Prices for shipping containers have seen a significant decline since reaching their peak in October of last year, 2021. This price decrease is expected to have a notable impact on the export of used cars from Japan, particularly in terms of container shipments. In this blog post, we’ll explore the implications of reduced container prices on the export market and how it might influence the choice between container shipping and roll-on roll-off (roro) shipping methods.
1. The Effect of Decreased Container Prices:
The decline in container prices brings renewed opportunities for those who previously resorted to RORO shipping due to cost constraints. With container prices now more affordable, exporters can reconsider sending cars via containers, which may provide advantages in terms of security, protection, and ease of handling. This shift in preference from roro to container shipping could potentially alleviate some of the congestion on roro shipping lines.
2. Advantages of Used Car Container Export:
a. Enhanced Protection: Container shipping offers superior protection against external elements, such as weather conditions, dust, and other potential hazards during transit. This can be particularly beneficial for shipping high-value used cars or vehicles that require additional care.
b. Secure Transportation: Containers provide a higher level of security as they can be sealed and monitored throughout the shipping process, minimizing the risk of theft or damage.
c. Ease of Handling: Containers facilitate efficient loading and unloading procedures, enabling exporters to stack vehicles vertically, optimizing space utilization and reducing the risk of damage during transportation.
3. Considerations for Used Car Container Export:
a. Cost Factors: While the decrease in container prices is advantageous, it’s essential to evaluate the overall costs associated with container shipping. Consider expenses such as packing, loading, and unloading, as well as any additional fees or documentation requirements for containerized shipments. All up as the container freight prices come down the RORO prices are going up, so container shipping used cars is becoming a more important prospective in the future.
b. Quantity and Demand: The decision to use containers should also take into account the number of vehicles being exported and the demand in the destination market. If there is a substantial volume of cars to be shipped, containers can offer efficient and organized transportation. If the vehicles are on the smaller size, 4 sedan or 5 small hatchback vehicles per container and occasionally 6 small hatchback vehicles per container make the overall bill cheaper than RORO.
The decrease in container prices presents a favorable opportunity for exporters of used cars from Japan as well as importers in the target nations. The resurgence of container shipping as a viable option can bring benefits such as enhanced protection, secure transportation, and ease of handling. As exporters consider their shipping methods, evaluating cost factors, quantity, and demand will help determine the most suitable approach for their specific circumstances. By providing alternatives to roro shipping, the decrease in container prices may alleviate congestion and create more space on roro shipping lines, benefiting the overall export market.