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Beyond RoRo: When is The Case for Containerized Car Shipping

Roll-on/Roll-off (RORO) shipping has been the backbone of finished vehicle logistics for decades. While it remains highly effective for larger OEMs and high-volume movement across established trade lanes, it falls short for those who need faster, more flexible distribution.

This is where containerized vehicle shipping, like APL Logistics’ AutoDirect, comes in as a complement to RORO, enabling better access to markets and solutions for lower-volume shippers that traditional RORO services often don’t efficiently serve.

Moving Past RORO Reach and Frequency Constraints

RORO vessel services operate on monthly sailing schedules that are ideal for predictable bulk shipping. However, their shipping lanes often underserve emerging markets, such as the Middle East, Africa, Latin America, and parts of Asia-Pacific markets, and service limited ports. They also rely on volume to be cost-effective, which can reduce interest in serving low-volume clients. Additionally, shippers and receivers must transport vehicles both to a RORO port and their final destination.

This leaves smaller and mid-sized OEMs, such as newer and low-volume manufacturers, unable to expand their market reach or stabilize their vehicle stock flow due to commercial impracticality. AutoDirect, which uses a containerized shipping model and standard FCL carriers, offers a solution that vastly expands available ports of delivery and allows manufacturers to ship smaller loads, more often.

Demand-Driven Shipping for Improved Cash Flow

Containerized vehicle shipping doesn’t just extend your reach and routes. It also supports more flexible distribution. You can move vehicles quicker, in smaller batches, to offer greater control over inventory holding and additional room to respond to market demands quickly.

For distributors in price-sensitive or fluctuating markets, this additional flexibility and working capital efficiency can be as important as the costs to transport.

Reduced Risk with End-to-End Protection

Given the large number of handling points between factory and dealer with traditional RORO, some damage to stock is near-inevitable. However, containerized transport with AutoDirect can bring these touch points down to as few as two, reducing the risk to the vehicles themselves.

Vehicles are securely loaded into certified steel racking systems at origin, and sealed within the container. This allows for more vehicles per container, reducing the cost per unit, and protects vehicles until they arrive at the dealer’s yard, reducing weather-exposure and the scope for handling errors and in-transit damage.

A Better Solution for Small OEMs and Dealers

When RORO falls short, containerized car shipping through AutoDirect offers an extension to global vehicle distribution, giving you reach, resilience, and above all control — especially for the small and mid-sized OEMs and dealers that RORO often neglects.

And if you’re in an underserved market? APL Logistics can develop any AutoDirect route you need, with a minimal 2 month setup time to build and train a local team. Reach out today to learn how you can reimagine vehicle logistics for faster, more geographically-diverse vehicle shipping across the globe.

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