Ro/Ro business growing in turbulent times

Ro/Ro shipping is poised for growth, despite high tariffs and evolving trade policies.

Roll-on/Roll-off (Ro/Ro) shipping is a vital part of global trade, moving wheeled freight, ranging from the heavy equipment needed to build roads and the vehicles that travel them. In 2026, analysts predict that the industry will remain stable, with shipment volumes comparable to 2025. However, volumes are only one aspect of the industry, as a variety of factors place pressure on margins and profitability.

High tariffs, shifting trade policies, and new regulations require Ro/Ro shippers to adjust their operations, often at a high cost. Stricter requirements for identifying, reporting, and reducing greenhouse gas (GHG) emissions add further pressure on operational costs.

The increasing share of electric vehicles (EVs) in Ro/Ro shipments has a mixed effect on the industry. Although EVs can boost shipping volumes, they also introduce distinct challenges. Safety protocols for transporting EVs are being adopted, in part, to offset potential damage risks that are 10% higher than those for other Ro/Ro shipments, according to industry analysts.

As Ro/Ro shippers look to increase volumes, they are also focused on efficiency to offset higher operating costs. Doing business with ports that are invested in Ro/Ro facilities at many US ports can lead to greater efficiency for Ro/Ro shippers. Several US ports are investing in Ro/Ro infrastructure, a positive step expected to streamline dock operations. In addition to aligning with the ports best suited to meet their needs, Ro/Ro shippers are forming partnerships with transportation and logistics providers that add value by coordinating more effectively with stakeholders and managing the many aspects of transporting Ro/Ro shipments.

Tariffs Slam Ro/Ro Shippers

The Ro/Ro industry is subject to tariffs that can be substantial, up to 25% on automobiles imported into the United States from countries other than Canada or Mexico. Depending on their country of origin, automotive parts used in manufacturing are also subject to high tariffs.

The timing of the application of a tariff is also a factor. Because tariffs are assessed at the port of entry, Ro/Ro shippers face immediate cost increases. If those costs are passed on to buyers, end-user demand can drop sharply. In 2025, there was a 7% decline in US car imports, and larger declines are expected in 2026. The price of automobiles has increased by thousands, raising the average car price to $48,500 or more. Manufacturing more autos in the US can be a solution. However, auto producers are already operating at high levels, so domestic output cannot replace lost imports in the short term.

Tariffs can also result in volatility in volumes. Some original equipment manufacturers (OEMs) increased shipments ahead of the implementation of tariffs imposed in April 2025 to avoid added costs, causing surges at US ports followed by steep declines.

Some operators are shifting away from their most profitable trade lanes and reallocating cargo to regions less affected by policy changes or political instability. Any significant change to trade routes can cause supply chain disruptions and potentially increase the cost of transporting goods.

The impact of tariffs does not affect all trade partners to the same degree. Andrew J. Abbott, President and CEO of ACL, a transatlantic carrier for both Ro/Ro and other cargo, said, “While transatlantic car trade is down, Chinese car exports were up 57% in the first quarter of 2026.”

He noted that, “The tariffs and antagonistic US foreign policy have certainly not helped our business at ACL, but they appear to be hurting US exporters worse than importers so far.”

Ongoing global unrest is one factor behind Wallenius Wilhelmsen’s recent decision to lower its 2026 earnings outlook. The company said the Middle East conflict, although not directly aimed at Ro/Ro shippers, is affecting fuel markets and could weigh on second-quarter earnings.

Ro/Ro Regulations Add Complexity to Ensuring Compliance

In addition to an evolving trade environment, the Ro/Ro shipping industry is also facing new regulations and standards from a variety of agencies. The Ro/Ro industry is governed by a layered framework of international conventions, national laws, and operating standards intended to ensure vessel safety, cargo integrity, crew competence, and regulatory compliance.

In January 2026, the International Maritime Organization (IMO) introduced new safety rules. Ro/Ro operations must also comply with the Occupational Safety and Health Administration (OSHA) regulations in the United States. These standards govern areas such as cargo loading and security, adding to the industry’s compliance requirements.

This combination of multiple requirements enforced by a range of regulators adds complexity for Ro/Ro shippers, requiring specialized knowledge in maritime law, environmental compliance, vehicle safety, and customs procedures. Non-compliance can lead to delays, fines, or safety incidents, making the regulatory environment both strict and complex.

Carbon Emission Guidelines Add Operational Pressures

In 2026, the Ro/Ro industry faces increased compliance and operational pressure from new global and industry-wide carbon emissions standards, specifically the ones developed by the Global Ro/Ro Community in collaboration with the Smart Freight Centers (SFC). In 2025, the GRC implemented an industry-standard GHG emission intensity calculation method for deep-sea Ro/Ro ships.

