From Malaysia and Korea to New Orleans: Optimizing a Global LNG Project

In the dynamic landscape of the oil and gas industry, one global manufacturer stands as a beacon of innovation and excellence. This leading international supplier and technology licensor plays a pivotal role in the petroleum refining, gas processing, petrochemical production, and major manufacturing sectors. Their innovative processes yield the fuels that propel our vehicles, power our industries, and warm our homes. The company entrusted C.H. Robinson to help with the critical transportation of project cargo from Malaysia and Korea to New Orleans.

Traversing the complexities of a high-stakes, global project move

The natural gas sector, an $81 billion (USD) industry, presents unique challenges, especially when it comes to logistics. The movement of critical liquified natural gas (LNG) components—such as cold boxes, tanks, and purifier vessels—requires precision, coordination, and specialized handling. Moreover, sourcing suitable vessels for LNG cargo can prove challenging given the substantial size of the components and delivery requirements.

Boasting a rich legacy as a trusted leader in the energy industry, one global company’s flexible solutions help remove harmful acid gas from liquified natural gas (LNG) streams and improve overall performance. They needed expertise to handle the project, which spanned 15 months, and required on average, one ocean charter each month. C.H. Robinson was their first choice after years of successfully working together in other capacities.

In total the project required 11 charters to be moved over 11,136 nautical miles per voyage. To meet the timeline for receiving cargo at the destination, loading at origin and vessel arrival at discharge port were carefully planned within the allotted timeframe.

From complexity to clarity: Ingenious supply chain solutions unleashed

Engaging global expertise from local people

The first step of the project move involved close collaboration between the C.H. Robinson team in North America and the C.H. Robinson office in Malaysia . Due to their local presence, it was easy for the Malaysia team to maintain direct communication with the component fabricator to confirm the cargo was prepared for transit.

The critical role of marine engineers

Early on, one of the C.H. Robinson in-house marine engineers contributed their expertise to the project. This turned out to be crucial for the success of the move. The added expertise from the C.H. Robinson marine engineer was eye opening. With his help, the energy company had fast, clear communication and was able to streamline project planning at various steps of the journey. Thanks to the proactive review of the ship owner’s and barge operator’s stow plans, they avoided unnecessary overruns to keep costs aligned with the original project budget.

Optimizing barge usage and negotiating pricing

The LNG components, all of which were oversized, first needed to move from the fabrication site in Malaysia to the Port Klang, which required the use of both trucks and river barges. This is where the C.H. Robinson marine engineer on staff proved a most valuable asset.

For one voyage in particular, after reviewing the barge layout the engineer determined cargo discharged from one vessel could be loaded onto one barge rather than on two barges as outlined by the barge operator. This was possible by more accurately maneuvering the layout of the cargo on the barge. This eliminated the expense of additional barge movements.

Other cost savings were achieved by leveraging existing C.H. Robinson relationships with vessel owners. Each shipment was reviewed and quoted by several carriers. Ultimately, all charters were executed with one shipowner due to vessel availability, which resulted in cost savings.

Coordinating unit placements and loading procedures

The shipper, the barge operator in Malaysia, the steamship operator, and the C.H. Robinson team in New Orleans, collaboratively crafted method statements for this project. These documents encompassed lifting, lashing, and rigging procedures to ensure correct positioning of the units during the move. Any misalignment could jeopardize the entire operation. Clear communication and adherence to these best practices were non-negotiable.

Overcoming canal congestion

For one of the charters, delays due to congestion at the Panama Canal threatened project timelines. Winning a coveted daily crossing slot via auction was a cost-effective alternative to rerouting freight via the Magellan Strait route—which would have been more expensive and required 30 additional days of transit. 

Exceeding expectations for a complicated project logistics move

Throughout the course of the project, the collaboration between the two companies yielded remarkable results, demonstrating the effectiveness of meticulous planning and proactive problem-solving. By implementing innovative strategies and maintaining a keen eye on detail, C.H. Robinson delivered exceptional outcomes:

• Proactively corrected loading of components: Using the established method statements, our onsite resources discovered and rectified some placement discrepancies before shipping, ensuring cargo safety was maintained throughout the journey.
• Reset projected cost expectations: In addition to providing competitive ocean and barge costs , C.H. Robinson facilitated consistency and negotiated more favorable rates based on higher freight volumes. 
• Delivered components on time: Over the course of 11 charters , a total of 362 breakbulk packages, weighing 39,945CBM/10,366MTS, C.H. Robinson delivered all items safely and on schedule to their destination in New Orleans while minimizing operational disruptions.

Overall, the success of this complex project exemplifies the power of collaboration and innovation. By leveraging expertise, creativity, and a client-centric approach, C.H. Robinson not only facilitated a smooth transition, but also set a benchmark for excellence in project management and logistics solutions.

With the ability to make real-time adjustments, the teams at C.H. Robinson demonstrated their ability to roll with the punches—no matter how the conditions changed over the course of the LNG project. It was their global expertise, local insights, and unwavering commitment that helped this project succeed.