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Vehicle carriers seek relief from broad US port fees
Vehicle carriers seek relief from broad US port fees

Fashion Network

time27-04-2025

  • Automotive
  • Fashion Network

Vehicle carriers seek relief from broad US port fees

Operators of hulking car carriers are seeking relief from the U.S. Trade Representative's surprise plan to levy port fees on all foreign-built ships in that segment, including 20 vessels that guarantee transport for the U.S. military during a war or national emergency, three sources told Reuters. USTR announced the fees on April 17 as part of an ongoing effort to hit certain China-linked ships calling at U.S. ports with fees that would fund a domestic shipbuilding revival and counter China's dominance on the high seas. The fees sent a shockwave through the vehicle carrier industry, because they went beyond targeting China-built and China-owned ships. The fees on vehicle carriers are so broad that they would hit the 20 U.S.-flagged and U.S.-crewed vehicle carriers admitted to the U.S. Maritime Security Program (MSP) that supports Washington's military readiness, according to two attorneys, who requested anonymity due to fear of reprisal. The fees also would heap massive costs on U.S. automakers already hurt by U.S. President Donald Trump 's tariff policies. The levies were not mentioned in the original USTR port fee proposal from February, so unlike operators of other vessels, vessel carriers had no opportunity to give feedback. "The fee on the car carriers came from nowhere," one of the attorneys said. Both said the USTR overreached because the fees are levied on ships made in countries that were not part of the Biden administration's fast-track investigation that found China unfairly dominates the global maritime, logistics and shipbuilding sectors. The World Shipping Council (WSC), whose members include Swedish vehicle transporter Wallenius Wilhelmsen, warned on April 18 that the fees would hit almost every car carrier and have unintended consequences. WSC declined to comment further. The attorneys and one industry group say they have requested meetings with USTR to discuss their concerns. USTR did not immediately comment on whether the body would meet with vessel carrier representatives. The USTR plans plans to charge foreign-built vehicle carriers $150 for every car the ship has capacity to carry, beginning on October 14. That fee would be $900,000 for a ship that transports 6,000 cars. Vehicle carriers are vital to U.S. military readiness because they can transport large equipment such as tanks, aircraft and helicopters. Companies with ships in the MSP include Florida-based American Roll-On, Roll-Off Carrier Group, a U.S.-flag operator of vehicle carriers that is part of Wallenius Wilhelmsen Group. New York-based Liberty Global Logistics, is another provider. Spokespeople for ARC and Liberty did not immediately respond to requests for comment, while Wallenius Wilhelmsen declined to comment. A spokesman for Maersk Line Ltd, the U.S. arm of the Danish container shipping giant which is also part of the MSP, said it is reviewing the most recent information from USTR and preparing for a range of scenarios. There are 1,466 vehicle carriers in operation, according to data from Alphaliner. Just 39 of those ships were built in the United States, Alphaliner said.

Wallenius Wilhelmsen secures ro-ro contract extension, renewal worth more than $2B
Wallenius Wilhelmsen secures ro-ro contract extension, renewal worth more than $2B

Yahoo

time28-03-2025

  • Automotive
  • Yahoo

Wallenius Wilhelmsen secures ro-ro contract extension, renewal worth more than $2B

