The upcoming AntwerpXL (AXL) conference is set to introduce a fresh focus on the Roll-on/Roll-off (RoRo) and vehicle transportation sectors. This year’s event will spotlight challenges and emerging trends in the RoRo market, with industry experts such as Isabelle Van Looy (Infrabel), Julie Desmet (Flows), Paul Hatley (Associated British Ports), and Raza Mehdi (Toyota Motor Europe) leading key discussions. Together, they’ll address growing concerns around RoRo and vehicle transportation—an increasingly relevant issue in today’s uncertain global landscape.
AXL officially kicks off on October 8th, 2024, with a guided tour of the Port of Antwerp-Bruges, including a stop at the Katoen Natie terminal. Known for its diverse operations handling breakbulk, steel, project cargo, and RoRo activities, the terminal will give attendees a first-hand look at critical infrastructure. Following this, the main conference sessions begin on October 9th, with discussions running through October 10th, capped off by a closing party sponsored by Flows.
The Paradox of the RoRo Market
One standout observation in 2024 is the paradoxical state of the RoRo market. Despite rising freight rates, the demand for “high and heavy” RoRo cargo, such as large machinery and construction equipment, has softened. Companies like Wallenius Wilhelmsen and Höegh Autoliners continue to secure a large share of the RoRo market, but shifts in demand haven’t directly led to a boost in performance. This illustrates the RoRo market’s unique complexities, where changes in global demand do not always correlate with operational dynamics.
Capacity Challenges and Future Shifts
As the RoRo market moves forward, capacity remains a crucial issue. A lasting impact of the COVID-19 pandemic has been a continued imbalance between vessel availability and the revived demand for personal vehicles. During the pandemic, RoRo capacity surged as vehicle purchases plummeted. Now, as consumers return to the market, there’s a scramble to meet demand, particularly for large equipment and heavy vehicles. Some cargo typically transported via RoRo is being diverted to container ships or multipurpose vessels due to capacity shortfalls.
However, new vessels are gradually being added, and this should ease the situation as we look beyond 2024.
Technology and the Path Forward
In the future, technology will be central to improving the efficiency of RoRo supply chains. Investment in modelling and simulation software will help operators navigate the logistical challenges of moving heavy cargo. These tools could streamline operations and cut costs, giving operators more control over complex cargo movements.
Global Trends Shaping the RoRo Market
The rapid growth of electric vehicles (EVs), particularly from China, is reshaping the global RoRo market. Chinese automakers are placing record orders for RoRo vessels to export EVs to international markets. Meanwhile, geopolitical tensions, such as disruptions along the Red Sea shipping routes, are forcing some RoRo vessels to detour around the Cape of Good Hope, increasing both costs and delays.
At the Port of Antwerp-Bruges, these trends are being closely watched, with RoRo capacity already stretched thin. The port is actively looking into new propulsion technologies and is committed to reducing its environmental footprint, aligning with industry-wide efforts to embrace sustainability.
The AXL 2024 conference presents a vital opportunity for those involved in RoRo and project logistics to exchange insights and discuss solutions for the future. With ongoing capacity constraints, shifting market trends, and a growing emphasis on sustainability, the RoRo market faces both challenges and opportunities in the years ahead.
