With uncertainty surrounding the Strait of Hormuz ceasefire, disruptions are still expected to continue in both exports and imports within the region. Amongst these massive delays are the flow of project cargo and breakbulk shipments. A good volume of project cargo passes through the Strait of Hormuz and according to a Drewry’s senior research analyst, the breakbulk trade to and from the Middle East leans slightly toward being import driven.
Project cargo is a big percentage of Middle East cargo traffic
In the first two months of 2026, project cargo accounted for eight to nine percent of all vessel traffic in the region. To put that in perspective, general cargo vessels represented only one to two percent. As the war continues, oil and gas projects that drive the demand for project cargo will remain delayed or stopped with the ongoing shipping restrictions and vessel bottlenecks in the Middle East.
Project carriers with specialized vessels could be exposed due to their narrow scope or lack of ability to be used for other purposes. This has left uncertainty for multipurpose vessel (MPV) operators and project cargo shippers serving these markets. However, when the conflict ends, it is predicted that the rebuilding of critical infrastructure in the Middle East that has been damaged by the war will increase project cargo demand as well as freight rates for MPV.
What kind of specialty oversized project cargo is being affected?
Right now, the breakbulk cargo impact is greatly significant in areas focused on heavy machinery, modules, energy, infrastructure project items, and equipment for oil and gas. With the closure, there are delays in these essential pieces, which are causing large setbacks for projects in the Middle East.
How shippers are getting around the disruptions with additional measures
This has led to the need for temporary storage. For example, even though U.S. liquified natural gas (LNG) exports hit a record 11.7 million tons in March this year driven by the Middle East disruption in supplies, with the majority being sold to Europe and Asia, the imports of oil and gas technology and equipment from the U.S. to the Middle East have been delayed.
Major hubs for project cargo and industrial shipments include Saudi Arabia and the United Arab Emirates (UAE). Currently though there has been some rerouting to avoid the Strait of Hormuz, but this has added travel time to ships’ voyages, increased the demand for vessels, and caused landbridge bottlenecks. Yet, diverting ships around the Cape of Good Hope tends to add one million dollars per ship in fuel on top of the already delayed project timeline costs. Further charges are also being seen in war risk premiums for vessel insurance making the movement more expensive and unpredictable. All the areas mentioned above are having a great impact and are straining project logistics budgets.