Roll-on/roll-off carrier Wallenius Wilhelmsen announced separate contract changes worth more than $2 billion. The Oslo, Norway-based company (OTC: WAWIF) said it has signed a contract renewal with a European automotive manufacturer. The five-year agreement, valued at $380 million, is set to commence on Tuesday. In a separate development, the carrier announced a 10-year contract extension with an automotive OEM. Wallenius did not disclose the identity of either company. An OEM typically produces scope of services provided by Wallenius Wilhelmsen under these agreements is comprehensive and includes receiving vehicles, end-of-line services, accessory installation, delivery management, vehicle distribution and storage, and digital supply chain insights. Wallenius Wilhelmsen offers short-sea and deep-sea ocean services under separate agreements. The long-term, multiproduct contracts 'provide seamless integration, flexibility for both parties, and room for innovative collaborations to enhance digital value chain solutions,' said John Felitto, executive vice president and chief operating officer of logistics services at Wallenius Wilhelmsen, in a release. Looking to the future of the contract renewal, the parties expressed their intention to expand the partnership further. The shared vision includes broadening the contract's scope to encompass ocean services, creating a more comprehensive and integrated strategy. This approach aims to streamline processes and leverage advanced digital solutions to future-proof operations.'The contract has a solid land-based scope and is one of our largest,' Felitto said. 'It is exciting to enhance a partnership that already prioritizes comprehensive integration and digital transformation at its core.' The extended contract, starting in April 2027, has an estimated gross revenue of $2 billion, the carrier said. Find more articles by Stuart Chirls blocks sale of Panama Canal shipping terminals to US investor: Reports Port of Savannah sets record container, rail and truck moves in February Trump tariff fears plague ocean container ratesTrade groups, businesses speak to both sides of proposed US port fees The post Wallenius Wilhelmsen secures ro-ro contract extension, renewal worth more than $2B appeared first on FreightWaves.

Deltamarin to design Wallenius Wilhelmsen's upsized Shaper Class PCTCs
Deltamarin to design Wallenius Wilhelmsen's upsized Shaper Class PCTCs

Yahoo

time26-02-2025

  • Automotive
  • Yahoo

Deltamarin to design Wallenius Wilhelmsen's upsized Shaper Class PCTCs

Finnish marine engineering company Deltamarin has been selected to design and engineer an upsized version of the Shaper Class pure car and truck carriers (PCTCs) for Norwegian shipping firm Wallenius Wilhelmsen. The vessels, set to be built at China Merchants Jinling Shipyard (Jiangsu), will feature dual-fuel engines capable of operating on methanol. Under the contract, Deltamarin will provide design services for six of the 14 vessels currently on order. The ships will be enlarged from 9,300 car equivalent units (CEUs) to approximately 12,100 CEUs, making them among the largest PCTCs ever built, according to the company. The expansion aligns with Wallenius Wilhelmsen's goal of reducing the overall cost of its net-zero emissions strategy. Deltamarin's scope of work includes both basic and detailed design, with an emphasis on optimising fuel efficiency, safety, and sustainability. The upsized vessels will retain key features of the Shaper Class, including dual-fuel engines capable of operating on methanol, which is expected to lower fuel consumption and emissions compared to existing fleet models. Designed to meet the growing demand for sustainable transport solutions, the ships will incorporate features aimed at minimising emissions throughout the transport process. They will also be built with enhanced ramp strength and increased capacity for high-and-heavy cargo to meet the needs of global logistics. The first Shaper Class vessels are planned to be delivered in the second half of next year, with the upsized versions expected to enter service by late 2027. Last year, Swedish shipping company Sirius Shipping placed an order for four 7,999 deadweight tonnage (dwt) oil/chemical tankers with China Merchants Jinling Shipyard, Dingheng. These Evolution 8k hybrid series tankers will feature advanced propulsion systems and incorporate cutting-edge technology to meet future regulatory requirements. "Deltamarin to design Wallenius Wilhelmsen's upsized Shaper Class PCTCs" was originally created and published by Ship Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio

