10 April 2025— A new round of tariffs on imported vehicles and components in the United States has dealt a blow to the global automotive logistics industry, putting the long-term relationship between vehicle manufacturers and vehicle carriers to a severe test.
From April 2, the United States will impose a 25% tariff on all imported vehicles, while the second wave of tariffs on auto parts is expected to begin on May 3. The move has caused chaos in shipping schedules, expected market shifts, and forced strategic adjustments throughout the supply chain.
Global rolling vessel (RoRo) carriers — a key role in automotive logistics — are currently facing the risk of reduced shipments. Many operators have adopted contractual clauses requiring the manufacturer to pay compensation if delivery is not reached. However, Lasse Kristoffersen, CEO of WalleniusWilhelmsen, said that the automotive logistics industry has a deep working relationship with the factory, and flexible handling remains at the core of operations.
“If the vehicle still needs to be shipped, we will ship it on contract; if there is no shipment, we will work with our customers to find a solution,” Kristoffersen said at the annual financial briefing. But he also stressed that the step must be reciprocal: “We will not be unconditionally profitable unless we get a relative return.”
Fearnleys Securities predicts that the tariff policy will lead to a drop in US imports, thereby squeezing the profit space for shipping carriers. These effects are already apparent — JaguarLand Rover suspends shipments to the United States, while Volkswagen chooses to store Audi vehicles in U.S. ports to reduce the impact.
Such an “early shipment” strategy has exacerbated congestion in Port Brunswick and Port Baltimore. “We handled about 75 million cars and light trucks last year, of which about 64.1 million were imports,” said a spokesperson for Port Baltimore. “The actual impact of tariffs on freight volumes ultimately depends on whether the shipper chooses to reduce or suspend shipments.”
The impact is not limited to the United States. Global automotive and component logistics may face a prolonged restructuring as other trading nations may levy retaliatory tariffs. WalleniusWilhelmsen said the measures are expected to have an “immediate impact on manufacturers, consumers and markets,” especially in the highly complex global automotive supply chain.
It is estimated that the United States is expected to sell 1,620 million cars this year, of which about 45% of imported vehicles will reach 730 million. Major import sources include Mexico (380 million), Japan and South Korea (260 million), and Europe (100 million). In addition, 61% of the top 45 best-selling models in the United States come from regions outside the United States and Canada.
Traders also believe that this round of tariffs may be just another extension of trade policy volatility. Clarksons' Paal Schjerven said the 25% tariff was a “short-term panic” because the government's policy on the auto tariff issue was unpredictable — such as import tax measures against Mexico and Canada at the beginning of the year, which were soon withdrawn.
Whether this policy will lead to a short-term slowdown or a restructuring of the long-term supply chain remains to be seen. What is certain, however, is that the resilience and resilience of the global vehicle transport industry will again face a major test.
Source: https://www.joc.com/article/tariffs-put-relationship-between-vehicle-manufacturers-carriers-in-spotlight-5979668
