Author: Dr. Theo Notteboom
The Roll-On/Roll-Off (RoRo) shipping market specializes in transporting wheeled cargo, like cars, trucks, trailers, and other heavy machinery, which are driven on and off the vessels on their own wheels. Due to the nature of the industry and its operations, RoRo activity at port terminals requires a large amount of space, mostly for parking.
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1. Types of RoRo vessels
RoRo vessels have large open spaces and multiple decks, allowing vehicles and cargo on trailers to be easily rolled on and off the ship through ramps at the stern, bow or side. RoRo shipping allows for quick loading and unloading due to the self-driven nature of the cargo, which reduces turnaround times. RoRo vessels come in different functionalities, shapes and sizes, such as PCTC, Conro and RoPax vessels.
A. Pure Car and Truck Carrier (PCTC) and Pure Car Carrier (PCC)
Pure Car and Truck Carrier (PCTC). A specialized RoRo vessel designed specifically to transport cars, trucks, vans, buses, and some construction or agricultural machinery. They typically combine fixed decks for passenger vehicles and flatter cargoes with hoistable decks strengthened for carrying heavy cargo.
Pure Car Carrier (PCC). A specialized RoRo vessel primarily using fixed decks to park and transport cars.
The capacity of PCTCs and PCCs is measured in “car equivalent units” (CEUs), which helps gauge the maximum number of standard-sized cars they can carry. Before the advent of PCTCs and PCCs, conventional cranes were used to load and discharge new cars one by one, proving to be time-consuming and labor-intensive and prone to damage. The first dedicated car carriers emerged in the mid-1960s using simple ramps to drive cars on and off the handful levels of car decks. These early PCCs had a capacity of around 1,000 CEU. By the early 1970s, PCCs with a capacity of about 2000 CEU entered the market capable of loading 250 cars per hour. Since then, PCTC and PCCs have grown in size to benefit the most from economies of scale in ship size.
Modern PCTCs and PCCs are often large, box-like ships with relatively flat sides, optimized for maximizing interior cargo space rather than hydrodynamic performance. This design is distinctive in the shipping world and makes PCTCs easily recognizable. Capacities can range from less than 1,000 CEU for the smallest units to 9,100 CEU for the largest ships afloat. The Aurora Class vessels of Höegh Autoliners were launched in 2024 with dimensions of 200 meters long, a beam of 38 meters and a capacity of 9,100 CEU. These vessels typically have multiple decks, sometimes as many as 12 to 14, which are stacked to fit as many vehicles as possible. Lashing points are provided on each deck for fastening vehicles. The decks are connected by ramps, allowing cars and trucks to be driven on and off the ship easily. Some decks may be adjustable in height to accommodate vehicles of different sizes and heights (i.e. hoistable decks).
The length of the largest RoRo vessels currently in operation reaches 200m. In the coming years, even longer PCTCs will enter the market. For example, Wallenius Wilhelmsen has ships of 11,700 CEU on order, with deliveries starting in late 2027. These ‘Shaper+’ Class vessels count 14 decks and measure 238m length overall (LOA) with a beam of 40m. The ‘Shaper+’ class is an adaptation of the original ‘Shaper’ Class with a unit capacity of 9,300 CEU (12 decks; 228m LOA and a beam of 38m; first deliveries in 2026).
The scale increases in vessel size go hand in hand with the transition to a more environment-friendly ship design and the use of greener bunkers such as LNG, methanol and ammonia. The number of methanol-capable and ammonia-ready vessels is growing. RoRo operators are also testing vessel designs equipped with various sorts of steel sails or rotor sails to reduce fuel consumption at sea. Other innovations in PCTC design include the use of a rounded bow shape to minimize wind resistance and reduce CO2 emissions (e.g., FLEXIE series car carriers of MOL), and the fitting of high-efficiency solar panels on the roof (e.g., Drive Green Highway of K-Line, 200m long, 38m wide, 7,500 CEU).
PCTCs and PCCs are commonly used by automotive manufacturers and shipping companies to move large quantities of vehicles across oceans and between major ports. PCTCs are integral to the global automotive supply chain, linking major vehicle manufacturing hubs in Japan, South Korea, Europe, China, and the United States to consumer markets worldwide. Global Shipping companies such as Wallenius Wilhelmsen, MOL, Höegh Autoliners, and NYK Line operate large PCTC fleets to support the global automotive industry. The nationality of the largest PCTC fleets tends to correspond to countries with substantial car exports, such as Germany, Japan, and South Korea. Further, some car manufacturers, such as the Chinese Build Your Dreams (BYD), are developing their own dedicated PCTC fleet.
