Two international freight forwarders, Auto Exporters Services (AES) and World Class Shipping (WCS), specialize in the export of vehicles from the US. In an interview with the AJOT, the forwarders share the many nuances of the business of putting wheels on the ground.By George Lauriat, AJOT In the US, exporting vehicles is a big, and getting bigger, business. Back in 2010, exports hit 1.4 million units, not bad considering how badly mauled the auto manufacturing sector was during the recession. While the shipping of new vehicles captures the headlines, the export of second-hand vehicles is big business with more nuances than a golf ball has dimples. In recent years, secondhand vehicle exports to West Africa, primarily from the US East Coast, has made Lagos, Nigeria a regular call for ro ro services. Nigeria currently ranks 7th as a destination for US exported vehicles, a majority being pre-owned. New Jersey-based Auto Export Services (AES) has been providing services to West Africa and specializes in vehicle moves. Jay Rice explained to the AJOT that AES has been servicing the West African market for over a decade, predominantly with ro ro services (NYK, MOL, Hoegh Autoliners, ACL, Eukor and WWL count among the carriers). Considering the number of vehicles being shipped, the AJOT asked whether the demand was local or as a transshipment hub for wider distribution on the African continent? Rice said, “Vehicles shipped to Lagos [Nigeria] tend to stay there. It’s the major city, and there are a growing number of consumers. There are shipments to Benin, Senegal and Ivory Coast, but it is really for local use.” Rice added, that in addition to the US exports, European nations also export vehicles to the West African market. Part of the reason for the demand is that Lagos has the largest and most extensive road system in West Africa, and oil exports have bolstered a rising middle class that craves autos. “It’s a pretty good time right now in Nigeria,” Rice noted but “availability of used cars swings back and forth.” Estimates vary, but 165 million units over the next decade doesn’t seem out of reach. It is a wild and wooly business environment in West Africa. The used car market is very price sensitive with wafer thin margins for sellers and stories of taking off the wheels and cramming six used cars into a box to max out profit abound. There are also many cases of shipments of stolen vehicles to the region. Yet it is still a land of great opportunity. Alex Meza, also with AES, offered a world-view on the auto export business. “The emerging markets will continue to grow,” but there are complexities. For example, “the South African market’s not bad, but it has its own industry – a quality business, they’ve even exported to the US. Tanzania and Kenya are undergoing massive infrastructure improvements that will require construction equipment and farming vehicles. In other parts of Africa, mineral exploration is in play, and specialized rolling stock will be in demand.” “We’re looking at what happens in North Africa – Libya and other areas. The need for construction equipment for reconstruction.” Meza also thinks the South American market holds promise as countries like Columbia and Brazil grow. The Asian market, especially China also is of interest. Rice said that given the complexities of the regional market, it requires establishing a network. In managing their business, AES has opted for using Descartes/IES as the primary IT solution as the systems can work over a variety of interfaces and allow outsourcing. FLYING THE FAMILY CARWilliam “Billy” Shaw III, Executive Vice President of World Class Shipping (WCS) has pretty much seen everything the business of moving vehicles (and just about everything else) can throw at a forwarder. WCS was founded by Bill Shaw Sr. in 1989, and “Billy III (sometimes called Junior)” started loading planes as a teenager, getting an early on the ground look at the air freight business. WCS tends to go for the very high-end