Shipping
CEVA LOGISTICS TO OPERATE RORO VESSELS FOR AUTOMOTIVE TRANSPORT
May 3, 2023

CEVA Logistics announced that it is set to operate four, deep-sea, dual-fuel hybrid roll-on, roll-off (RORO) vessels under a long-term lease.

 

The RORO ships are currently under construction by China Merchants Jinling Shipyard (Weihai), with the first vessel expected to be delivered in December and the three subsequent ships coming in 2024.

 

Under the lease agreement, CEVA Logistics noted that it will manage and operate the vessels with full commercial control over the RORO capacity.

 

"CEVA Logistics is connecting its global automotive customers with more roll-on, roll-off (RORO) vessel capacity thanks to a new 10-year lease the logistics firm has signed with its parent company, CMA CGM," it said in a statement.

 

"The agreement for four of Eastern Pacific Shipping's LNG dual-fuel hybrid deep-sea vessels will allow CEVA to transport approximately 140,000 vehicles annually between global markets, especially China and Europe," it added.

 

CEVA noted that at nearly 200 meters in length, the vessels will each have the capacity to transport 7,000 cars thanks to nearly 59,000 square meters of effective deck surface spread across 12 levels. With a width of 38 meters, the ships will have a gross tonnage of 72,000 tons and move at a max speed of 19.5 knots.

 

The RORO vessels' hybrid power systems will include both LNG and electric battery capabilities.

 

End-to-end network for finished vehicles

 

CEVA said the new vessels will enable CEVA to offer its owned, controlled capacity to automotive customers and provide a suite of flexible shipping options and end-to-end services. 

 

CEVA added that it will offer door-to-door solutions, able to take delivery of finished vehicles directly from manufacturing facilities and then manage transport to final destinations around the world through its network of port connections, RORO capacity, car hauliers and vehicle depots.

 

"CEVA is also strengthening its Cars in Containers solution to offer a more flexible option for shippers that need to transport small quantities of finished vehicles to strategic ports or in-land locations not easily served by its own RORO vessels or other carrier partners," the logistics company said, noting that with lower shipping rates and limited RORO capacity, carmakers can take advantage of this solution for reduced lead times and increased flexibility in terms of shipping schedules.

 

It added that as ocean shipping rates are expected to remain lower than in previous years, the solution offers carmakers another alternative to transporting finished vehicles around the world.

 

Finished vehicle volumes rebounding, EVs on the rise

 

In its announcement, CEVA said global new light vehicle sales are expected to reach nearly 83.6 million units in 2023, a 5.6% increase year-over-year, citing a recent forecast by S&P Global Mobility.

 

With global 2022 production up approximately 6.0% over 2021 levels, estimates place 2023 production at 85 million units for a 4% increase from 2022. It also said that 13% of 2022 car sales would be electric, a number expected to reach 13.3% in 2023.

 

"With the European Fit for 55 plan, China's EV policy and the U.S. Inflation Reduction Act’s tax credit, EVs are being more widely integrated into public policy, encouraging further growth in the segment," CEVA Logistics said.

 

In operating and commercializing the new vessels, CEVA Logistics noted that it will benefit from the CMA CGM Group's newly formed department dedicated to speciality maritime shipping, including vehicle transport on car carriers; the acquisition of ro-ro cargo and passenger operator, La Méridionale; and the future capacity of Neoline, the first wind-powered RORO vessel, which the Group is helping to finance.

 

"The decision to operate four deep-sea ROROs is a clear example of our promise of responsive logistics. With such a large need for additional capacity, we found a solution that allows us to co-create long-term value with our customers in the global economy by improving the go-to-market conditions for their finished vehicles," said Emmanuel Cheremetinski, global FVL leader, CEVA Logistics.