<div class="phx-topic abstract-wrapper">Shippers that export vehicles to the United States from Mexico appear to be increasingly turning to do so by sea, and the new terminal at Lazaro Cardenas gives a new, specialist option to shippers that move vehicles in or out of the country.</div>

Shippers that export vehicles to the United States from Mexico appear to be increasingly turning to do so by sea, and the new terminal at Lazaro Cardenas gives a new, specialist option to shippers that move vehicles in or out of the country.

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<div class="phx-topic">The first two vessels arrived at the specialized $51 million roll-on, roll-off terminal at Mexico’s <a href="https://www.joc.com/port-news/international-ports/port-l%C3%A1zaro-c%C3%A1rdenas">Port of Lazaro Cardenas</a> this week, as the country’s auto exports continued to increase, rising by 12.1 percent in 2017 over 2016 amid signs that car exports are increasingly going by sea.The first vessel arrived at the Pacific Coast port Saturday and the second arrived Wednesday evening, and both are “K” Line ships on a route that will stop at the port every 20 days, said Manuel Fernandez, CEO of SSA Mexico, which operates the terminal.The second ship unloaded 1,049 vehicles — among them General Motors, Honda, Suzuki, and Toyota vehicles from Asia — and loaded 3,210 Mexican-made vehicles, among them General Motors light trucks, headed to the United States and Asia, Fernandez said.Mexico exported 507,068 vehicles in January and February, an 8.5 percent increase on the same period a year before, according to research by IHS Markit, the parent company of JOC.com. The country exported 3,102,604 cars in 2017, a 12.1 percent increase over 2016.The volume of vehicles exported through <a href="https://www.joc.com/geography/mexico">Mexico’s</a> ports increased by 27 percent in the first two months of 2018 — to 150,000 vehicles — over the same period in 2017, figures compiled by the Mexican Secretariat of Communication and Transportation (SCT) show. Vehicle imports increased by 18 percent, to 121,000, over the same period, the figures show.Fernandez predicted that the SSA’s Lazaro Cardenas terminal would handle between 450,000 and 480,000 cars in 2018, about the capacity of the first phase of the construction of the new terminal, which has the potential to further expand to 700,000 units with more construction.“The market is getting stronger than expected,” said Fernandez, adding that he believes one reason is a shift in the way Mexican-made cars are exported to North American countries.<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5252131_1.0.PNG"></img><a href="https://www.joc.com/s3/files/%2Fsites%2Fdefault%2Ffiles%2Fu1390826%2FMexico%20ro-ro%20traffic%202016%20and%202017_0.PNG">Click to enlarge</a></div>“In the past, they used to go by rail,” Fernandez said. “They didn’t use the port terminal. Now we are looking in the last month, last year, that the automotive industry is working on also exporting units to the United States and <a href="https://www.joc.com/geography/canada">Canada</a> by using the port terminals.”That comes as exports are taking a larger share of marine vehicle moves in Mexico. Vehicle exports accounted for 55.8 percent of the 1.83 million vehicles that passed through Mexican ports in 2017, up from 53.2 percent in 2016, the SCT figures show. Imports accounted for 44.2 percent of vehicles that passed through the Mexican ports in 2017, a decline from 46.8 percent the year before.The volume of cars passing through Mexican ports increased by 40 percent in 2017 compared with 2016, with exports increasing by 47 percent and imports increasing by 32.5 percent.<h2>Veracruz, Lazaro Cardenas — dominant in Mexico's vehicle cargo</h2>More than 80 percent of the vehicle cargo handled by Mexican ports in 2017 went through Lazaro Cardenas and the Port of Veracruz on the Gulf Coast, according to SCT figures. The volume of automobiles handled by Lazaro Cardenas increased by 42 percent in 2017, to 443,000 vehicles, over the year before, with exports accounting for about 37 percent of the total, the figures show.The number through Veracruz increased by 34 percent over the year before, to 1.03 million vehicles, of which exports accounted for about half.The opening of the Lazaro Cardenas auto terminal comes as talks continue over the future of the North American Free Trade agreement, the outcome of which could potentially have a big impact on the Mexican auto manufacturing industry.<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5252135_1.0.PNG"></img><a href="https://www.joc.com/s3/files/%2Fsites%2Fdefault%2Ffiles%2Fu1390826%2Fmexico%20roro%20port%20market%20share.PNG">Click to enlarge</a></div>The Lazaro Cardenas facility is part of SSA’s $560 million investment in five Mexican ports, an effort that coincided with Mexico’s effort to upgrade its port system in line with an April 2015 government pledge to invest $5 billion in its network of 117 ports. The government initially expected the investment to be public money but have since said much of it will be private investment.The government made the pledge in part to meet the needs of the country’s rapidly growing manufacturing sector — especially car makers. More than a dozen auto plants are now dotted around the country, including Ford, Chrysler, Fiat, and General Motors plants around Mexico City. Vehicle production in Mexico increased in the first two months of 2018 to 632,107, a 6.2 percent jump from the same period in 2016, according to figures compiled by the Mexican Automotive Industry Association.Stephanie Brinley, senior analyst in the automotive department of IHS Markit, said a considerable chunk of the exports are probably going to Europe as Mexico is a global source for the Audi Q5, and BMW and Mercedes-Benz have a strong presence there.“Early 2018 results portend continued export growth,” according to an IHS Markit industry analysis released two weeks ago, with February sales and export figures. “Mexico's largest export markets continue to be the United States and Canada; those two countries received 78.9 percent.“However, European countries are seeing greater exports, particularly <a href="https://www.joc.com/geography/germany">Germany,</a>” the analysis said. “Germany remains third, but its participation in the export market increased to 6.3 percent in February 2018, compared with 3.2 percent in January 2018.”Contact Hugh R. Morley at <a href="mailto:Hugh.Morley@ihsmarkit.com">hugh.morley@ihsmarkit.com</a> and follow him on Twitter: <a href="https://twitter.com/hughrmorley_joc">@HughRMorley_JOC</a>.</div>