B. ConRo Vessels
ConRo vessels have mixed capabilities to carry both vehicles and containers, making them more versatile in cargo handling. ConRo ships are designed with container stacking on the upper decks (with or without cell guides), which are open and structured like traditional container ships. The lower decks often include ramps and are enclosed to protect the RoRo cargo. ConRo vessels are typically deployed on routes where ports can handle both RoRo and containerized cargo, often in regions like the Caribbean, the Mediterranean, and parts of Europe. These vessels benefit shipping lines by reducing the need for separate RoRo and container vessels on specific routes, making operations more cost-effective.
C. RoPax Vessels
RoPax vessels are hybrid ships that combine the features of Roll-On/Roll-Off (RoRo) vessels with passenger (Pax) transportation capabilities. Essentially, these vessels are designed to carry both vehicles and passengers. Several RoPax vessels include passenger facilities such as seating areas, cabins, dining areas, and amenities. Facilities can range from basic to luxurious, depending on the route and distance. Some RoPax vessels feature full-service amenities like restaurants, entertainment areas, and private cabins. For shorter routes, simpler accommodations are more common, focusing on seating and essential services for a comfortable trip.
RoPax vessels are configured to balance both passenger and cargo capacity, with a flexible allocation that allows the number of vehicles and passengers to be adjusted as needed. RoPax vessels are commonly used on shorter routes where passengers may travel with their own vehicles, such as across the English Channel, the Baltic Sea, or in the Mediterranean. Routes in Japan, South Korea, and across the South China Sea also employ RoPax services to connect islands and coastal cities. Overall, RoPax vessels provide a critical link for both people and goods, especially in coastal areas and island regions where other forms of transportation may be limited.
RoPax, as well as PCTC and PCC vessels, tend to be top-heavy. Sloshing flood water can destabilize the ship, therefore requiring watertight ramps and the compartmentalization of the hold using watertight steel doors. Safety regulations for the design and operation of RoPax vessels have been tightened after some major ferry disasters, such as the 1987 capsizing of the Herald of Free Enterprise off the coast of Zeebrugge (Belgium), killing 193 passengers and crew, and the Estonia, which sank in 1994 en route from Tallinn (Estonia) to Stockholm (Sweden), killing 852 people onboard.
2. Key segments of the RoRo market
A. The Shipment of New Cars and Vehicles
The RoRo market relies heavily on the automotive industry, with the shipment of new cars and vehicles constituting the most significant segment of the RoRo market. Global deepsea seaborne car trade grew by 17% to reach 23.7 million cars in 2023 (figures from Clarksons Research). Chinese exports are surging reaching more than 4 million cars in 2023, a development that is particularly affecting China- Europe volumes. In 2023 and 2024 European ports were overflowing with imported electric vehicles (EVs), especially from China, partly as manufacturers shipped cars before the new EU import tariffs on Chinese EV manufacturers became effective in mid-2024. The EU applies additional duties of 17-38% from the start of July 2024, on top of an existing 10% tariff. Chinese vehicle exports to Europe reached 1.3 million in Q1 2024, a 33% increase year-on-year. This surge in imports turned car terminals in major European car-handling ports such as Zeebrugge and Bremerhaven into vast car parks. In addition, the terminals faced a shortage of truck drivers and transport equipment. Other markets are also impacted by increasing trade barriers. The US imposed a 100% tariff on Chinese EVs starting on the 1st August 2024. To avoid tariffs, large Chinese car manufacturers such as BYD are considering to set up assembly plants in the EU’s Customs Union and Mexico.
To cope with the lack of RoRo capacity to transport vehicles, the orderbook reached a record level in 2023 with 80 vessels on order, representing a capacity of 677,000 CEU or 37% of the existing fleet capacity. Large Chinese car brands such as BYD are constructing their own PCC fleet. By 2028, Chinese companies are expected to control about 9% of the PCTC and PCC fleet.
Despite the surge observed in the past few years, RoRo shipping activities and rates in this market segment remain volatile, influenced by fluctuations in fuel prices, geopolitical tensions, trade policies, and vehicle sales. The market also follows seasonal trends tied to vehicle production cycles, sales peaks, and the launch of new car models. The shipment of new cars is affected by changing consumer preferences, especially the rising demand for personal vehicles by a growing middle class in developing countries and the rise of Electric Vehicles (EV) and hybrid-powered cars. Particularly, the Asia-Pacific region is witnessing a strong upward trend in car sales as a result of an expanding middle class and growing urbanization. The Asia-Pacific region is expected to increasingly dominate the new car shipping market segment, with China, Japan, and South Korea being major contributors.
