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09 May 2025 - Year XXIX
Independent journal on economy and transport policy
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FORUM of Shipping
and Logistics


The Ro-ro market
in 2000

 
Searching for shelter

top

The ro-ro ships are something of a niche market within the mainstream liner-shipping sector, and their special characteristics set them apart from the rest. Although the concept of 'roll-on / roll-off' is older than containerisation, within the regular liner routes, they have been largely replaced by the latter.

Competition from the containerships was first felt on the long-haul routes, and then spread itself to other areas where the time at sea was preponderant over the time in port. Although this is not a hard and fast rule, it underlines the sensitive ratio of the voyage cost to the transit cost. A large proportion of the core ro-ro traffic is protected from the competition of containers because of this criterion, but they nonetheless have to comply with the exacting requirements of shippers to whom the transit-time remains a predominant factor. In order to meet this condition, ships have to be increasingly fast, and this has resulted in a real split within the fleet.

However, while speed is a vital concern, it is not the only yardstick used, especially in the trailers sector, where the need is for vessels having a bigger loading capacity, but also being of the right configuration to allow quick turnaround times in port.

1999 and 2000 were both difficult years for many owners whose ships were not sufficiently specialised and who therefore had difficulty finding employment. The charter market severely suffered from the delivery of numerous newbuildings, ordered by liner-operators who proved to be some of the most active players in the market. Pooling and mergers among some of the large groups which led to fleet rationalisations, also contributed towards making the market well and truly depressed.

"Made to measure" seems to have been the guiding force prompting a number of companies to order new vessels which could fit precisely into their specific routing requirements, as for many years such units were rarely available on the tramp market.

Although this has resulted in a well-needed renewal of the fleet, at the same time it produced a considerable slowing-down of activity in the spot market. We therefore have been confronted in 2000 with a two-tier market - between modern vessels ordered by owners who had sufficient faith in their need, and older ones which for a large number of them have become commercially obsolete.

The chartering market thus became very quiet, far too quiet for many, and consequently very little long-term business was seen.


 

Ro-ro ships on long-hauls

top

This sector of the market is extremely confined and fragile, given the small number of vessels and actors. The combination of several factors dealt a blow to these ships.

First, the delivery of several PCC and PCTC* have gradually replaced, with a domino effect, certain large ro-ro ships dedicated to cars and mixed cargoes. In addition, the consecutive mergers of Nosac and Wilhelmsen, then the new group (Nosac Wilhelmsen Lines) with Wallenius, have left their mark. This has resulted in no fewer than seven big ro-ro ships being put back on the market, which then remained, for the most part, idle for several months over the year. Elsewhere, NSCSA which is leaning more and more towards containerisation, took two of their vessels out of service, and have been unable to find either employment or a buyer. The first three months of the year therefore did not offer any option but to look for voyages covering the displacement needs of various international organisations and military authorities. However at year's end, some operators, in view of the depressed state of the market, took the plunge to charter out on a rather long-term period, but at rates averaging 25-30 % less than those achieved a year ago. The vast majority of this tonnage is best suited to business on the West African coast, where the ro-ro concept is (still') accepted. In this respect, Grimaldi, Delmas, and Setramar have signed new agreements starting in 2001 to form a partnership on the Mediterranean / West African routes, where both large combined ro-ros and mixed geared ro-ros will be used.

This type of vessel is rarely built nowadays, and outside of Nosac-Wilhelmsen or even more Grimaldi, the fleet is to all intents and purposes not being renewed. It should be pointed out that the large vessels ordered in the last three years have virtually nothing in common with the existing fleet, which has an average age of almost 16 years. The former are expensive ships, capable of more than 20 knots, and built for dedicated routes combining both forest products and heavy rolling material.

Others have a large car-carrying capacity but are also equipped with cranes to be able to handle situations in certain areas such as Africa which do not have the necessary port-handling facilities.
 

FINNMASTER
11,530 grt, blt 2000 by Jinling - Operated by Finncarriers

 

Ro-ro ships in the trailer sector

top

Over the course of the year, there has been a noticeable split in the market ' based on the size and speed of the vessels. There has been a sustained demand for ships which can be classified as a 'new generation' (2,200 - 2,800 lane metres length, 20 knots or more), but on the other hand almost absent for older ships, which have lower loading capacities and speeds, which seem to interest nobody.