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SSA opens Mexico ro-ro terminal amid vehicle export surge

<div class="phx-topic abstract-wrapper">Rising cargo volumes deliver increasing profits despite the fragile economic situation in the European market.</div>

Rising cargo volumes deliver increasing profits despite the fragile economic situation in the European market.

<div class="phx-topic">The roll-on, roll-off shipping business is riding a wave, with rising cargo volumes delivering increasing profits despite the fragile economic situation in its core European market.The industry took “a big step forward” in 2016, building on the previous 12 months of stabilization and recovery, according to Paris-based ship broker and consulting firm Barry Rogliano Salles (BRS). “On the back of healthy cargo flows, controlled operational costs and encouraging supply-demand equilibrium, the industry continued its upward trajectory, leading to a new cycle of investment, which might shape the ro-ro sector horizon for years to come,” it said.The situation, however, is getting bleaker in the sibling car carrier business, which was plagued by persistent low cargo volumes that weakened demand for capacity last year. The situation is especially dire in emerging markets that rely most on ships to delivery their vehicles, and where auto sales have been particularly weak.Car carriers “struggled to fill up their ships and engaged in a zero-sum game to secure cargo, slashing freight rates,” BRS said.Global seaborne vehicle shipments declined by an estimated 4 percent, to 19.2 million units in 2016, according to Clarksons Research.As the conventional market slows, cargo-hungry car carriers are expanding their reach, targeting the breakbulk market with new ships boasting large stowage space and ramps that can support heavy and oversize cargoes weighing up to 500 metric tons.It’s a different picture in the ro-ro heartland of northern Europe and the Baltic, where traffic is growing and carriers are adding capacity. An exception is Russia, which is dealing with European sanctions for its annexation of Crimea and by disputes with Poland over truck transit regulations that have forced operators to seek alternative routes.The healthy state of the North European ro-ro market is reflected in the strong financial results of the leading carriers in the trade, which contrast sharply with the heavy losses and shrinking profits posted by the region’s top deep-sea container carriers Maersk Line and Hapag-Lloyd.Helsinki-based Finnlines, whose 21-ship fleet makes it the largest Baltic operator, posted a record profit of 68.1 million euros ($72.2 million) in 2016, up 20 percent from the previous year and the fourth consecutive annual increase. Grimaldi, the Italian owner of Finnlines, linked the growth to the successful implementation of a 1 billion-euro capital expenditure program over the past decade and to rapid reaction to market conditions.Operating profit at DFDS, the Danish shipping, logistics, and trucking group that operates a fleet of 55 vessels on North Sea, Baltic, and English Channel routes, soared 37 percent to 1.6 billion kroner ($230 million) last year, largely because of surging cargo volumes and higher freight rates.The Mediterranean is enjoying mixed fortunes, with routes from Turkey to Italy and France and the domestic Greek and Spanish ro-ro markets experiencing solid growth, while North African volumes are falling because of low demand and regional conflicts that have resulted in limited shipments to Libya and Syria, which are served by charter carriers.Tension over Russia’s takeover of Crimea and the sometimes-strained relationship between Moscow and Ankara impacted Black Sea ro-ro services, which are largely dependent on the vegetable and fruit trade. October’s partial lifting of Russia’s ban on selected Turkish products, however, enabled operators to reactivate their fleets.Grimaldi’s announcement last year that it was ordering four of the industry’s biggest vessels, with options for more, underscores the industry’s positive outlook. Grimaldi’s Atlantic Container Line is doubling its trans-Atlantic capacity with the introduction of five of the world’s largest container/ro-ro ships.