RORO shipping crunch time ..

For a year now the cost of container shipping from Japan has skyrocketed, as has world wide prices.  Luckily until now that hasn’t had as much of an impact on RORO shipping out of Japan.  However, finally luck has run out, and the knock on effect of the container shipping as well as a few other factors have now hit RORO shipping out of Japan.

Used car exporters who have specialized in container shipping have moved their stock over to RORO shipping.  Add to this increase in demand from expoters to use RORO over container shipping, port slow-downs due to Covid-19 reduced staff at ports, have reduced the speed at which ships can be processed at ports, which has reduced the total monthly turnover of these RORO ships.  All this has put huge pressure on RORO shipping to the point now the shipping yards are crammed full waiting for ever decreasing space on boats.  This is resulting in delays after purchase for exporting out of Japan.  We do not see a quick solution to this problem until the price of container shipping goes down.  

Auction grades and a grain of salt

But it was a grade 4, it shouldn’t look like that!  As humans we like to generalize, simplify and put everything into a box.  A grade 4 should be excellent whether bought at a USS auction, JU auction, Honda auction or TAA  auction.  Unfortunately, grouping all auctions together under a single umbrella is not a good idea.  Just as assuming Japanese and Koreans and Chinese and Thais and Malaysians are all asian, so the same. Easier to generalize and put everyone into the same box.  Well just as all asians are extremely different so are the auctions.  Just because USS Shikoku gives a grade 4 doesn’t make it better than Honda Osaka grade 3 (it could be worse!).  Auctions have a reputation for differing degrees of strictness … so what can you do?

Look at the map!  The map will tell you a lot more than the grade will.  Auction inspectors spend around 20 minutes per car carefully detailing every dent and every scratch.  You don’t need level 1 ability in the Japanese Language Proficiency test to read a map. 

So yes, grade 4 with a grain of salt!  Read the map and get off the grade train!