No one could foresee that vessels in the category 1,700 - 2,000 lane metres, capable of 17-19 knots, would have the dickens of a time to find employment throughout the year. Many of these, idle for weeks on end, did occasional trips transporting military equipment or as a last resort did temporary fill-in voyages for some line-ships. The rates that they were able to get were considerably below the previous year, in the order of 30-40 % less.

The undeniable tendency of the vast majority of the main liner-operators over the last two or three years has been to order new ships or to charter-out for long-term periods (often three to five years) against these newbuildings. Gradually the delivery of these new vessels has had the knock-on effect of putting back on the market units which had previously been chartered-out. Many people anticipated a revival in the chartering market as a direct consequence of seeing these ships come back onto the market. The market's reaction was unfortunately quite the opposite and demand remained negligible.

Often when the market is at its depths for a long period, new line projects rear their head, and newcomers start to try their hands in view of the attractive rates. Nonetheless, the repeated attempts of such initiatives have frequently fallen flat, and unfortunately such was the case this year. One should however look carefully at the development of some liner business which is dreamed up to provide an alternative to the overloaded roads. The quality of service offered, the efficiency of the ships used, and the subsequent involvement of road-hauliers in the projects, are all elements that seem essential to us to ensure their success. But in time, such new developments should come about.

The big merger between Tranfennica and Finnlines finally collapsed at the end of the year, just as it seemed on the point of being concluded. This combined force would have resulted in the largest single owner, in terms of units, within the ro-ro fleet. It is highly probable that we shall see in the coming years, as in other parts of the shipping industry, a trend towards consolidation, enabling players to benefit from large economies of scale, which is becoming indispensable in today's competitive climate.


 

In total contrast to the containership market, very few new generation ro-ro vessels can be found for tramping. On the other hand, as the graph on the age structure of the current fleet shows, it strikes us as of prime importance that the pace of scrapping should be accentuated in order to get to the root of the problem. Whilst there has been a successful renewing of the fleet at the top, there is a pressing need to balance this out by cutting back some of the oldest units, which apart from age are totally obsolete both technically and commercially.

Scrappings have in fact increased in 2000, with 28 ships demolished and four others sold for conversion, totalling 275,000 dwt, compared to 10 ships and 59,000 dwt in 1999. The cable-laying market is still interested in sturdy ro-ro ships with a forward superstructure, which are excellent bases for conversion. The sale of such ships over the last two years for this purpose has at least allowed them to obtain a better price than the traditional market would have offered at the same time - namely scarcely above the scrap value.

If we exclude ro-pax ships, among the 51 ro-ro ships delivered in 1999 and 2000 (respectively 32 and 19), around 40 units were employed by their owners, and 10 were placed on long-term charters. These figures illustrate what we have previously pointed out, namely that there are precious few vessels left purely for tramping.

We do not foresee a sudden revival in the chartering market in 2001, in terms of the volume of business. However, provided that scrapping levels remain sufficiently high, owners with good quality ships should logically be able to profit from an improvement in rates, especially as the number of newbuildings to be delivered in 2001 will be equivalent to 2000 (with around 20 vessels) but far below the 1999 level (of more than 30 units).
 




