[Exclusive] 'Clearing the Blocked Export Channel' Renault Korea to Deploy Container Ships Starting May

Responding to Additional 10% Export Volume Orders
Difficulties Due to Short-Term Contract Handling↑
Possible Response Through Vehicle Fixed Testing and Busan Plant
Performance Improvement Through Exports with No New Cars This Year

Renault Korea Motors, which had been struggling with exports due to a shortage of car carriers, is resolving the issue by deploying container ships. Although there were concerns about quality degradation when using container ships instead of dedicated car carriers, the company decided to proceed after a two-month trial. With no new models this year, Renault Korea plans to boost its performance through exports.

According to a report compiled on the 9th, Renault Korea will export about 10% of its total export volume using container ships starting this month. A company official stated, "We have had several discussions with relevant government departments since the beginning of this year."

According to data from the Korea Automobile Manufacturers Association, Renault Korea's total exports last year amounted to 117,020 vehicles. About 10,000 of these are expected to be transported by container ships until the shortage of car carriers is resolved.

Until now, Renault Korea was unable to properly respond to sudden additional orders that were not pre-contracted. Car exports are usually carried out using dedicated car carriers, where vehicles are driven directly onto the ship. Since COVID-19, there has been a shortage of car carriers. According to the Ministry of Oceans and Fisheries, the number of car carriers worldwide decreased from about 770 just before COVID-19 to around 750 recently.

Transportation costs have also risen. The cost of a 6,000 CEU-class carrier, capable of carrying 6,000 cars, was $20,000 per day (approximately 26.3 million KRW) in 2021 but surged to $100,000 per day in the second half of last year. Hyundai Motor Group resolved export transportation issues by signing long-term contracts with its subsidiary Hyundai Glovis. However, KG Mobility and Renault Korea, which have handled export volumes through short-term contracts, faced difficulties due to soaring logistics costs and a shortage of dedicated carriers.

Used cars have previously been exported using container ships, but it was customary to use dedicated carriers for new cars. Unlike dedicated carriers, container ships cannot properly secure vehicles. Additionally, there are extra costs for transporting vehicles to ports such as Busan. However, Renault Korea is reported to have developed a method to secure vehicles inside containers after a two-month trial. Moreover, since vehicles manufactured at the Busan plant are transported to Busan Port, transportation costs are actually lower.

With no new models this year, Renault Korea plans to offset poor sales performance through exports. In April, the company exported only 7,779 vehicles. This is a 40.1% decrease compared to March (12,985 vehicles) and a 98.1% drop compared to the same period last year (17,990 vehicles). The company has explained that the main reason for export sluggishness was the lack of dedicated carriers, which prevented shipments despite demand. Container ship transportation costs have recently hit rock bottom. Therefore, if exports using container ships succeed, cost reduction effects can also be expected.

This content was produced with the assistance of AI translation services.