What's the hold-up with bringing in RORO vehicles into New Zealand?
The importation of vehicles into New Zealand seems to be a perfect storm of a multitude of individual issues. Below are the main reasons for the delay.
Driver shortages impacting Europe and UK
The importation of roll-on, roll-off (RORO) vehicles into New Zealand has been plagued by delays, with various factors contributing to the congestion and handling issues in ports worldwide. In Europe and the UK, one of the major causes of these delays is the persistent shortage of truck drivers. This shortage has been made worse by the declining number of companies operating car-carrying vehicles. Additionally, the unpopularity of trucking cars among drivers has further compounded the problem.
Not enough RORO vessel space
Another significant challenge in the importation process is the shortage of RORO vessel space. Ports in Europe, particularly Southampton, Koper, and Antwerp-Bruges (formerly Zeebrugge), have been grappling with space issues, resulting in delays for car exports. The scarcity of vessel space has hindered the movement of cars and added to the congestion at these ports.
COVID-related production delays
The global pandemic has caused disruptions in production, including the shortage of semiconductors. This shortage, known as the "bullwhip effect," has significantly impacted the automotive industry and delayed the manufacturing of vehicles. Consequently, the shortage in parts has further hampered the importation of RORO vehicles, leading to delays in their arrival in New Zealand.
Car trucking unpopularity among drivers overseas
Trucking cars is not a preferred job among drivers, and this sentiment has contributed to the delays in importing RORO vehicles. As drivers retire from the profession and a decline in the number of companies operating car-carrying vehicles occurs, the driver shortage worsens. Additionally, the conflict in Ukraine has exacerbated the driver shortage issue, as many drivers previously came from that country.
A shortage of sea vessels
The shortage of short sea vessels has presented another hurdle in the importation process. This scarcity further limits the capacity of European terminals to transport cars from the ports to their final destinations. To accommodate the increasing demand and reduce delays, additional vessels need to be deployed in the rotation. However, the shortage of vessels poses a significant challenge and adds to the congestion at ports.
Delays in fumigation treatment at Australian ports
Before RORO vehicles can be imported into New Zealand from Australia, fumigation treatment is required. However, delays in this treatment process in Australian ports have contributed to the overall delays in importing vehicles into New Zealand. These delays have further disrupted the supply chain and increased waiting times for businesses and consumers alike.
Let Gateway Cargo keep you up to date
In an industry that is full of delays and complex shipping issues, through collaboration between us, and your business, shipping companies, port operators, and government agencies we can keep you informed.
But the best solution is to get onto your importation orders sooner, rather than later. And with the upcoming Stinkbug season that will cause more delays, it's important to contact us as soon as you can.