<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5252853_1.0.jpg"></img></div>There are some troubled markets, however. In West Africa, for example, tumbling oil and commodity prices have sapped the region’s purchasing power, resulting in the withdrawal of services. Amid mounting losses and depressed cargo demand, Weco Roro — the former Nordana Line — canceled its monthly Mediterranean-Americas ro-ro/breakbulk service in February after 60 years. MNM Shipping last year ended its service between the western Mediterranean and West Africa after barely a year.One of the biggest challenges facing carriers and ports is the uncertainty surrounding the UK’s looming exit from the European Union in March 2019. The United Kingdom is staring at a “catastrophe” if it doesn’t create a “frictionless and seamless” border at Dover and other ports, according to the UK Chamber of Shipping. “The nightmare scenario is actually having customs borders … it would be absolutely a catastrophe for the ports and for our sector,” CEO Guy Platten said. “You’ve suddenly got lorries [trucks] stacked up, you’ve got sailings canceled. The whole supply chain is completely affected.”Truckers and forwarders warn that Dover faces a 30-mile gridlock if customs checks are reintroduced in the wake of Brexit. Dover is one of Europe’s top ro-ro ports, handling some 60 cross-channel services a day that carried approximately 2.6 million trucks in 2016 loaded with products, many of them just-in time consignments. These shipments were valued at 119 billion pounds ($152 billion), accounting for 17 percent of the nation’s trade in goods.Increasing the threat of congestion is the nearby Eurotunnel rail shuttle, which transported some 1.6 million trucks last year. Dover’s aim, according to CEO Tim Waggott, is to achieve “post-Brexit fluidity” that would avoid trucks having to queue up on approach roads to the port.European ro-ro ports that handle the bulk of the UK’s short-sea trade, including Calais, Dublin, Zeebrugge, and Rotterdam, also face congestion unless London and Brussels can agree on a way to reduce customs checks when Brexit takes effect in two years.But for now, the overall outlook remains relatively rosy, with BRS expecting strong cargo flows to persist throughout 2017 in mainland Europe, the Baltic, and the Mediterranean, with the exception of trades to the United Kingdom. “As a result, we expect most operators to continue adding capacity to accommodate the expected growth. We believe the sector will still lack capacity during 2017, but things may change in 2018 with the arrival of newbuilding tonnage and the ensuing reshuffling of the existing fleet,” BRS said in a recent report.So far, Brexit hasn’t impacted routes from the European mainland. The port of Rotterdam said the United Kingdom played a role in the 6.5 percent rise in its first-quarter ro-ro traffic, to 5.7 million metric tons, driven by the launch of new services.The ro-ro sector’s problems are manageable compared to the challenges facing car carriers, where “survival was the name of the game for owners and operators alike … and there were very few policy options in order to do so,” according to BRS.There have been moves to consolidate the sector, however, with Norway’s Hoegh Autoliners’ takeover of Panama-based SC Line’s operations and China Merchants Group’s acquisition of Sinotrans and CSC Holdings. This year brought the merger of Wallenius Wilhelmsen Logistics, Eukor Car Carriers, and American RoRo Carriers, which are jointly owned by Oslo-based Wilh. Wilhelmsen and Sweden’s Wallenius Lines.The merged Wallenius Wilhelmsen Logistics company, which began trading on the Oslo Stock Exchange on April 5 with a value of about $2 billion, expects to reap annual synergies of up to $100 million and is confident it will become the market leader, operating on 15 intercontinental trade routes serving vehicle, construction and mining equipment manufacturers.“The new company will facilitate an improved growth path for the land-based logistics offer, where we expect investments and development of new products and services, as well as a sound foundation for offering tomorrow’s deep-sea transportation services to global car and ro-ro manufacturers,” said Jan Eyvin Wang, Wilh Wilhelmsen’s president and CEO.