Shipping and Shipbuilding Markets in 2000

I N D E X

›››File
FROM THE HOME PAGE
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A total of 9,351 ships passed through
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Norwegian Cruise Line Holdings Reports Quarterly Net Loss of -$40.3 Million
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ONE closed fiscal year 2024 with net income of $4.2 billion (+336%)
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In the period, seaports handled 73.1 million containers (+8.3%)
Passenger terminal completed at Rizzo dock in Messina port
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Work begins on remodeling the seabed of the port of Reggio Calabria
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UPS closed the first quarter with a net profit of 1.2 billion dollars (+6.6%)
Atlanta
Revenues down slightly following sale of Coyote Logistics
Second Large Cruise Ship Built in China Launched
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It will join the Adora Cruises fleet at the end of 2026
Uiltrasporti underlines the need to keep Italian ports under public control
Rome
The liner shipping industry contributes substantially to the U.S. economy.
Washington
This is highlighted by an analysis carried out by S&P Global Market Intelligence on behalf of WSC and PMSA
Toll worsens from explosion in Iranian port of Shahid Rajaee
Tehran
It caused 46 deaths and injured over 1,200 people
Tender for concession of container terminal at Ukrainian port of Chornomorsk to be announced by mid-year
Kiev
The management will include the general cargo terminal
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New orders value growth slows
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ESPO: The EU Parliament's Budget Committee's request for more funding for transport, energy and infrastructure is welcome
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PSA reportedly considering selling its 20% stake in Hutchison Ports
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Beijing/Washington
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Washington
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Barcelona
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Paris
Danish company develops technologies for digitalization of maritime transport
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Tirana
Passengers also decreasing (-1.6%)
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Vienna
31.8% of the total volume was achieved on routes longer than 300 kilometres
The final budget and the annual report 2024 of the AdSP of Sardinia have been approved
Cagliari
Pilot project for the unified issuing of port access permits for haulers
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Padua
Revenues up +7.3%
Redevelopment works underway at the agri-food hub of the port of Livorno
Leghorn
Works worth six million euros
Bluferries is ready to put the new ro-pax Athena into service in the Strait of Messina
Messina
It can carry up to 22 trucks or 125 cars and 393 people
Approved the financial statement for the financial year 2024 of the AdSP of the Ionian Sea
Taranto
424.8 million port works completed in the last decade
Kalmar reports lower quarterly revenue, higher new orders
Helsinki
In the first three months of 2025, net profit was 34.1 million euros (+2%)
Antonio Ranieri is the new maritime director of Liguria
Genoa
He takes over from Admiral Piero Pellizzari who was discharged from the service upon reaching the age limit
In the first quarter of 2025, China's CIMC recorded a 12.7% increase in container sales
Hong Kong
Revenues grew by +11.0%
SAILING LIST
Visual Sailing List
Departure ports
Arrival ports by:
- alphabetical order
- country
- geographical areas
Last year, the revenues of the Chinese group CMPort increased by +3.1%
Hong Kong
In the first three months of 2025, port terminals handled 36.4 million containers (+5.6%)
The financial statements of the AdSP of Western Liguria and the Central-Northern Tyrrhenian Sea have been approved
Genoa/Civitavecchia
Konecranes revenues increased by +7.7% in the first three months of 2025
Helsinki
343 million euros of new orders for port vehicles (+37.5%)
Kuehne+Nagel posts first quarter of growth
Schindellegi
The logistics group's net sales amounted to 6.33 billion Swiss francs (+14.9%)
Application by TDT (Grimaldi group) for the construction and management of 50% of the Terminal Darsena Europa in Livorno
Leghorn
The company has requested an extension of the duration of the current concession
In 2024, 58 million invested in the modernization of the ports of Livorno, Piombino and the island of Elba
Leghorn
The final budget and the annual report of the AdSP have been approved
In the first quarter the port of Valencia handled 1.3 million containers (+3.4%)
Valencia
Transhipment traffic decline
EIB advice to strengthen climate resilience of the ports of Volos, Alexandroupolis and Patras
Luxembourg
It will assist port authorities in identifying and managing climate risks
The Management Committee of the Central Tyrrhenian Sea Port Authority has unanimously approved the 2024 financial statement
