Imported vehicles are seriously piling up at European ports, turning them into “car parks.” Automakers are distributors are struggling with a slowdown in car sales as well as logistical bottlenecks that make it hard to alleviate the buildup of new, unsold vehicles. From the Financial Times:
Port and car industry executives have pointed to a pile-up of Chinese electric cars as one of the leading causes of the problem, with some companies booking shipping delivery slots without ordering onward transportation. In other instances, carmakers in general are struggling to order trucks because of the lack of drivers and equipment to move the vehicles on.
“Car distributors are increasingly using the port’s car parks as a depot. Instead of stocking the cars at the dealers, they are collected at the car terminal,” said the Port of Antwerp-Bruges, whose port at Zeebrugge is Europe’s busiest port for car imports. “All major car ports” were struggling with congestion, the port added, without specifying the origin of the vehicles.
Some car industry executives said Chinese carmakers were not selling their vehicles in Europe as fast as they expected, which was a major contributor to the glut at the region’s ports.
“Chinese EV makers are using ports like car parks,” said one car supply chain manager.
Some Chinese brand EVs had been sitting in European ports for up to 18 months, while some ports had asked importers to provide proof of onward transport, according to industry executives. One car logistics expert said many of the unloaded vehicles were simply staying in the ports until they were sold to distributors or end users.
“It’s chaos,” said another person who had been briefed on the situation.
Cui Dongshu, the secretary-general of the China Passenger Car Association, told FT that inland shipping into European markets is proving difficult for Chinese EV makers.
Emphasising that brands needed to improve their “after sale” services, he added: “[We need to] change the guerrilla warlike car exports, which will throw ourselves into an unfavourable situation.”
BLG Logistics, the company that operates the car-handling terminal at the German port of Bremerhaven, Europe’s second-busiest port for vehicles, said it had experienced longer dwell times at its facilities after Germany’s federal government stopped subsidising purchases of EVs in December last year.
The clogging up of car terminals comes as many of China’s carmakers, such as BYD, Great Wall, Chery and SAIC, are planning an export push to Europe, both to keep their factories in China running and to capitalise on the region’s appetite for electric cars.
Emphasising that brands needed to improve their “after sale” services, he added: “[We need to] change the guerrilla warlike car exports, which will throw ourselves into an unfavourable situation.”
BLG Logistics, the company that operates the car-handling terminal at the German port of Bremerhaven, Europe’s second-busiest port for vehicles, said it had experienced longer dwell times at its facilities after Germany’s federal government stopped subsidising purchases of EVs in December last year.
The clogging up of car terminals comes as many of China’s carmakers, such as BYD, Great Wall, Chery and SAIC, are planning an export push to Europe, both to keep their factories in China running and to capitalise on the region’s appetite for electric cars.
Many Chinese automakers are reportedly building teams in Europe from scratch and dealing with real-world logistical challenges. They’ve also struggled to find haulage companies to prioritize their vehicles since they’re newcomers to the market. One person told the outlet that a “lack of trucks” is a “very common problem.”
A version of this article originally appeared on Jalopnik’s The Morning Shift.