Editors: William B. Cassidy Trucking and Domestic Transportation 202.872.1228, bill. cassidy @ spglobal. com
Bill Mongelluzzo, West Coast 562.428.5999, bill. mongelluzzo @ spglobal. com
Eric Johnson, Technology 213.444.9326, eric. johnson @ spglobal. com
Janet Nodar, Breakbulk and Heavy Lift 251.408.2090, janet. nodar @ spglobal. com
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Ari Ashe, Southeast Ports, Intermodal Rail 202.548.7895, ari. ashe @ spglobal. com
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Carly Fields, Associate Editor, + 44( 0) 7966 210030, carly. fields @ spglobal. com
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4 Journal of Commerce | September 2025 www. joc. com