CAPACITY constraints on roll-on/roll-off vessels have induced automakers to resort to loading cars in containers, reports New York's Journal of Commerce.

US automakers are witnessing an influx of finished goods, mainly attributed to the alleviation of semiconductor shortages and a growing demand for electric vehicles.

Ro-ro carriers have commissioned newbuild vessels, accounting for 30 per cent of the existing fleet, with deliveries scheduled to commence in 2024.

However, these additions are primarily set to replace retiring tonnage rather than expand the overall fleet capacity, according to industry experts cited in the Journal of Commerce.

As an example, during the South Carolina International Trade Conference last week, Yusen Logistics vice president Steve Jurcenko revealed that their team, which typically handles imports of pallets and cartons, has observed a growing trend of finished cars being transported via container by a Japanese automotive customer.

Mr Jurcenko explained how they were now importing fully assembled cars into the west coast, with two cars per container, and then the car carrier would collect nine at a time.

The production of vehicles in Asia has seen a significant upswing this year. Japan, for instance, exported nearly 2.5 million vehicles in the first seven months of 2023, as reported by the Japan Automobile Manufacturers Association.

Vehicle exports from China, Japan, and South Korea are projected to increase 24 per cent year over year by the end of the year, totaling 13 million units, said Gram Car Carriers CEO George Wist, citing data from Global Trade Tracker during a recent online earnings briefing.

On the US front, the ports of Jacksonville and Savannah, alongside auto manufacturers General Motors and Volvo, have directly experienced the shift towards containerised car transportation.

Jaxport representative Chelsea Kavanagh mentioned that several hundred vehicles have been transported via containers through Jacksonville in recent months, albeit sporadically.

This situation evokes memories of the past few years when the shipping industry faced container shortages, leading original equipment manufacturers to utilise ro/ro ships wherever space was available to move their cargo.

"We would compare the trend to what we saw during the Covid crisis when some traditionally containerised cargo briefly transitioned to breakbulk due to global container equipment shortages," said Ms Kavanagh.