Breakbulk making a comeback in Pacific Northwest

Despite the expectation that 2024 break bulk volumes will be lower than 2023, Washington state ports have a positive outlook for break bulk in the next few years.

Despite the expectation that 2024 break bulk volumes will be lower than 2023, Washington state ports have a positive outlook for break bulk in the next few years.

More than a decade ago, break bulk in the Pacific Northwest meant lumber. While those days are long gone, Pacific Northwest ports are seeing a resurgence in break bulk, driven by equipment from Asia – including construction equipment, wind turbines and data center transformers.

Northwest Gateway

“We’ve had a fantastic year for break bulk,” says Andre Elmaleh, Senior Manager of Business Development at the Northwest Seaport Alliance (NWSA), which includes the ports of Seattle and Tacoma, the largest break bulk gateway in the region.

Elmaleh says break bulk volumes at Tacoma – currently NWSA’s primary break bulk port – have trailed off slightly during the last couple months. However, he adds, “Break bulk has been increasing all year, and we expect it to resume at a pretty brisk level in the new year.”

Elmaleh attributes the recent dip primarily to interest rates. The types of construction equipment that make up about 80% of Tacoma’s break bulk volume can cost half a million dollars per unit, so interest rates on financing can have a huge impact. Plus, the fall is typically slower for break bulk. But overall, he says the port’s break bulk volume is significantly greater than pre-pandemic – and it is growing.

Aberrations in shipping trends during the pandemic mean that the ports are not seeing linear increases in break bulk, so comparisons with pre-pandemic performance is a more accurate indicator. If you remove the pandemic from the equation, break bulk shows steady growth for Port of Tacoma. For example, NWSA break bulk volume last year was 356,062 metric tons, compared to 246,412 in 2019.

“2024 is still going to be about 340,000 tons, which is great volume,” he adds, also forecasting up to 3% growth for 2025. “Northwest Seaport Alliance values the break bulk business, and we intend to provide a growth path to meet Wallenius Wilhelmsen’s and other customers’ needs.”

Wallenius Wilhelmsen handles about 80% of Port of Tacoma break bulk business Elmaleh confirms, adding “Wallenius Wilhelmsen makes break bulk happen for us.”

Welcome To Terminal 46

In March 2024, NWSA opened Terminal 46 in Seattle Harbor, specifically built for break bulk and auto cargo. This re-purposed container terminal offers about 50 acres of cargo lay-down space for shippers. Pacific Terminal Services Company (PTSC) operates the terminal alongside International Longshore and Warehouse Union (ILWU) Local 19, who will unload cargo from vessels at berth alongside the terminal.

“We are very satisfied with the performance of our break bulk business through Tacoma and want to see break bulk grow in Seattle as well,” Elmaleh says, clarifying that NWSA is not trying to reposition Tacoma cargo to Seattle, but rather build new business that can take advantage of the new terminal.

“We’re looking for greater opportunities in the break bulk market through that gateway,” he explains, noting that Port of Seattle offers plenty of space, outstanding interstate and rail access, and lift-on/lift-off capabilities. “We are committed to break bulk, willing to tailor the Seattle experience to whatever the customer desires, and we’ve got a motivated workforce to support it. Our partners, ILW Local 19, have been terrific to work with, they understand break bulk cargo, and they’re hungry for additional work.”

Wind From the West

Port of Vancouver USA on the Columbia River just north of Portland, is also seeing growing break bulk business, including wind energy components, data center transformers, steel and aluminum.

The port has experienced softening in traditional steel imports since 2019, due to U.S. policies that favor domestic sourcing of steel. However, they have seen a significant rise in wind energy break bulk – originating in India, Indonesia and China – over the same period. Wind equipment, including blades and parts of the towers, represents more than 50% of Port of Vancouver USA’s break bulk volume.

“Almost all of our wind energy break bulk is destined for Alberta and Saskatchewan, in Canada,” says Alex Strogen, Chief Commercial Officer at Port of Vancouver USA. “We have found a niche role in supplying those wind energy shipments into Canadian provinces, even though you would typically expect they would go through British Columbia ports. We’ve done about 20 wind energy vessels, and 1000-wind components, this year.”

Port of Vancouver USA was seeing as many as 2,000 units during 2022 and 2023. Strogen attributes the softening to the Inflation Reduction Act, which came into law in summer of 2022, providing significant tax incentives if manufacturers build wind turbines in the U.S. While the law does not impact Canada, there have been some permitting issues up North, but Strogen does not see this obstacle as long term. “I think that’s a temporary blip on the overall picture,” he says. “I think once those permitting issues get worked through up in the Canadian provinces, we’ll see a return back to some of our historic wind energy volumes.”

Strogen continues, “So, while we’re looking at a pretty quiet 2025 as well, we have indication that into 2026 and beyond, we will see an upturn in our wind energy business going into Canada.”

Washington ports are ideally situated to serve Canada, another reason for expected break bulk growth in the regional ports. For example, wind components from Asia can pass through Port of Vancouver USA on the way to Canada. The port operates a customs bonded facility, so the break bulk cargo can avoid duties and tariffs while still delivering economic benefits to the region. “From our perspective, it generates a great economic return even though ultimately the product is not destined for the U.S.,” says Strogen.

Size Matters

Break bulk is all about over-size cargo, but the wind blades shipped through Port of Vancouver USA are putting that challenge to the test. Strogen says 15 years ago they handled wind blades under 50 meters in length. Today, wind blades coming through the port are close to 80 meters. Understandably, the port had to make some changes to accommodate this large cargo.

“Inside the port we had to remove fences and light posts in order to clear the way so these massive wind blades can transit through without being damaged,” Strogen explains. “As we look ahead to 2026, we are already having to re-examine our infrastructure, knowing that the next generation of wind blades are going to be 85 meters long.”

Strogen says the rail clearances on the West Coast are no longer compatible with the size of these wind components, so they must be moved by truck or barge. “As we get ever larger components, we’re going to see this trend where we eventually reach the limit of the roadways, and then we’re going to need to use the barge solution more aggressively going forward,” Strogen adds.