Through a newly signed 10-year lease with its parent company, CMA CGM, CEVA Logistics is expanding its network of roll-on, roll-off (RORO) vessel capacity, creating enhanced connections for its global automotive customers, as published in Transport & Logistics.
LNG dual-fuel hybrid RORO vessels
CEVA Logistics has signed an agreement to operate four LNG dual-fuel hybrid RORO vessels for Eastern Pacific Shipping. These ships, currently being constructed by China Merchants Jinling Shipyard, will enable CEVA to transport around 140,000 vehicles annually between global markets, particularly China and Europe. The first vessel is expected to be delivered in December, with the remaining three ships to follow in 2024. CEVA Logistics will have full commercial control over the RORO capacity and will manage the vessels. Each vessel will be approximately 200 meters long and capable of transporting 7,000 cars across 12 levels. With a width of 38 meters and a gross tonnage of 72,000 tons, the ships will have a maximum speed of 19.5 knots. The hybrid power systems of the RORO vessels will utilize both LNG and electric battery capabilities.
End-to-end network for finished vehicles
With the addition of the new vessels, CEVA Logistics will expand its capabilities and provide automotive customers with owned and controlled capacity, offering a wide range of customizable shipping options and comprehensive services. CEVA will deliver end-to-end solutions, seamlessly handling the transportation of finished vehicles from manufacturing plants to various global destinations. Through its extensive network of port connections, RORO capacity, car hauliers, and vehicle depots, CEVA will ensure efficient door-to-door delivery for its customers.
Cars in Containers Solution for smaller volumes, more direct access
CEVA Logistics is enhancing its Cars in Containers offering, providing a flexible solution for shippers requiring transportation of smaller quantities of finished vehicles to strategic ports or inland locations that may not be easily accessible by CEVA’s RORO vessels or other carriers. This solution offers reduced lead times and increased flexibility in shipping schedules, taking advantage of lower shipping rates and limited RORO capacity. CEVA’s global network and specialized capabilities streamline the container loading and unloading process, which can be time-consuming and labour-intensive for shippers. As ocean shipping rates remain favourable, the Cars in Containers solution presents an alternative for global carmakers to transport finished vehicles worldwide. Additionally, CEVA supports automotive manufacturers and parts suppliers with various logistics solutions, encompassing inbound manufacturing and aftermarket services.
Finished vehicle volumes rebounding, EVs on the rise
Global new light vehicle sales are projected to rise by 5.6% in 2023, reaching nearly 83.6 million units, as stated by S&P Global Mobility. Production levels are estimated to increase by 4% to 85 million units in 2023, following a 6% growth in 2022. However, industry estimates suggest that pre-pandemic production levels may not be reached until 2024 or 2025. China’s vehicle exports saw a significant increase of 54.4% in 2022, with 3.1 million vehicles exported. The adoption of electric vehicles (EVs) is on the rise, with the International Energy Agency predicting that EV sales will account for 13.3% of total car sales in 2023, driven by initiatives such as the European Fit for 55 plan, China’s EV policy, and the U.S. Inflation Reduction Act’s tax credit, which integrate EVs into public policies and foster further growth in the segment.
Supporting expertise from CMA CGM Group
- In operating and commercializing the new vessels, CEVA Logistics will benefit from the expertise of the CMA CGM Group’s newly formed department dedicated to speciality maritime shipping, including:
- vehicle transport on car carriers
- La Méridionale, a maritime shipping company operating ro-ro cargo and passenger ships (Ro-Pax), is currently being acquired by CMA CGM (subject to approval by regulatory authorities)
- the Group’s investment in Brittany Ferries, in which CMA CGM invested €25 million in 2021 to support its recovery
- the future capacity of Neoline, the first wind-powered RORO vessel, which the Group is helping to finance
Emmanuel Cheremetinski, global FVL leader, CEVA Logistics, said: “As the automotive supply chain continues to stabilize from numerous shocks over the past several years, we have remained close to our customers to understand their challenges and growth opportunities.”
“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.”
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Source: Transport & Logistics
