RoRo Shortage Hits Car Trade

Monday, September 17, 2007
While the Chinese automotive sector is experiencing double-digit growth, Chinese finished vehicle exporters are facing stiff competition and ongoing logistics challenges in getting their products to foreign markets because of a lack of RoRo ships, according to a report on http://www.cargonewsasia.com. Zhang Xiaoyu, vice-chairman of the China Machinery Industry Federation said that while the number of China's vehicle exports has increased sharply, many of these cars lay in transit at ports because shipping companies simply do not have enough vessels to transport them. According to China Custom's figures, the mainland exported a total of 340,000 cars in 2006 - double that exported in 2005. This represents a small part of China's total automobile output in 2006 of 7.28 million vehicles, leaving plenty of room for growth. Along with the increase in vehicle exports, the number of companies exporting cars increased to 1,175 in 2006, according to a local auto market researcher, of which 160 companies exported only one vehicle each and 650 companies exported less than 10 vehicles each. Many of these are companies which handle exports for China car makers such as Great Wall, Geely and Chery. An ongoing issue for Chinese finished vehicle exports is the shortage of roll-on/roll off (ro/ro) ship capacity. "Because of the lack of ro-ro ships, we mostly rely on Japanese and Korean ships, but they come just once a month," said Gu Jian Li, vice-general manager for overseas markets of Great Wall Automotive. "They give us limited space, so most times we have to use container vessels, which are likely to cause damage. Also, for a similar distance, Japanese and Korean companies are charged $40-$50 per cubic metre, while Chinese companies need to pay $60-$70." Companies such as Leif Hoegh Shipping (China), a joint venture, and Chinese shipping companies, Cosco and China Shipping are all increasing capacity - eight new ro/ro ships are due for delivery in 2007 - but not fast enough. (Source: http://www.cargonewsasia.com)
Maritime Reporter January 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Marine Science

IMTRA LED For Vessel Control System Integration

IMTRA, the leading manufacturer and importer of quality marine products, through its integration-focused design philosophy, created its entire range of 2- and

Investment Impact in Inland Waterways System

The National Waterways Foundation (NWF) has commissioned and released a two-year, ground-breaking study by the University of Tennessee and the University of Kentucky,

Coast Guard Cutter William Trump Commissioned

The Coast Guard Cutter William Trump was commissioned during a ceremony at Coast Guard Sector Key West Saturday Jan. 24, 2015. The Trump is the 11th fast response cutter in the Coast Guard fleet.

RoRo

Wärtsilä to Power LNG-fueled RoPax Ferry

A ferry being built for Sweden’s Rederi AB Gotland will be fueled by LNG, featuring a Wärtsilä integrated solution which includes a complete LNG powered propulsion- and fuel storage and supply system,

A HERO on the Seas

The expansion of the Panama Canal has opened up an opportunity for WWL to develop its next generation RoRo carriers. Due to its importance to international trade,

Stricken Hoegh Osaka Ready for Transport

Hoegh Osaka’s list is now at 5 degrees, enabling salvors to turn the vessel in the correct direction and transport it from Alpha Anchorage to Southampton Port.

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1140 sec (9 req/sec)