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Need for renewal

The RoRo market is struggling with an aging fleet and competition from containers and road transport.

In our Shortsea15 conference in Copenhagen the roro marked was focuced in many of presentations. Per Westling, CEO of Stena addressed the shortsea RoRo and RoPax market, while Anders Refsgaard, DFDS talked about the Baltic RoRo market. (See all presentations here). 

RoRo trends

Anders Refsgaard, Head of Business Unit Baltic Sea for DFDS, presented the main trends and expectations for the RoRo market in the Baltic Sea. Unit costs are focused and they must be reduced due to increase operation costs for shipping lines. There is increased interest in shipping of unaccompanied trailers due to increased driver and truck costs. DFDS expects that there will be fewer and larger RoRo hubs. Technological advances in digital services, bar codes and scanners will change the market and there will be increased customer focus on value added services.

Challenges

RoRo shipping lines are faced with ​a range of challenges. The RoRo tonnage is too small and old and costs are increasing. Labour costs in East-Europe are increasing and this may affect the production pattern. Russia is a dark horse with no signs of improvement. The EU Sulphur Directive is driving up costs, but rate levels have so far been saved by lower bunker prices. Container transport is gaining market share from RoRo due to higher ship capacities and lower unit costs.

Presentation made my Anders Refsgaard, Vice President of DFDS:

 

 

  
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