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CEVA Logistics signs four-vessel ro ro deal

[ May 3, 2023   //   ]

CEVA Logistics has signed a 10-year lease with its parent company, CMA CGM to operate four Eastern Pacific Shipping LNG dual-fuel hybrid deep-sea vessels. They will move around 140,000 vehicles annually between global markets, especially China and Europe.

The ships are currently under construction by China Merchants Jinling Shipyard (Weihai), with the first expected to be delivered in December and the remainder in 2024. Under the lease agreement, CEVA Logistics will manage and operate the vessels with full commercial control over the ro ro capacity.

At nearly 200 meters long, the 72,000dwt vessels will have a capacity for 7,000 on their 12 decks at a maximum speed of 19.5 knots. Hybrid power systems will include both LNG and electric battery capabilities.

The new vessels will enable CEVA to offer its owned, controlled capacity to automotive customers and provide flexible shipping options and end-to-end services, taking delivery of finished vehicles directly from manufacturing facilities and then managing transport to final destinations around the world through its network.

Ceva Logistics global finished vehicle logistics leader, Emmanuel Cheremetinski, said: “As the automotive supply chain continues to stabilize from numerous shocks over the past several years, we have remained close to our customers to understand their challenges and growth opportunities.

The decision to operate four deep-sea ro ros is a clear example of our promise of responsive logistics. With such a large need for additional capacity, we found a solution that allows us to co-create long-term value with our customers in the global economy by improving the go-to-market conditions for their finished vehicles.”

In January, CEVA Logistics announced the setting up of a Global Finished Vehicle Organization following its acquisition of the vehicle-orientated logistics specialist, Gefco by CMA CGM Group in July 2022. Prior to the GEFCO acquisition, CEVA already supported 14 of the top 15 global automotive manufacturers and many global automotive parts suppliers with logistics solutions, including inbound to manufacturing, component and aftermarket services. With the addition of full vehicle distribution and transport, CEVA says it can offer full lifecycle solutions to the global automotive industry.

The CMA CGM Group’s newly formed specialist maritime shipping arm is also set to include La Méridionale, which operates ro pax ships currently being acquired subject to the approval by regulatory authorities.

The Group also invested €25 million in cross channel freight and passenger operator Brittany Ferries in 2021 to support its recovery.

The group is also helping to finance the Neoline, the first wind-powered ro ro vessel.

As well as ro ro solutions, CEVA is also strengthening its Cars in Containers solution to offer a more flexible option for shippers that need to transport small quantities of finished vehicles to strategic ports or in-land locations not easily served by its own ro ro vessels or other carrier partners.

CEVA manages container loading and unloading of finished vehicles, which shippers often find time-consuming and labour-intensive. As ocean shipping rates are expected to remain lower than in previous years, the solution offers carmakers another alternative in transporting finished vehicles around the world.

Ceva expects global new light vehicle sales to reach nearly 83.6 million units in 2023, a 5.6% increase year-over-year, quoting a recent forecast by S&P Global Mobility. With global 2022 production up by about 6.0% over 2021 levels, estimates place 2023 production at 85 million units with a 4% increase from 2022.

However, production levels are not expected to reach pre-pandemic numbers before 2024 or 2025, according to various industry estimates. In 2022, China exported 3.1 million vehicles, a year-on-year increase of 54.4%, according to the China Association of Automobile Manufacturers.

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