Chinese automotive manufacturers are expanding their production operations into overseas markets, particularly Europe, to be nearer to their consumer base. This strategic shift is expected to generate continued growth in vehicle volumes for roll-on/roll-off (Ro/Ro) carriers.
However, this decentralization of production away from China will likely result in shorter average shipping distances for these carriers. Instead of long-haul routes from Asia to Europe, Ro/Ro vessels may increasingly serve intra-regional European routes or shorter feeder services from new manufacturing hubs.
For freight forwarders and logistics managers, this trend suggests a potential reconfiguration of automotive supply chains. While overall demand for vehicle transport remains strong, the nature of the demand will evolve. Forwarders might see an increase in requests for shorter-distance Ro/Ro services within Europe, potentially leading to changes in capacity allocation and pricing structures on these specific lanes. The shift could also influence the need for port infrastructure and inland distribution networks in destination regions.