Naples
SOS LOGistica will acquire the qualification of Third Sector Entity
Milan
The association currently has 74 members
In the first three months of 2025, freight traffic in the ports of Barcelona and Algeciras decreased
Barcelona/Algeciras
Hupac transfers intermodal service with Padua to Novara
Noise
Until now the other terminal was the one in Busto Arsizio
PORTS
Italian Ports:
Ancona Genoa Ravenna
Augusta Gioia Tauro Salerno
Bari La Spezia Savona
Brindisi Leghorn Taranto
Cagliari Naples Trapani
Carrara Palermo Trieste
Civitavecchia Piombino Venice
Italian Interports: list World Ports: map
DATABASE
ShipownersShipbuilding and Shiprepairing Yards
ForwardersShip Suppliers
Shipping AgentsTruckers
MEETINGS
A conference on maritime engineering works and climate change in Rome on Wednesday
Rome
It will be held at the Auditorium Fondazione MAXXI
The conference "New sustainable marine fuels - Decarbonize Shipping" will be held in Genoa on Monday
Genoa
››› Meetings File
PRESS REVIEW
Proposed 30% increase for port tariffs to be in phases, says Loke
(Free Malaysia Today)
Damen Mangalia Unionists Protest Friday Against Possible Closure
(The Romania Journal)
››› Press Review File
FORUM of Shipping
and Logistics
Relazione del presidente Nicola Zaccheo
Roma, 18 settembre 2024
››› File
PSA SECH has operated the first 400-meter train at Parco Ferroviario Rugna
Genoa
Capacity up to 20 pairs of trains per day
The 2024 financial statement of the Eastern Liguria Port Authority was unanimously approved
The Spice
The war clearance preparatory to the expansion of the Ravano Terminal in La Spezia is nearing completion
The Spice
The AdSP has invested over 600 thousand euros in it
Francesco Rizzo appointed president of the AdSP of the Strait
Rome
He has repeatedly denounced the uselessness of the construction of the bridge over the Strait
US aircraft attack Yemeni port of Ras Isa
Tampa/Beirut
38 dead and over a hundred injured
In 2025 Stazioni Marittime predicts an increase in ferry and cruise traffic in the port of Genoa
MIT Mobility Report Highlights Rising Demand for Both Passengers and Freight
Rome
In the first quarter, cargo traffic in Russian ports decreased by -5.6%
St. Petersburg
Both dry goods (-5.3%) and liquid bulk (-5.8%) are decreasing
Andrea Giachero confirmed as president of Spediporto
Genoa
The board of directors of the association of Genoese freight forwarders has also been renewed for the three-year period 2025-2028
Study for monitoring vehicular traffic in the ports of Venice and Chioggia
Milan
Order awarded to Circle and Arelogik
In Italy, the rail freight transport sector is in deep trouble
Geneva
Fermerci calls for making traffic incentives structural and increasing and for refinancing the incentive for the purchase of locomotives and wagons
Global Maritime Forum report on optimising ship calls to reduce emissions
Copenhagen
Virtual arrival and just-in-time arrival approaches proposed
In the first quarter of this year, container traffic in the port of Gioia Tauro grew by +15.5%
Joy Taurus
Construction of the "Dockworker’s House" has begun
GNV has taken delivery of the second of four new ro-pax vessels in China
Genoa
"GNV Orion" will be able to accommodate 1,700 passengers and transport up to 3,080 linear metres of cargo
After ten quarters of decline, container traffic in the port of Hong Kong returns to growth
Hong Kong
In the first three months of this year 3.39 million TEUs were handled (+2.1%)
Fincantieri acquires stake in WSense
Rome
The ninth FREMM unit "Spartaco Schergat" delivered to the Italian Navy
Container traffic at the ports of Long Beach and Los Angeles increased by 26.6% and 5.2% in the first quarter
Long Beach/Los Angeles
Trump's tariffs impact imminent
The new edition of the Practical Manual of Maritime Traffic has been presented
Genoa
Written by Assagenti, it turns fifty
In the first three months of 2025, the port of Singapore handled 10.5 million containers (+5.8%)
Singapore
In weight, containerized traffic recorded a decrease of -1.4%
Regulations signed for LNG bunkering at Fincantieri shipyard in Genoa
Genoa
Define the methods of transferring fuel from ship to ship
Historic shipbuilding brands Uljanik and 3.Maj on the verge of extinction
Zagreb
The State confirms its intention to sell the shipbuilding activities at the two sites of Pula and Rijeka
Cambiaso Risso has completed the acquisition of the French Somecassur
Genoa
The transalpine company specializes in the insurance of super and mega yachts
New weekly train service between the port of Gioia Tauro and Verona
Joy Taurus/Verona
Operated by Medlog for the transport of refrigerated goods
EBRD looking for strategic partner for development of Moldovan river port of Giurgiulesti
London
International competition launched
Turkish ports set new first-quarter cargo traffic record
Ankara
Historic peak of cargo imported from abroad
In the first quarter of 2025, freight traffic in the port of Taranto grew by +37.6%
Taranto
Increase of 854 thousand tons of solid bulk and 265 thousand tons of conventional goods
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