4 American Journal of Transportation American Journal of Transportation ajot.com lead to greater efficiency for Ro/ Ro shippers. Several US ports are investing in Ro/Ro infrastruc- ture, a positive step expected to streamline dock operations. In addition to aligning with the ports best suited to meet their needs, Ro/Ro shippers are form- ing partnerships with transporta- tion and logistics providers that add value by coordinating more effectively with stakeholders and managing the many aspects of transporting Ro/Ro shipments. Tariffs Slam Ro/Ro Shippers The Ro/Ro industry is sub- ject to tariffs that can be substan- tial, up to 25% on automobiles imported into the United States from countries other than Canada or Mexico. Depending on their country of origin, automotive parts used in manufacturing are also subject to high tariffs. The timing of the applica- tion of a tariff is also a factor. Because tariffs are assessed at the port of entry, Ro/Ro shippers face immediate cost increases. If those costs are passed on to buyers, end-user demand can drop sharply. In 2025, there was a 7% decline in US car imports, and larger declines are expected in 2026. The price of automo- biles has increased by thou- sands, raising the average car price to $48,500 or more. Man- ufacturing more autos in the US can be a solution. However, auto producers are already oper- ating at high levels, so domes- tic output cannot replace lost imports in the short term. Tariffs can also result in vol- atility in volumes. Some original equipment manufacturers (OEMs) increased shipments ahead of the implementation of tariffs imposed in April 2025 to avoid added costs, causing surges at US ports fol- lowed by steep declines. Some operators are shift- ing away from their most profitable trade lanes and real- locating cargo to regions less affected by policy changes or political instability. Any signif- icant change to trade routes can cause supply chain disruptions and potentially increase the cost of transporting goods. The impact of tariffs does not affect all trade partners to the same degree. Andrew J. Abbott, President and CEO of ACL, a transatlantic carrier for both Ro/ Ro and other cargo, said, “While transatlantic car trade is down, Chinese car exports were up 57% in the first quarter of 2026.” He noted that, “The tariffs and antagonistic US foreign policy have certainly not helped our business at ACL, but they appear to be hurting US export- ers worse than importers so far.” Ongoing global unrest is one factor behind Wallenius Wilhelmsen’s recent decision to lower its 2026 earnings out- look. The company said the Middle East conflict, although (GROWING – continued on page 6) (GROWING – continued from page 2) Logistics players adapting to Europe automotive industry’s shift in dynamics By Stuart Todd, AJOT According to the Association of European Vehicle Logistics (ECG), the finished vehicles industry stands at a pivotal moment within a rap- idly evolving global automotive landscape, marked by the acceleration of electric vehicle adoption, China’s rise as a manufacturing and technology powerhouse, and ongoing geopolitical and supply chain uncertainties that are reshaping the industry on an unprecedented scale. In an interview with AJOT, Sander Van Der Meer, SVP Vertical Market Hi-Tech and Automotive at Geodis, discusses how logistics services providers (LSP) are adapting to the shift- ing dynamics in the automotive space and highlights the new opportunities for growth that are opening up. AJOT: What has been the impact of the 15% tariffs on US imports of automobiles from the EU which took effect from August 1 last year? SVDM: In terms of num- bers, EU car exports to the US decreased by around 21% in 2025 as a direct effect of the tariffs. Early-2026 data shows the pace of decline accelerating — exports were down 27-28% in January and February year-on-year. A framework agreement was reached between Washington and Brussels that reduced the tariff rate, initially set at 27.5% to 15%, but even at that level the damage to export volumes is clear and the uncertainty has already reshaped production and shipping decisions. AJOT: And the knock-on effects for European automotive logistics players such as Geodis? SVDM: Fewer cars and parts going to the U.S. means less business, less freight, and quieter automotive hubs. But the bigger issue is what's happening behind the scenes. Our customers are rethinking where they produce and how their supply chains are set up. That makes planning harder and longer-term commitments more diffi- cult for everyone. At Geodis, we are dealing with this by staying close to our customers and what they are doing — not just moving their cargo but supporting them across the full chain: parts dis- tribution and inbound flows. When customers are going through a restructuring, they need a partner that helps them through these transitions, and we are working with them to find logistics solutions. AJOT: Are Chinese auto- makers emerging as the main driver of demand for automo- tive logistics services in Europe as incumbent manufacturers’ output continues to decline? SVDM: Chinese OEMs are already a material part of the European automotive story and it’s only going in one direction. The top three Chinese brands in Western and Central Europe registered over 617,000 passenger cars in 2025, compared to under 26,000 in 2020. BYD is building a greenfield production Sander Van Der Meer, SVP Vertical Market Hi-Tech & Automotive at Geodis (ADAPTING – continued on page 8)
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