The maritime transportation of new cars is getting more segmented, with container shipping lines trying to attract part of the market by offering containerized transport solutions for new cars. Among the PCTC operators, we find very large companies such as Nippon Yusen Kaisha (NYK), MOL, Eukor Car Carriers, Cosco Shipping or Wallenius Wilhelmsen, but also a broad array of smaller niche operators and manufacturer-linked operators (such as the Chinese EV producer BYD). Car manufacturers have developed strategic partnerships with car carrier operators, often extending to terminal operations in ports. For example, International Car Operators (ICO) is a 100% subsidiary of NYK that operates two very large car/RoRo terminals in the Belgian port of Zeebrugge and one mega terminal in Antwerp. Through ICO, NYK offers its vessels and the wider automotive industry a strong hub-and-spoke concept in relation to the European car market.
PCTC (Pure Car and Truck Carrier) and PCC (Pure Car Carrier) vessel types are the workhorses in this market segment. While the deepsea RoRo market remains very important, the intra-regional short-sea RoRo market is expanding, particularly in Europe and Asia. These short-sea services are often served by ConRo vessels. Vessel utilization rates are critical to profitability, as RoRo vessels must maximize their deck space by carrying the highest number of vehicles per trip.
With the rise in electric vehicle (EV) production, RoRo carriers are adapting to transport these vehicles safely, as EVs come with unique handling requirements, particularly concerning battery safety and fire hazards. The increasing need for efficient new car transportation, coupled with the growing demand for EVs and their batteries, is fueling the demand for specialized car carriers.
Like other shipping sectors, RoRo operators face increasing pressure to reduce emissions. Compliance with IMO and other regulations on sulfur emissions, CO₂ reduction, and alternative fuel use affect operating costs and fleet modernization. The RoRo market has seen improvements in vessel design, fuel efficiency, and automation. The development of mega-RoRo vessels allows for increased capacity and better economies of scale, while digital tracking systems improve logistics transparency.
B. The Shipment of Second-Hand Cars and Vehicles
The second-hand car shipping market has grown significantly over the past decade, driven by a robust demand for pre-owned vehicles and increasing international trade.
About a quarter of the world’s population lives in countries where at least half of the cars are imported used cars. The U.S. remains a major exporter, with popular destinations in Latin America, the Middle East, and Africa. Ports in Texas, Florida, and California are common hubs for exporting vehicles. Japan is known for exporting well-maintained used cars, especially to Africa, the Caribbean, and Southeast Asia, thanks to favorable Japanese regulations for exporting used vehicles and a high rate of car replacement. China is becoming a major exporter thanks to the government policy launched in 2019, allowing used car exports for the first time.
In Europe, countries like Germany, the Netherlands, and Belgium are significant exporters to Africa and Asia. These are large markets for used cars, especially for countries with limited access to new vehicles. UAE often serves as a transshipment hub for vehicles headed to East Africa. The second-hand car flows to Africa have evolved strongly in the past years. While in the past vast amounts of low-quality end-of-life vehicles moved to Africa, African markets have matured and are now demanding younger middle segment and luxury second-hand cars. Western Europe, North America, and parts of Asia remain the main importers of luxury pre-owned vehicles.
OECD/ITF launched the Used Vehicle Dashboard which allows to explore statistics on the international import and export of used passenger cars.
Most second-hand vehicles are shipped with RoRo and ConRo vessels. RoRo is efficient and cost-effective, especially for large volumes. Still, the containerization of cars is on the rise primarily for high-value or sensitive vehicles. Although rare for used cars due to high costs, air freight is sometimes chosen for urgent deliveries or high-end vehicles or specialty cars such as expensive oldtimers and hyper- and supercars.
The second-hand shipping market is increasingly relying on the use of digital platforms for tracking and documentation. These digital solutions increase transparency, reducing the risk of fraud and streamlining customs clearance. Specialised companies are offering insurance and financing for shipped used vehicles, and facilitate the purchasing and shipping process for international buyers.
The second hand vehicle market is heavily impacted by exchange rate changes and existing tariffs and regulations. For example, the implementation of stricter emissions regulations in a country or region can significantly affect the export of the ‘dirtier’ second-hand cars from this country or region. Many countries are tightening emissions standards and may restrict the import of older vehicles that don’t meet these standards, especially with the growing push for electric vehicles. Increased shipping costs and delays influence the final price and availability of used cars in many markets. For the foreseeable future, EV exports to emerging economies will remain marginal compared to those of petrol- and diesel-powered vehicles. In the longer term, the expected growing export of second-hand EVs will introduce new logistical needs, such as specialized handling and battery transport requirements.
