The rapid global shift towards electric vehicles is transforming breakbulk logistics, altering established trade flows and introducing fresh risks in the transportation of vehicles by sea.
China has emerged as the dominant force in this transformation, with record-breaking electric vehicle (EV) exports placing significant strain on available shipping capacity. As Chinese manufacturers ramp up production and expand their global market share, demand for specialised ro-ro vessels and breakbulk carriers has surged, tightening the market considerably.
This capacity crunch is having a knock-on effect across the wider freight forwarding industry. Rates for vehicle transportation have climbed sharply, and lead times for booking space on suitable vessels have extended, forcing shippers to plan further ahead than ever before.
Beyond capacity constraints, the nature of EV cargo itself presents unique challenges. Lithium-ion batteries carry inherent fire risks, requiring stricter handling protocols, specialised stowage arrangements, and enhanced safety measures aboard vessels. Insurers are also reassessing risk profiles, which is influencing premiums and coverage terms across the sector.