b'JUNE 2025RO-RO TRANSPORTATION 31(DOUBLEcontinued fromweak, not strong. as it has been for quite a while.BYDisChinasmegaEVcial shipbuilding to the US. We page 28) T uning Thee conomic TheGerman-automakersplantand Plug-in Hybrid electric vehi- needtofigureoutitsviability luxury vehicles having an esti- in Spartanburg, South Carolinaclemanufacturerandhasnow(steelsupplyandproximity, matedtariffimpactexceedinge ngine : a reT ariFFs The exported 225,000 BMWs Sportsstepped into the Ro/Ro businesslaboravailability,technology) $15,000. Models in this groupr ighTw ay Tog o ? ActivityVehiclesandCoupesto ship its production to consum- and [then] decide what we need includeMercedesG-WagonTheoverallgoalofthein2024worthnearly$10bil- ersand done so in a big way.to make it a stand-alone indus-andotherMercedessedans,administrationstariffblitzislion. And since 2014, the SouthRecently the company launchedtry. Dont subsidize our way to LandRoverandRangeRovertore-balancetheperceivedCarolinaplanthasexportedthe BYD Xian and BYD Shen- competitiveness.Eliminatethe models,someBMWmodels,imbalanceintheautotrade.morethan2.7millionBMWszhen, reportedly bringing the cargovernment-imposedburdens and the Ford Mach-e. In the case of vehicles, the US(or about 63% of the plants totalmanufactures fleet to six.on companies to allow them to PatrickL.Anderson,whoimported an estimated 7.8 mil- production) with an export valueBackin2022,withlittlecompete independently with the was the principal author of thelionunitswhileexporting2.5of more than $104 billion.fanfare, BYD said it was goingrest of the world.report wrote, The adjustmentsmillionunits.FromthedollarSo,willtheadministra- to invest just under $700 millionPoint 3 particularly as it providesignificantandbenefi- standpoint, the US spent $216.8tions tariffs redress the US autoto build a Ro/Ro fleet with eachapplies to Ro/Ro ships is impor-cial softening of the cost impactbillion on imported cars duringimbalanceorsimplystifleUSvessel capable of handling 7,000tant. The US can and does build of these tariffs, at least for US- 2024 and exported $59.2 billionauto sales in 2025? With vicissi- vehicles.Thelatestlauncheda limited number of Ro/Ro ves-assembledvehicles.However,worth of vehicles. Thus, in sim- tudes of the Trump tariffs poli- Ro/Ros,theBYDShenzhensels. For example, Matson had thecostisstillsubstantialforplified terms the auto deficitcies, its a question that for nowandChangsha,uppedtheantetwoJonesActKanaloaClass most American cars and trucks.in 2024 was $147.6 billion. has no answer. having a capacity of 9,200 vehi- Con-Ro [Container-Ro Ro] ves-We do not expect consumers toHowever,thereareverycleswhich might anoint themselsbuiltatGeneralDynamic absorb tariff costs that are stillfew, if any, manufacturing indus- the Ro/Ros with the largest car- NASSCO shipyard in San Diego above $4,000 for many models,tries, as globally intertwined as(STEPScontinued fromrying capacity.for around $500 millionthe andabove$10,000forluxurythe auto industry. A car is a lotpage 29) Can US shipbuilding com- largest of their type built in the vehicles imported from Europelike a jungle with eco system ofdistributionfunctionsandonepete with China in building Ro/ US.Nonetheless,itwilltake and Asia. symbioticpartscontributingtolocation, and make more spaceRos? It is probably fair to saydecades to build a standalone So,thequestiongoingfor- the whole. And tariffs are a bluntavailableforwarehousingandnotnowandlikelynotwithinshipbuildingindustrythatcan ward,willtariffsnotonlydis- regulatoryinstrumentbyanydistribution facilities away fromeven a decade. compete globally.courageautoimportstothemeasureandespeciallywhenseaports. Abbott,hadaninterestingBut in the meantime, the US US but demand for US [mostlyapplied to a part-sourced heavycounterproposaltotheUSTRcan compete at the Port level for built] built autos?item like a car.thatwouldapplytotheRo/ Ro/Ro services.Ports like, Bal-ThelatestCoxAutomo- And like all the parts neces- (AHEADcontinued fromRoconundrum.Herecom- timore, Brunswick, San Diego, tive Dealer Sentiment (CADSI)sary to build an automobile, thepage 30) mends:1.Dontpunishcar- Hueneme,Quonset/Davisville, mightgiveaglimpseattheindustryitselfiscomplex. Andturbineprojectswilldecline.riersandAmericansexportersAntioch,Benicia,Jacksonville, futuredirectionofautosales.maybe a quick reminder of thatAnd the imports and exports ofwhohavefollowedeveryrulePortland, Houston, Los Angeles, According to Cox The marketcomplexity can be illustrated in aH&H loads, can in the case ofandregulationforcommercialLongBeach, Houston,Galves-outlookindexwhichmea- simple question. In dollar terms,someRo/Rooperatorsaccountdecisions made in the past. 2.ton,Miami,Richmond,Phila-sures expectations for the autowho was the United States big- for half the revenue.Puttheeffectivedateofanydelphia, New York/New Jersey market in the next three monthsgest exporter of vehicles in 2024?new charges on new ship ordersjust to mention a few ports thatdropped after two quarters ofWasitGM,FordorStellantisr o /r on ewBuilds placed at a future point so wehaveinvestedbillionsandare improvement,fallingsignifi- (formerlyFiatChrysler)theAnd if the US does under- get a soft landing that doesntcontinuing to invest in their Ro/cantlyfrom58to45,landingBIG3 of US automakers?taketojumpintoRo/Ro,ithurt American people and com- Ro facilities.just one point higher than year- Perhapsunexpectedly,themightwanttolookatwhatispanies.3.BigfatsubsidiesCan the US afford to ignore ago levels. The score of 45 indi- USbiggestautoexporterinhappening in China with anotheralone (that cost big tax dollars)thishard-earnedcompetitive cates the market ahead will bedollar terms in 2024 was BMWRo/Ro startup.willnotbringbackcommer- advantage? A Leading Ocean Shipping& Logistics CompanyLiberty Global Logistics LLC 516-488-8800LibertyGL.com 1979 Marcus Avenue Suite #200, Lake Success, NY 11042'