<div class="wrapper-narrow float-right-element"><img src="/images/phoenix/5252858_1.0.jpg"></img></div>New light vehicle sales likely will be flat, up perhaps 0.5 percent this year, according to Hoegh Autoliners. It expects demand to flatten in the US and western Europe, and remain depressed in Japan and South Korea, while sales in China, the world’s largest automotive market, are set to slow despite Beijing’s continued subsidies for certain car types to support the market.Growth in Chinese sales plunged to just 1.7 percent in March — to 2.1 million units — as a result of higher taxes, compared with a 6.3 percent increase in the first two months of the year and nearly 10 percent year-over-year rise in March 2016.India’s sales will continue to feel the negative impact of the government’s demonetization program, but overall South Asian demand is expected to recover through the year. The Association of Southeast Asian Nations will see accelerating demand, Brazil and Russia will start their recovery, and the Middle East and Africa markets will stabilize.Meanwhile, transportation markets for high-and-heavy cargoes are starting to show signs of recovery, driven by rising commodity prices, hopes for increased construction spending in the United States, and steady infrastructure investment in emerging countries, supported by China’s One Belt One Road project. On the negative side, higher debt levels and increasing interest rates in many countries are affecting public projects, with a glut of used machinery yet to find work, Hoegh Autoliers reports.The rise in crude oil prices triggered by OPEC production cuts could boost the purchasing power of oil-producing nations, but the impact is unlikely to be felt before the end of 2017, which “might be too late for some of the sector’s players,” according to BRS.While the industry juggles with caveat-filled forecasts, it also faces two unknowns that could significantly impact its bottom line. First, there’s uncertainty over whether President Trump will carry through his threat to impose import tariffs if Germany doesn’t reduce its bulging trade surplus with the United States. Any tariffs would hit Germany’s export-oriented auto industry.The Trump administration’s talk of penalizing companies that manufacture vehicles abroad and export them to the United States rather than building them in US plants also is causing unease among car carriers. “The world situation has not become any clearer. Rather, tensions are tending to increase; possible trade barriers are a daily subject of discussion. It’s not getting any easier to make prognoses,” said Frank Dreeke, CEO of Bremen-based BLG Logistics.BLG handles more than 7 million vehicles a year across Europe, the Americas, Africa, and Asia, making it one of the world’s largest automotive logistics companies. Operating results at BLG’s auto division dipped in the first quarter, largely because of lower volumes at its flagship Bremerhaven Auto Terminal.“We see a substantial increase in geopolitical and protectionist risks on the horizon which cannot be easily dismissed and which we fear will contribute to creating the conditions for another tough year ahead for the sector,” BRS cautioned.Car carriers share that outlook. Forecasts are “highly unpredictable” in an “extremely political and turbulent” 2017, said Teresa Lehovd, head of market intelligence at Hoegh Autoliners.A second worry for carriers centers on the ongoing antitrust investigations into price-fixing. Competition regulators or courts in several countries, including the US, Australia, China, and South Africa, have slapped fines on the leading carriers, including Wallenius Wilhelmsen, Eukor Car Carriers, and Japan’s Big 3 carriers: NYK Line, “K” Line, and MOL. The industry is bracing for further convictions and penalties and the launch of new investigations this year.All that said, the industry isn’t trapped in the overcapacity crisis hitting other shipping sectors, particularly containers and bulk carriers. The pure car-truck carrier fleet “is rebalancing as owners are removing an increasing number of old, inefficient vessels from the world fleet and cascading the smaller deep-sea tonnage to regional trades,” Hoegh Autoliners noted.For now, the ro-ro sector appears heading for further growth, while the car carrier industry faces a slowdown. But all that could change if populist protectionist and anti-globalization policies turn from risk to reality in the months ahead.Contact Bruce Barnard at <a href="mailto:brucebarnard47@hotmail.com">brucebarnard47@hotmail.com</a>. </div>

