8 American Journal of Transportation American Journal of Transportation ajot.com 1 OUR SERVICES Warehousing and Logistics Solutions Warehousing • Rack/bulk storage • WMS inventory control • Temporary and seasonal surges Distribution • Import/export • Dry goods and specialty foods • Transportation resources Fulfillment • Order processing • Pick/pack • Labeling • Restacking Cross-docking • Loading/unloading • 21 doors • Minimal turnaround Call us at (201) 773-0770 250,000 sq. ft. owner-operated warehouse serving the Tri-State Area for 29+ years 20-10 Maple Avenue Fair Lawn, NJ 07410 teamlogistics.com LEARN MORE AT fire monitoring. Ro/Ro transport of EVs is considered safe overall; some unique risk factors include damaged batteries. Any damage to an electric vehicle can result in problems during transport. Struc- tural damage near the battery pack can result in shipping companies’ refusals to load the vehicles. Port Expansions Support Faster and Safer Cargo Movement Several US ports are investing in infrastructure to accommodate Ro/Ro shipping. The port of Jacksonville, Florida, JAXPORT, which recently celebrated the completion of its new state-of-the-art vehi- cle processing facility. Spanning more than 380,000 square feet across seven build- ings and 88 acres. The facility is designed for efficiency, with the ability to process approximately 4,000 vehicles per week, nearly double the number of vehicles that could be processed in the previous facility. While many automakers will benefit from this expansion, Southeast Toyota Dis- tributors, the world’s largest independent Toyota distributor, said the new facility will support improved service to existing customers and position the company for continued growth. The port of Galveston, (GROWING – continued from page 6) facility in Hungary, and SAIC appears to have narrowed down a European produc- tion location in the EU to Spain. The shift from import-only to local European pro- duction is accelerating and with it, growth in supplier networks, inbound parts, fin- ished vehicle distribution, and after sales. AJOT: Does Geodis have growing business in the European market with Chinese automakers? SVDM: Chinese OEMs are abso- lutely on our radar — they're a priority for us. We have a strong existing customer base in the automotive vertical and we're actively engaging with Chinese brands that are expanding their presence in Europe. Those conversations are happening but we’re being selective about how we enter this space. We want to make sure the partnerships we build are the right ones, structured in a way that works for both sides. We’re not in a rush to sign deals that don’t fit. When the right opportunity comes along, Geodis has the network, the expertise, and the European footprint to be a strong partner for any Chinese OEM serious about growing here. AJOT: With market conditions diffi- cult for European automakers, are they looking to reduce spending on transport and logistics costs? SVDM: There’s always pressure of this kind when margins come under strain. But the more discerning OEMs understand that cutting logistics spend indiscrimi- nately just transfers risk. What we’re actu- ally seeing is a sharper focus on total cost of ownership — customers want fewer, more strategic logistics partners who can offer integrated solutions rather than frag- mented spot buying. Tender activity is up but it’s not purely a race to the bottom on price. Reliability, visibility, and flexibil- ity have become differentiators because production disruptions are expensive. The OEMs that went too lean on logistics during previous cycles learned that lesson. Our job is to demonstrate that we deliver value beyond the rate — and in the current environment, that argument holds. AJOT: How have Geodis’ activities in the automotive vertical been affected by the conflict in the Middle East and the spike in fuel prices? SVDM: The Middle East situation hit us operationally — longer lead times on Asia-Europe lanes, higher freight rates, more complexity for customers run- ning supply chains through that region. Fuel and diesel cost increases are also hitting us hard. It’s one of the most direct cost pressures we face right now, and it’s not going away. We manage it through our carrier contracts and com- mercial structures but there’s no getting around the fact that it squeezes margins across the board. The longer-term concern is bigger than any single disruption though. Cus- tomers are realising they can’t rely on one route or one corridor. We’re actively helping them rethink their supply chain design and build in more resilience — because the next disruption is always around the corner. AJOT: What other challenges are you faced with currently in this vertical? SVDM: Three challenges come to mind. First, the pace of electrification is reshaping the parts and after-sales logis- tics footprint. EVs have significantly fewer components than ICE vehicles which has downstream implications for spare parts networks. Second, the battery supply chain is still in its infancy in Europe — cell production, pack assembly, and reverse logistics for end-of-life batteries all need purpose-built logistics solutions that the industry is still developing. Third, the political and trade envi- ronment remains unpredictable. Tariff changes, EU-China relations, and potential further US measures all create planning uncertainty that makes multi-year logistics contracts harder to structure. Adapting to that uncertainty without losing commercial momentum is the real challenge. new Ro/Ro capabilities, with completion expected in 2028 For Ro/Ro shippers, Ro/Ro infra- structure investments like these often support faster, safer, and cheaper cargo movement, greater capacity to handle growth, and more reliable service. Ports that invest now can better serve customers during peak demand, supply chain disrup- tions, or market expansion. Partnerships with Transportation and Logistics Providers Add Value Transportation and logistics provid- ers with expertise in Ro/Ro shipping are assisting companies with the coordination of documentation, setting appointments, and managing disruptions throughout the process. K Line (Kawasaki Kisen Kaisha, Ltd,) a Japanese shipping and transporta- tion company focuses on customer ser- vice. The company provides dedicated customer service assistants available 24/7. “Ro-Ro is a very specific business, and we work with clients vertically from the OEMs to producers of finished goods,” said Homer Crane, Vice President, North America Sales, K Line Americas, Inc. As part of its standard procedures, the company acts as an extension of its cli- ents, helping to educate those who are new to the business and evaluating options to determine the best fit for each client. “From the land side to the ship and the ultimate delivery, we work with customers to help them refine their practices to improve supply chain efficiency,” said Crane. The Ro/Ro shipping industry is navigating and evolving in a regulatory and trade policy environment. How- ever, the segment is poised for continued growth with new sources of revenue and improved port infrastructure that will ulti- mately drive efficiency. Texas, is investing $106 million in 2026 to expand breakbulk and Ro/Ro capacity at its West Port Cargo Complex. In May 2026, the Port of Charles- ton, South Carolina, approved a major expansion of Ro/Ro operations at its North Charleston Terminal. The project will convert an adjacent former paper mill site into a Ro/Ro facility, with dem- olition beginning in 2026 and terminal preparation scheduled to start in 2027. The expansion will add rail upgrades and (ADAPTING – continued from page 4)
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