Factors at Play in RoRo Vessels Selling

RoRo vessels are ships that are used to carry wheeled cargo like automobiles, trucks, trains etc. An acronym for Roll on and Roll off, the RoRo vehicles are named thus as the cargos here are loaded and unloaded by way of rolling on and rolling off through built in ramps.

Kinds of RoRO vessels generally found are day and night ferries, pure trailer vessels and trailer ferries with accommodation for drivers. For the RoRo vessels that cross the oceans exclusively carrying cars and trucks are known as Pure Car Carriers (PCC) and Pure Truck & Car Carriers (PCTC) respectively.

roro vessels for sale

Unlike other cargos, the cargos of RoRo vessels are measured in lanes in metres (LM). With a slight variation to RoRo vessels Ropax vessels are made. Here passenger accommodation is added.

Due to its easier loading and unloading process and better integration capacity with other transport development the RoRO vehicles are normally speedier.

The RoRo industry has shown balanced responses to market demands inspite of the demands of quality service at right frequency and degree of capacity. The global RoRO market has become more fragmented with more number of small capacity of exporters coming in.

From various worldwide surveys done on the demand of RoRo shipping services, the decision making factors can be categorized as the following:

Quantitative factors:

  • related to route ( frequency, transit time, capacity, number of calls)
  • factors related to costs (freight rates, insurance, etc.)
  • service factors (reliability and delays, risk of damages and losses, emergency handling capabilities, documents and ability of tracing etc.).

Qualitative factors:

  • tradition
  • flexibility
  • measure of responsiveness to flaws
  • information available during transport
  • cooperation and personal contact
  • ease of administration

The specific choice factors that work in the shipping services, as per data gathered from large number of shipping services companies are, long terms commitment in the specific market, willingness of carriers for long-term contract, technical characteristics of the vessel, reputation regarding damage to cargo, service frequency, agreeability to negotiate flexible contracts for variable circumstances, freight rate, reputation of punctuality, transit time, marketing activities and problem responsiveness.

As port plays a big role in shipping services the following attributes of ports control demand of services: proximity of port to the point of production or delivery, costs of port, reputation for strike record, cargo facilities, traditional links with the shipping line and its promotional activities, speed of port operations, port accessibility.

Their exists a dilemma in prioritizing the port or the vessel when choosing a RoRo vessel service. Some believe that the port is the chief deciding factor and some think it is the carrier. Apart from that, individual perception of shipping managers and buyers has a big role in final decision making of buying a service. It has been generally noted that shipping managers have a conservative approach and only take calculated risk and that too occasionally. In selection of carriers and ports they tend to go for personal contacts and perception formed according to their experience in the sector and abilities. Actual data of performance generally has a secondary influence in the decision making.

As RoRo vessels market comprise of a big chunk of the shipping business, the decision making process here is based more on individual perception and conservative risk averse behaviour pattern than on actual findings.

Cruise and Ferries for Sale

Cruise sailing is primarily for experiencing luxurious vacation while Ferries are used for general transportation needs. The Cruise and ferries industry is rapidly growing. In the year 2016 the cruise industry has drawn an estimated 22 million passengers across the world. The global cruise market has earned $39.6 billion within year 2008 to 2015. The ferry industry across nations, commutes around 2.1 billion passengers per year in addition to 250 million vehicles and 32 million trailers. It is considered as one of the safest mode of transportation.

ferries for sale

Some of the Important Pointers in Cruise and Ferries Sale

Ferry and Cruise vessels are sold on the factors like,

Overall rating by experts and user, Year of make, Class, Length over all (LOA), Breath overall (BOA), Cruise type (Deep sea, Coastal, River), PAX or Passenger capacity, Beam, Draft, Crew to guest ratio, Speed, Amount of elbow room, suitability for family with age specific facilities, Space for day time activities, Cabin, Deck plan etc.

According to CLIA Travel Agent Survey statistics, factors working most for cruise booking are: Value/Price (86,6%), Itineraries (77,7%), Cruise line reputation (76%), Departure port (61,3%), and Amenities (39,3%).

Factors that affect business of cruise and ferries are weather conditions, social unrest, the economy, competition, political instability and exchange rates.

The domain of ship sale demands thorough knowledge of its terminologies. To interest potential buyers, the ship design, its purpose and construction need to be communicated with clarity. In addition to informing the routes and probable meteorological occurrence, it is imperative that clients are told about size, capability and specialization of the ship building yards.

Registration of ship are of two types. Registration of owner’s own country or offshore registration. Both of them have their pros and cons and a ship broker has significant role in modifying such registration. Each vessel needs to be classified and their sale is depended on it. Here also a broker can have a role in changing the classification of a ship.

In recent times the cruise and ferry industry is focusing on energy efficient operations. The customers demand clean and green operations. Ways like, energy efficient ports, rerouting in stormy weather, regular maintenance to control wear and tear, propeller polishing, upgradation of engine and other components have a big impact on fuel cost and thus play significant role in greener solutions.

Some of the Challenges in the Cruise Business

1. Attracting first time travellers as passengers are prone to select their first choice repeatedly

2. Huge vessels with overcapacity give enormous discounts pose difficulty for other businesses

3. Set perceptions on cruise as being expensive and boring

4. Air passenger duty has a major impact even on the fly-cruise deals market (discounted flight and cruise packages)

Inspite of challenges, all the huge potential and newer markets developing in Asia and Australia, ferry and cruise vessels for sale will remain a hotbed for serious business. While the giant players occupy big portions of the market, there are many who have strong potential for a good market impact.