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Overall ro-ro shipping market basking in glow of growth

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At SSA Marine Mexico, we firmly believe that business development must go hand in hand with social and environmental well-being. Our vision is not solely focused on operating efficiently, but also on creating a meaningful and positive impact in the communities where we are present. Since 1995, we have reaffirmed this commitment through tangible actions that reflect our core values of responsibility, solidarity, and sustainability. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584535914_Photo%201.jpg" alt="" class="joc_admin__inline-image-inherit"> A Year of Major Achievements Over the past year, we allocated more than $107,000 USD to the implementation of 60 social and environmental projects, positively impacting over 7,800 people across various regions of Mexico. Each initiative was designed with a holistic approach, addressing key areas that contribute to long-term community development. Education: Laying the Foundation for the Future Education is one of the most powerful tools to promote social mobility and equitable development. At SSA Marine Mexico, we support academic initiatives that inspire and empower the next generation of leaders. One of our most impactful partnerships was with the University of Colima, where we sponsored the “Reto Camp” program. This initiative encourages university students to develop innovative solutions in the fields of sustainability, logistics, and port operations, offering them mentorship, tools, and real-world challenges to solve. In addition, we donated microscopes, school supplies, and educational materials to institutions in underserved communities, helping to improve the learning environment and provide students with the resources they need to succeed. Health and Sports: Promoting Wellness We believe that healthy communities are strong communities. We have supported several local sporting events and provided direct assistance to talented athletes, enabling them to pursue their passions and represent their regions with pride. Beyond sports, we also strengthened our collaboration with critical emergency response organizations such as the Mexican Red Cross and Civil Protection. Our contributions helped enhance their readiness and capabilities in times of crisis, ensuring better outcomes for those affected by emergencies. Supporting Vulnerable Groups: Reaching Those Who Need It Most A core part of our social responsibility efforts is directed toward supporting vulnerable populations. We have contributed to a range of initiatives focused on children, migrants, and at-risk families. These efforts included donations to orphanages and shelters, as well as support for the National Institute of Migration and grassroots organizations dedicated to protecting and empowering people facing adversity. By standing with those in need, we reinforce our commitment to inclusion and social justice, values that are central to our identity as a responsible company. <span class="joc_admin__inline-image joc_admin__inline-image-aspect-ratio-3_2 joc_admin__inline-image-position-left joc_admin__inline-image-size-medium" data-figure-size="medium" data-figure-position="left" data-figure-aspect-ratio="3:2"><img src="/content-assets/1752584944645_Photo%202.png" alt="" class="joc_admin__inline-image-inherit">Culture: Strengthening Community Identity Cultural identity is a key element in building resilient and united communities. At SSA Marine Mexico, we actively participate in the organization and sponsorship of cultural events that celebrate local traditions and foster civic pride. Working alongside port authorities and municipal governments, we helped bring music, art, and heritage to the forefront, creating spaces for community engagement and intercultural dialogue. Environment: Investing in the Planet Our commitment to sustainability goes beyond operations—it’s a philosophy that drives every decision we make. We have partnered with environmental institutions to carry out reforestation campaigns, beach cleanups, and conservation efforts. In collaboration with the Institute for the Environment, we supported initiatives aimed at decarbonization, biodiversity protection, and environmental education. By involving our employees and local volunteers in these actions, we also foster a culture of environmental stewardship throughout our organization and our surrounding communities. Innovation for a Sustainable Future Sustainability is not just about doing good—it’s also about doing things better. In 2024, we invested $22 million USD in the acquisition of 11 state-of-the-art E-RTG cranes. These electric rubber-tired gantry cranes represent a significant technological advancement in port equipment. Seven of them are already operating on clean electric energy, resulting in a reduction of nearly 4,000 tons of CO₂ emissions and improving operational efficiency by 7%. The remaining four cranes are fully compatible with future electrification, underscoring our long-term strategy to modernize our operations in an environmentally responsible way. This investment is part of a broader innovation roadmap that includes digitalization, automation, and cleaner energy sources—all designed to ensure that our ports continue to grow without compromising the health of our planet. Building a Better Tomorrow, Together At SSA Marine Mexico, we understand that sustainability is a shared and ongoing responsibility. True impact requires collaboration across sectors, long-term vision, and unwavering commitment. That is why we continue to work hand-in-hand with local authorities, non-profit organizations, universities, and our own employees to create solutions that are both scalable and sustainable. Our journey is far from over. In the years ahead, we will continue to deepen our community engagement, explore cleaner technologies, and strengthen the social fabric of the regions where we operate. Each initiative, no matter the size, is a step toward building a future where business success goes hand-in-hand with human and environmental prosperity. We are proud of what we have achieved in 2024, but we are even more excited about what lies ahead. SSA Marine Mexico — Moving the World, Caring for People and Planet. LINK: https://www.ssamarine.mx/

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SSA opens Mexico ro-ro terminal amid vehicle export surge

Overall ro-ro shipping market basking in glow of growth