b'OCTOBER 2025AUTO LOGISTICS 21(IMPACTScontinuedalready calls Halifax, Canada from page 20) andservestheUSMidwest continent which would obvi- thatwaybecauseofspeed ously have significant impli- andlowercost.ButHali-cations for the configurationfax or Montreal could never ofsupplychainsovertime.competewithcarrierscall-Withoutdoubt,automotiveing New York for US coastal logisticsproviderscurrentlypointsbecausetheinlands findthemselvesinare-ad- [transportationcharges]are justmentphaseasclientstoo high. I do not see a huge recalibrate their activities. volumedivertingtoeastern ChineseautomakerBYDCanadian ports. I just see a lot (the worlds largest EV makerfewer US ports being called. and dubbed the Chinese Tesla)Thatchangesdistribution launching production in Europepatterns,warehousingloca-next year is also a potentiallytions, etc. A few big winners majordevelopmentforthebut a lot of big losers.European market. ItisAbbottscontention that the fees should be levied on the freight [vehicles as the leg-(WHAMMYcontinuedislation was originally written] from page 20) not the type of ship. In the case Container Line, better knownof ACLs Ro/Ro ships, they are as ACL, reportedly got wackeddesigned to multi-purpose car-witha$1.4millionfee. Theriers whereas many of the Ro/ACL ship was at the time car- Rovesselsarepurpose-built rying80%containers,10%asPureCarTruckCarriers typicalRo/Rofreightssuch,(PCTC)dedicatedtolargely as vehicles, tractors and con- moving vehicles. But even in struction equipment and 10%the case of PCTC, penalizing highandheavyfreightthe carrier for oversized freight outsizedprojectcargo.Withdoesnt seem in character withtransportation of cars]. TheySupport Docks, the first newtional upgrades at Quonset is slight-of-handswitchinthethe purpose of the legislation. are stillinvestingGlovispier built in Quonset in nearlya senseless attack on this eco-legislationfromfeesontheBut design aside, the ques- isgettinganother10acres70-years. The Port of Davis- nomic center for our state.vehicles carried to the vesselstion remains how Ro/Ro carri- over at East Ventura County.ville is one of the top ten auto net tons, the bill for a port callers can handle the fee structure,It really is going to depend, IimporterportsintheUSasT heD oLLari mPacTsignificantlychangedfortheand the simple answer is somethink, on what US consumerswell as being the staging areaTheimmediateimpact Ro/Ro operators.wont,theywillsimplystopdo and what happens with thefor the offshore wind poweris the cost of a call for a Ro/In an interview on CNBCcalling US ports. And the Ro/ economy and the purchasingfarmlocatedoffofBlockRo carrier at a US port. The AndrewAbbott,CEOofRoportsmaywellhavetopower I just do not know.Island,adualrolecommonincrease from $14 per net ton ACL,saidofthesituation,rethinktheirfuturestrategyRo/Roports,likethetomanyRo/Roports.Ter- to$46wasunexpectedby Thats25vesselsbeingwithout a change in the new feecarriersarestymiedbytheminal 5 was funded throughboththeforeignRo/Rocar-charged $1.4 million a year,structure. legislationandthepotentialState Fiscal Recovery Funds,riers and the US Ro/Ro ports AndrewAbbott,CEOofAJOT correspondent Stasimpactontheirfacilities.allocated to Rhode Island asthemselves. The hike dramat-AtlanticContainerLine.MargaronisinaSeptemberMany of the Ro/Ro ports havepart of the American Rescueicallychangesthecostofa We are looking at a total of25 tharticle (see AJOT.com forexpandedinrecentyearstoPlanAct.However,Quon- ship call. For example, a line $34millionayear.Andfullarticle)ontheSouthernsupportboththemovementset like other Ro/Ro ports ishaulsizeRo/Rocarrierof $34 million is far and awayCalifornia Port of Hueneme,of vehicles and the high andfeelingtargeted,asRhode75,000 dwt or 27,000 net tons anunsustainableamountofinterviewed the Ro/Ro portsheavyloadsassociatedwithIslandSenatorJackReed(reflectingtheactualcargo money for any carrier to paydirectorKristinDecaswhowind power projectsandsaidattheribboncutting,capacity)ofaround6,000 to maintain a rotation. said, Cars are down 11%. Innow both of which are underThe Trump AdministrationsCEUs (Car Equivalent Units) InaninterviewbackinJuly, we are down 9,000 cars.siege through tariffs and reg- needless halting of the Revo- wouldrisefrom$378,000 March withAJOTcomment- So, we are starting to reallyulatory maneuvers. lution Wind project has castpercallto$1,242,000a ing on the original USTR 301see a hit from the tariffs. AndForexample,inRhodeashadowofuncertaintyonmassive$864,000increase proposal, Abbott offered whatwe are trying to dissect it andIsland,theQuonsetDevel- thousands of jobs and couldper call. The fees add about could be a prescient view oftalking to our customers. WeopmentCorporation(QDC)raise energy prices. And the$207pervehiclepertrip the decision making happen- havemeetingsnextweekcelebrated the opening of theAdministrationsrecentter- (asopposedtotheoriginal ing now in the board roomswiththeGlovisexecutivePortofDavisvillesTermi- mination of a separate $11.25$150). These Ro/Ro fees add ofRo/Rooperators,ACLteam[whichhandlesoceannal 5 and the Blue Economymillion federal grant for addi- to the landed costs of a for-eign built vehicle along with therecentlyadjusted15% tariffsleviedonvehicles imported from Europe, Japan and South Korea.Since the charges can be levieduptofivetimesper calendaryearthenewlevy could add up to $6.21 million in fees for the first five calls.And just how will the Ro/Ro carriers adjust to the new versionoffees?Itisclear that the Ro/Ro sector is being targeted out of proportion to othervesselcallsandthe carcarryingportsectoris muchsmallerthansaycon-tainer ports or even dry and wet bulks. Fewer Ro/Ro ships callingataUSRo/Roport representsafarbiggerslice of the ports vehicle business than missing a few container-ship or bulk ship calls. While cutting rotations to a minimum at US port calls isapartialsolutionforfor-eignRo/Rocarriersthereal (WHAMMYcontinued on page 26)'