These standards create a consistent way to measure emissions from Ro/Ro operations using voyage-specific data such as fuel consumption, distance traveled, and cargo volume. The data supports annual reporting and trade-lane benchmarks for performance comparisons. Although the United States has not adopted a Ro/Ro-specific emissions cap, the IMO’s 2023–2030 greenhouse gas reduction targets and clean energy incentives under the Inflation Reduction Act are making low-carbon shipping more attractive to Ro/Ro operators.

Analysts state that these carbon emissions standards are moving Ro/Ro from a fragmented reporting landscape to a regulated, transparent, and performance-driven sector, with significant operational and financial implications for US Ro/Ro operators in 2026.

With GHG emissions being a high priority for many stakeholders in the Ro/Ro market, shippers have an added incentive to make sustainability a priority. ACL, a transatlantic transporter of general cargo and Ro/Ro shipments, advocates even more stringent requirements.

“We were hoping for more strict enforcement of the existing IMO regulations to weed out the smoke-spewers from the trade. We are already compliant with the strictest IMO regulations,” said Abbott, President and CEO of ACL.

EVs Add Volumes and Specialized Handling

Growing sustainability goals are increasing the use of electric vehicles (EVs). Ro/Ro shipping is one of the most efficient ways to transport them, but the rise of electromobility is creating new requirements for maritime transport. Shipping EVs by Ro/Ro is subject to specialized international safety guidelines, carrier technical specifications, and clear documentation requirements, including fire monitoring.

Many shipping companies require a reduced battery charge level for the Ro/Ro transport of an electric car. In practice, this is often between twenty and fifty per cent. A low state of charge reduces possible risks in the event of a battery defect. It also makes handling at ports easier, because the electric vehicles can be driven.

Some shipping companies use special parking rules for electric vehicles. These can include designated deck areas for electric vehicles, greater distances between vehicle groups, and additional fire monitoring. Ro/Ro transport of EVs is considered safe overall; some unique risk factors include damaged batteries. Any damage to an electric vehicle can result in problems during transport. Structural damage near the battery pack can result in shipping companies’ refusals to load the vehicles.

Port Expansions Support Faster and Safer Cargo Movement

Several US ports are investing in infrastructure to accommodate Ro/Ro shipping. The port of Jacksonville, Florida, JAXPORT, which recently celebrated the completion of its new state-of-the-art vehicle processing facility. Spanning more than 380,000 square feet across seven buildings and 88 acres. The facility is designed for efficiency, with the ability to process approximately 4,000 vehicles per week, nearly double the number of vehicles that could be processed in the previous facility.

While many automakers will benefit from this expansion, Southeast Toyota Distributors, the world’s largest independent Toyota distributor, said the new facility will support improved service to existing customers and position the company for continued growth. The port of Galveston, Texas, is investing $106 million in 2026 to expand breakbulk and Ro/Ro capacity at its West Port Cargo Complex.

In May 2026, the Port of Charleston, South Carolina, approved a major expansion of Ro/Ro operations at its North Charleston Terminal. The project will convert an adjacent former paper mill site into a Ro/Ro facility, with demolition beginning in 2026 and terminal preparation scheduled to start in 2027. The expansion will add rail upgrades and new Ro/Ro capabilities, with completion expected in 2028

For Ro/Ro shippers, Ro/Ro infrastructure investments like these often support faster, safer, and cheaper cargo movement, greater capacity to handle growth, and more reliable service. Ports that invest now can better serve customers during peak demand, supply chain disruptions, or market expansion.

Partnerships with Transportation and Logistics Providers Add Value

Transportation and logistics providers with expertise in Ro/Ro shipping are assisting companies with the coordination of documentation, setting appointments, and managing disruptions throughout the process. K Line (Kawasaki Kisen Kaisha, Ltd,) a Japanese shipping and transportation company focuses on customer service. The company provides dedicated customer service assistants available 24/7.

“Ro-Ro is a very specific business, and we work with clients vertically from the OEMs to producers of finished goods,” said Homer Crane, Vice President, North America Sales, K Line Americas, Inc.

As part of its standard procedures, the company acts as an extension of its clients, helping to educate those who are new to the business and evaluating options to determine the best fit for each client.

“From the land side to the ship and the ultimate delivery, we work with customers to help them refine their practices to improve supply chain efficiency,” said Crane.

The Ro/Ro shipping industry is navigating and evolving in a regulatory and trade policy environment. However, the segment is poised for continued growth with new sources of revenue and improved port infrastructure that will ultimately drive efficiency.