C. Accompanied and Unaccompanied Trailers
The short-distance RoRo, RoPax and ConRo services market can involve accompanied transport, where truck-trailer combinations go onboard with drivers, or unaccompanied transport, where trailers make the crossing without drivers. In the latter case, the trailer is positioned onboard using a special tractor, which allows for more capacity, but requires more handling at the terminals. It is also possible for a 40 or 45-foot container to be positioned on a chassis and then loaded on board, which allows ferries to support containerized trade.
The vessel capacities for accompanied and unaccompanied are typically expressed in lane meters or truck units. The capacities tend to vary greatly. For example, in Europe, the large units deployed on the English Channel and parts of the Baltic can handle 120 trucks per voyage. In contrast, vessel capacities on services in smaller markets (e.g. the Irish Isles) tend to be more limited.
D. RoRo Niche Markets
Next to the main segments discussed above, the Roro market covers quite a few niche segments.
One of the segments relates to rail or train ferries: A rail or train ferry is a ship designed to carry railway wagons as well as their cargoes and passengers. The main cargo deck is equipped with railway tracks. The railway wagons access the vessel via bow or stern ramps. The world’s first train ferry service was launched in 1851 operating a short voyage of 9 km across the Firth of Forth in Scotland. It closed in 1887 after the opening of Bouch’s Tay Rail Bridge. Train ferries operate in a wide range of countries around the world. An example involves the train ferries service crossing the Caspian Sea connecting ports in Kazakhstan and Turkmenistan to Baku in Azerbaijan.
3. RoRo Terminals
There are several types of RoRo terminals, each focused on specific market segments.
First, there are terminals equipped to handle RoRo and RoPax vessels (ferries), which operate on end-to-end type services with a port of call at either side of the route. Terminals used for ferry crossings are designed for the fast turnaround of the vessel. The apron is usually equipped with fixed ramps. Simultaneously, the yard includes extensive parking facilities for trucks and cars waiting to board and an administrative building, including a ticketing office and customs office if applicable. A good example of a large ferry terminal complex is the Calais Ferry Terminal on the French side of the English Channel. The terminal specializes in cars, accompanied trucks, and passengers making the crossing to the UK.
The required shape of the quayside of a RoRo terminal depends on the type of ramp the visiting vessels have. In most cases, a straight quay wall is sufficient. However, when the vessel uses a bow or stern ramp, the quay wall might have a small outward extension to facilitate vessel handling.
Second, there are terminals specialized in handling new (and second-hand) cars and rolling materials. The deepsea and shortsea car carrying trade is an important segment in the RoRo market. On long-distance routes, operators deploy Pure Car and Truck Carriers (PCTC) with capacities of up to 9,100 CEU (car equivalent units). A number of large car ports have successfully combined deepsea services with intra-regional shortsea services. The resulting hub-and-spoke network configuration is combined with growing local clusters of automotive logistics companies. While road haulage is by far the dominant mode of inland transport for car terminals, rail, and barge, particularly in the Rhine and Yangtze river basins, play an ever more important role in securing the inland access of the larger car ports.
New car terminals usually cover large surfaces. Vans bring dock workers on board, after which they each pick a car to be driven down the ramp and parked on a designated spot in the yard. The yard is designed as a large parking area with small distances kept between cars. Specific parking configurations are deployed to maximize the productivity of terminal land without limiting access to the parked vehicles.
A growing number of terminals install multi-storey car parks to increase the capacity of the existing terminal area. These car parks typically count 5 to 8 storeys and have an extensive internal ramp system to facilitate car movements.
Car terminals are usually equipped with one or more Vehicle Processing Centers (VPCs) or PDI centers (Pre-Delivery Inspection) where the cars are prepared to be dropped off at the dealers, or directly with the customer. The activities in these centers are performed at the request of the car manufacturer or importer. They can include car inspection, repair of transport damages, installing car options and accessories, dewaxing, cleaning, removing the transport wrap or foil, and software preparation or update. Occasionally, car terminal operators prepare rental or fleet cars for the B2B market.
Advanced terminal operating systems (TOS) assist the terminal manager in tracking individual vehicles during their arrival at, stay, and departure from the terminal.
Quite a few car terminal operators are investing in eco-friendly projects such as onsite windmills generating green electricity, large battery storage systems, onshore power supply (OPS), the use of electric or hybrid yard equipment and alternative fuel testing. To cater to the increasing electrification of cars and the rise of fully electric vehicles (EVs), a number of larger terminals have invested in battery charging facilities at the yard, often powered by green energy such as wind turbines.
Many car and truck terminals combine RoRo activities with break bulk or container handling and storage. This is particularly the case when the terminal is visited by ConRo (container/roro) ships.
