This year, the AntwerpXL  conference will introduce an exciting new addition to its programme: dedicated sessions focusing on the Roll-on/Roll-off  and vehicle transportation sectors. Emphasising the challenges and emerging trends within the RoRo market, key sessions on the main deck will feature insightful discussions led by industry experts such as Isabelle Van Looy from Infrabel, Julie Desmet from Flows, Paul Hatley from Associated British Ports and Raza Mehdi from Toyota Motor Europe. These leaders will facilitate a roundtable on overcoming challenges in RoRo and vehicle transportation—a topic that is increasingly relevant amid growing global uncertainties.

AXL begins on 8th October 2024 with a tour of the Port of Antwerp-Bruges and the Katoen Natie multipurpose terminal renowned for its handling of breakbulk, steel, project cargo and RoRo activities. On 9th October, the conference officially commences, showcasing a packed and dynamic lineup of industry leaders and thought-provoking discussions. The event concludes on 10th October with another exciting new feature: the RoRo closing party, sponsored by Flows.

The Dynamics of RoRo Logistics

One critical insight is that the RoRo market is paradoxically poised between soaring freight rates and softening global demand for “high and heavy” RoRo cargo. Operators like Wallenius Wilhelmsen and Höegh Autoliners maintain a substantial share for high and heavy cargo in their overall volume mix. This showcases the unique nature of the RoRo sector, where market shifts don’t always translate directly into promotional changes in performance.

Going Forward Capacity Crunch and Market Shifts

Looking ahead, the market will continue to face significant capacity constraints throughout 2024 and beyond. A key factor in this capacity crunch is the COVID-19 pandemic’s lasting impact. During the height of the pandemic, the demand for personal vehicles sharply declined, resulting in overcapacity of RoRo vessels in 2020. Now, with consumers resuming vehicle purchases, the RoRo industry has been struggling to meet demand, especially for large machinery, construction equipment, and heavy vehicles. This imbalance pushes some cargo that would typically be shipped via RoRo vessels to other transport modes, such as containerised shipping or multipurpose vessels.

As New Vessel Capacity will slowly enter the market, the lack of capacity will slowly disappear.

Technological Advancements and the Future of Modelling

Looking beyond 2024, the industry will likely see increased investment in technology to help manage the complexities of RoRo Supply chain. Modelling and simulation software, when fully developed, will play a vital role in cost control and strategic planning. These tools will enable operators to understand the complexities of cargo movement better and find more efficient solutions for transporting RoRo, heavy and oversized cargoes.

RoRo Shipping: Regional and Global Trends

Driven by the surge in electric vehicle (EV) sales, particularly from China, demand for RoRo vessels has spiked. Chinese automakers are placing record orders for RoRo ships to meet the needs of international markets, making China a key player in the global RoRo landscape. This trend is further complicated by ongoing geopolitical issues, such as the Red Sea shipping routes, which have forced some vessels to divert via the Cape of Good Hope, adding delays and increasing costs.

At the Port of Antwerp-Bruges, industry dynamics are being closely monitored, particularly as there are strains on existing RoRo capacity. This needs to be taken in context as new RoRo vessels are set to be delivered in the coming years, which may alleviate some of this pressure. The port is leading by example, actively exploring new propulsion technologies while ensuring its own tug boats operate efficiently and sustainably. This commitment to reducing environmental impact aligns with the industry’s growing focus on sustainability.

The port of Antwerp-Bruges notes, “We can overcome challenging times only by close cooperation with all players active in the automotive Supply chain.”

The AXL 2024 conference will be a crucial opportunity for stakeholders in the RoRo and project logistics sectors to come together, share insights, and prepare for the challenges ahead. Capacity constraints, shifting market dynamics, political volatility, and the increasing demand for renewable energy will shape the RoRo market for years to come. As the industry continues to navigate these challenges, collaboration and innovation will be key to success in 2024 and beyond