NEWS BLOG

High shipping costs are not the only consequence of the Covid-19 pandemic. The cost of consumables and construction materials has also soared, with prices of wood, in particular, reaching exorbitant levels. Since the start of the pandemic, wood prices have skyrocketed – with some metrics suggesting increases of up to 700% - in part because disruption to supply chains has meant a significant shortfall in available resources.

Container shipping for cars is an attractive alternative to RoRo because it reduces the amount of handling and transfers needed throughout a journey. Container shipping costs are therefore lower in terms of damaged stock. However, shipping containers come with a serious capacity issue – they can only transport two or maybe three vehicles at a time. This can add up to higher per unit costs compared with RoRo, which is why container shipping isn’t extensively used in automotive logistics.

It goes without saying that Trans-Rak steel framed car racking systems for containerised transport are the starting point for safe, secure and efficient transport. Although the great benefit of using the Trans-Rak system is optimising the payload within shipping containers, this is not the priority when loading vehicles. 

Global events in 2020 created the perfect storm in the shipping industry, leading to rocketing costs in excess of 350%, as lockdowns crippled international trade, demand for goods from the Far East soared, and the Evergreen incident in the Suez Canal caused months of delays. With the cost of container shipping still high, businesses that need to ship cars overseas face financial meltdown if they can’t find a more cost-effective solution that maximises their use of container space.

On the surface, the Brexit deal did not impose any additional tariffs on trading vehicles between Britain and the EU, which was of great relief to all in the automobile industry. However, on closer inspection, strict Rules of Origin requirements (RoO) impose worrying barriers to trade that may have serious repercussions on the vehicle market.

The Association of South East Asian Nations (ASEAN) is a large economic bloc comprising 10 member states in Southeast Asia. The members – which include Thailand, Vietnam, Singapore, the Philippines, Myanmar, Malaysia, Indonesia, Laos, Brunei, and Cambodia – all have in common a shared coastline in the South Pacific or South China Sea. The shipping lanes that run between the thousands of small islands in the bloc are strongly dominated by container ships, and the ASEAN region encompasses some of the most important trade routes in the world for international car transportation.

Consumers are becoming increasingly concerned about the carbon footprints of their supply chains. This is a challenge for car manufacturers and sellers, as vehicle manufacturing is a truly global enterprise. Shipping is one of the biggest global contributors to CO² and NO² emissions. Is there a way of transporting a fleet of cars responsibly?

Are you an entrepreneur considering overseas car trading as a venture? Cars can be big business. The UK in particular has a rich transport heritage, with a strong market in the USA, Europe, India, and Asia. Whether the aim is to ship classic vehicles, top-end models, or everyday transport, these trade routes are bursting with opportunities.

Transporting classic and luxury cars across oceans is fraught with risks. The thought of their pride and joy being manhandled into containers or revved on and off a ship's loading ramp is enough to raise the blood pressure of any classic car purchaser or dealership. Meanwhile, car buyers are desperate for reassurance that their expensive new purchase will arrive unscathed.

In short, the answer is no, you cannot reduce costs by transporting vehicles by air. While the cost of shipping has risen significantly due to Covid and other factors, many car transporters are considering different options, including air freight.