RoRo vs Container Shipping: Which is Cheaper?

RoRo (Roll on roll off) and containers are the two most commonly used modes of ocean freight transportation. Both have their advantages and disadvantages in terms of cost, suitability for different types of cargo and ease of loading/unloading. In this article, we take a detailed look at RoRo vs containers to determine which mode of shipping tends to be cheaper Car Transport.

Cost Factors That Determine Pricing

Freight Rates

• Freight rates for RoRo are typically lower than container rates on a per-unit basis. This is because RoRo ships are able to transport more cargo volumetrically per voyage than containers on container vessels.
• However, container freight rates are more standardized globally and available for most trade routes compared to RoRo which has fewer dedicated vessels.

Cargo Handling Charges

• Containers involve additional charges for stuffing/unstuffing cargo, dutides for container usage, depot charges for storage etc. These can add 15-20% to the overall shipping cost.
• RoRo mainly involves driving cargo onboard/offboard with little additional handling charges.

Fuel Costs

• Containers are more fuel efficient due to container ships being designed specifically for container stacking. However, RoRo ships can also optimize fuel usage based on load balancing.

Customs Clearance Charges

• Containers typically attract more customs clearance related charges and inspections compared to RoRo where entire truck and trailer undergo a single check.

Types of Cargo – Suitability and Associated Costs

• RoRo is more suitable and cheaper for rolls (coils, sheets etc.), vehicles, machinery and project cargo that can simply roll-on and roll-off the vessel.
• Containers are more suited for general dry or refrigerated cargo in boxes, crates, pallets etc. that can be easily stuffed into standardized boxes.
• However, oversize or heavy cargo that requires additional lashing/securement inside containers may end up being more expensive by container than by RoRo.

Ancillary Cost Considerations

• For RoRo, terminal/stevedoring charges tend to be lower than containers where intricate cargo plans are required for coordinating container stacking/loading operations.
• Additional equipment costs like chassis, terminals for containers add to the overall door-to-door cost. Whereas RoRo requires no such investments.
• For import shipments, containers often have 30-60 days free storage at destination container yards. But beyond this storage charges erode any initial cost advantage versus RoRo.

Car Transport – Summing It Up

We can summarize that RoRo transportation tends to be more cost effective for certain types of cargo, especially roles, machinery, vehicles and project cargo due to:

• Lower freight rates per unit
• Minimal ancillary handling costs
• No additional equipment investment requirements
• Less customs documentation

However, containers are more suitable for general dry or refrigerated goods and have a wider network availability. For some types of overdimension cargo, RoRo may still work out cheaper despite higher freight rates. Overall both options have merits depending on the specific shipment characteristics

So in conclusion, while container freight rates are generally standardized, RoRo often ends up being the lower total cost solution when all factors are taken into account, especially for suitable types of cargo. Understanding the total landed costs is important for determining the most cost effective solution in each individual shipment scenario.