Georgia port tops US ro-ro gateways
Georgia port tops US ro-ro gateways

Yahoo

time17-02-2025

  • Automotive
  • Yahoo

Georgia port tops US ro-ro gateways

The Port of Brunswick, Georgia, was the top U.S. port for vehicles in 2024. Brunswick achieved a record year, totaling 901,912 units of autos and heavy equipment, up 13.3% and 160% y/y, respectively. Georgia Ports President and Chief Executive Griff Lynch was quoted in a release as saying at the Brunswick State of the Port event that Colonel's Island Terminal has become the nation's busiest port for autos and heavy equipment, handling more than 2 million tons of roll-on/roll-off cargo in 2024. Brunswick also was the top port for ro-ro exports at 600,000 tons, the port said, citing USATradeonline authority completed $262 million worth of improvements at Brunswick in 2024, adding new warehousing and processing space, as well as 122 acres of ro-ro storage. Construction has started on a new rail yard on Colonel's Island, while a fourth berth for ro-ro vessels is in the engineering phase. Brunswick also benefited from thousands of vehicle shipments diverted from the Port of Baltimore after the Key Bridge disaster shut down ro-ro handling in April. Baltimore, until this year the leading ro-ro gateway, saw vehicle shipments decline by 11% in 2024. The Georgia port continues to scale up, and a new rail yard on the south side of Colonel's Island Terminal will increase the capacity to export vehicles arriving by rail. Improvements to the existing Myd Harris Yard will also bring rail switching onto the terminal.'Our growth comes as auto manufacturers seek to increase their business through Georgia,' Lynch said. 'This project will expand capacity, improve our ability to serve inland factories, and increase the safety of rail operations, both on- and off-terminal, and lessen our community impact with our port neighbors.' Lynch said the added capacity will extend Brunswick's service area, because moving cargo from farther-to-reach inland factories to the Georgia coast is more cost-effective by rail than truck. Phase 1 of the new rail yard will increase the port's annual rail capacity from approximately 150,000 autos to more than 340,000 by mid-2025. Phase 2 will boost capacity to 590,000 units, greater than three times the current capacity. More than 90% of vehicles moving through Brunswick by rail are U.S.-manufactured exports. Separately, construction on a fourth ro-ro berth is in the planning stages and expected to start in summer 2025. The new berth should be complete in 2027 and will more efficiently accommodate vessels carrying 10,800-plus car equivalent units (CEUs). A 20-year agreement signed with Oslo, Norway-based vehicle carrier Wallenius Wilhelmsen in April 2024 consolidates the company's Georgia logistics operations at the Port of Brunswick. 'At its expanded Brunswick facility, WW is not only handling ro-ro processing, but also order fulfillment for heavy equipment, configuring the machinery for the end user before delivery,' Lynch said. The authority's master plan calls for all ro-ro cargo to be located in Brunswick, and container trade in said market forces favor the continued expansion of Brunswick trade. Two major factors include the rise of manufacturing and a growing population in the U.S. Southeast. Auto exports grew by 9% in 2024, and imports at Colonel's Island were up by 20% y/y. Lynch said Brunswick anticipates handling larger vessels, carrying a greater number of autos and heavy equipment. The typical ro-ro ship today has a capacity of 4,000 to 8,000 CEUs. Carriers are expected to bring 10,800-CEU vessels to Brunswick in the next two to three years. 'Similar to the dynamic of growing container ships, these larger ro-ro vessels are expected to call on fewer ports and handle greater influxes of units during each visit,' he said. 'The 1,700-acre Colonel's Island Terminal is uniquely qualified to handle these larger transactions thanks to our scale of operations and efficiency.' At the same time, federal projects will also upgrade the shipping channel in Brunswick to handle larger vessels, and the state has allocated more than $6 million for special harbor improvements including a U.S. Army Corps of Engineers plan for a bend widener and expansion of the turning basin. An expanded vessel meeting area at St. Simons Sound will improve safety for two-way traffic. Congress has approved approximately $38 million for Brunswick, including the $11.35 million federal share of the harbor improvements project. An additional $26.6 million is designated for dredging the federal waterway to its full authorized depth of 36 feet in the inner harbor and 38 feet in the outer harbor. Lynch noted that to date, federal funding and procurement has fallen short for both the annual maintenance dredging and the harbor modification project. He called on the Corps to identify a workable solution for these projects. 'Federal agencies must keep pace with this global trend by performing timely dredging to maintain safe channels in a dependable, proactive manner.' Find more articles by Stuart Chirls Helicopter lifts crew to safety from grounded container ship Jaxport completes vehicle berth expansion UPDATE: Photo of damage to US aircraft carrier in Mediterranean collision Analyst: Shippers' tariff fears could keep trans-Pacific container rates up during February 'dip' The post Georgia port tops US ro-ro gateways appeared first on FreightWaves.

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