ECG — 2024-04-18
News from ECG
Exports from China hit 1.32 million units in Q1 2024, experts reveal at CALA International Conference as industry gets together to call for best practices to be shared.
The 2024 China Automotive Logistics Association (CALA) conference has just concluded in Shanghai and, for the first time, ECG - the European Association of Vehicle Logistics (ECG) has been in attendance with the aim to share best practices for those automakers in China bringing their vehicles to European shores.
On April 16th, Mike Sturgeon, Executive Director of ECG, participated in the ‘Operation Specification for Loading and Unloading of Passenger Car Containers’, where he shared the latest edition to the ECG Quality Manual — the chapter on ‘Transport of Cars in Containers’. The chapter was specifically translated for Chinese OEMs and highlights best practices followed in Europe for loading and unloading cars in containers. CALA Secretary General, Chris Zuo, thanked Mike and will put a link to the chapter on the CALA website for his members to access.
Sponsored by COSCO, the discussions highlighted that the surge in container prices witnessed during Covid-19 had dropped significantly in 2023 to just $1,000 per container, but that the current Red Sea crisis has led to prices up to $ 5,500 or so now, with tensions unlikely to ease till at least Q4 2024.
Wednesday 17th saw more than 400 delegates tune in to speeches by Chinese government officials such as well-known official automotive analyst and economist Xu Changming, Vice President of The State Information Center. Global new energy vehicle (NEV) sales hit 13.39 m units in 2023, he said, adding that China’s NEV volume accounted for 62% of this! NEVs are defined as pure battery electric vehicles (EVs) and plug in hybrid electric vehicles (PHEVs). Shen Qing, Director of the Internationalization research Department at China’s Automotive Technology & Research Center (CATARC) stated that new car export volumes from China in the first three months of 2024 have now reached 1.324 m units, marking an increase of 33.2%! The next step, he said, was for Chinese automakers to build factories overseas with component makers also now to be pushed into the global supply chains. But he warned of increasing trade barriers especially in the sphere of electric vehicles (EVs).
Latest data from the China Association of Automobile Manufacturers (CAAM) shows that, in March alone, a total of 502,000 units have been exported from China, marking a 37.9% annual increase. Of this, internal combustion engine (ICE) vehicles saw exports of 377,000 units, while NEVs accounted for 124,090 units.
In the first quarter, exports of ICE vehicles have reached 1.017 million units, up 36.3%, while NEV exports are up 23.8% at 307,000 units.
ECG’s Mike Sturgeon took to the stage to highlight that “Europe is complicated.” With 44 countries, over 35 different languages and non-coherent rules and legislation it is imperative in Europe to follow policies of standardisation and best practice guidelines put together by ECG with significant input from the 170 plus members. Sturgeon stressed that securing partnerships with logistics service providers (LSPs) in Europe, and planning ahead to secure capacity at ports and compounds, is key to helping to reduce congestion at both port and inland terminals in Europe.
The messages were well received with comments made later by Chinese OEMs. “We have heard the complaints about too many Chinese vehicles at the ports, going forward we will keep only a small volume at those locations,” said Huang Zhaojun, Head of Global Logistics at XPENG Automobile. “Co-operation is always a better choice,” Marco Yang, Head of Logistics and Assistant Vice President at NIO said, “We need to work on standardization.”
Ambassadors from countries such as Belgium, Mexico, Thailand, Philippines and Poland participated in a panel moderated by independent consultant Louis Yiakoumi, with Wolfgang Göbel, President of ECG, on stage as the Ambassador for Finished Vehicle Logistics (FVL) Europe. “Good preparation is needed to enter European markets,” he said. “Standardization and collaboration is key.”
ECG members in attendance at the CALA International Conference 2024 included COSCO Shipping, GTT Automotive, International Car Operators (ICO) Terminals, MOSOLF, Neptune Lines, Noatum, Port of Antwerp Bruges and the Port of Barcelona.