Adapting to Ro-Ro Shortages: A Shift in China’s EV Export Logistics

Global ro-ro (roll-on/roll-off) vessel capacity remains constrained, particularly on key East Asia–Latin America routes. With new-build car carriers delayed and existing fleets prioritizing high-margin finished vehicles from Japan and Korea, Chinese electric vehicle (EV) exporters face mounting pressure to secure reliable ocean transport. Recent developments show a pragmatic pivot—not toward waiting for dedicated capacity, but toward operational flexibility.

Multipurpose Vessels Fill the Gap

A notable example emerged in mid-2024, when COSCO Shipping leveraged its fleet of multipurpose heavy-lift vessels to move BYD electric vehicles from China to Brazil. Unlike traditional pure car carriers, these vessels feature adjustable decks, reinforced hatches, and modular lashing systems—enabling safe stowage of EVs alongside project cargo or containers. While loading efficiency per voyage is lower than on purpose-built ro-ro ships, the solution offers faster scheduling and avoids multi-week wait times at congested ports like Shanghai or Yantian.

Brazil as a Strategic Corridor

Brazil has become one of China’s fastest-growing EV export destinations. Local import duties on fully built-up EVs were reduced from 35% to 0% under Mercosur’s temporary tariff suspension for electric mobility products—a policy extended through 2025. Combined with strong domestic demand for affordable EVs and supportive local financing schemes, the market has attracted over 12 Chinese brands since 2022. BYD alone exported more than 8,000 units to Brazil in Q1 2024, up 140% year-on-year.

Infrastructure Realities Beyond the Vessel

Maritime adaptation is only one part of the equation. Onshore, Chinese exporters are coordinating closely with Brazilian port authorities to streamline customs clearance for EVs—including pre-submission of battery certification (INMETRO), origin documentation, and local homologation support. Several SaaS platforms serving cross-border auto trade now offer integrated modules for tracking INMETRO approval timelines and managing Portuguese-language compliance labeling.

Broader Implications for Exporters

This shift signals a broader trend: standardization is giving way to route-specific optimization. Exporters targeting Africa or the Middle East may rely more on transshipment via Dubai or Singapore, while those serving Latin America increasingly use direct multipurpose sailings—often calling at multiple regional ports (e.g., Santos, Buenos Aires, Cartagena) to maximize load factors. Meanwhile, inland logistics in China are adjusting too: rail–sea intermodal options from Chongqing and Xi’an now include EV-dedicated container slots with climate-controlled monitoring.

What’s Next?

Industry observers note that while multipurpose solutions provide near-term relief, longer-term scalability depends on three factors: (1) availability of secondhand ro-ro tonnage entering the China–Latin America trade; (2) progress on bilateral technical agreements to harmonize EV safety and battery standards; and (3) growth in local assembly partnerships, which reduce reliance on finished-vehicle shipments altogether. Several Chinese OEMs are already exploring CKD (completely knocked down) kits for localized assembly in Brazil and Mexico—potentially reshaping the export model within 2–3 years.

Sources

  • News Cosco finds a way round car-carrier shortage to get BYDs to Brazil - The Loadstar — The Loadstar

(Disclaimer: Vehicle prices, import tariffs, and regulatory requirements referenced herein are subject to change. Actual costs and compliance obligations depend on shipment date, port of entry, vehicle specifications, and official guidance from relevant authorities.)