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European Ports Turned Into Car Parks due...

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  • May 27, 2024
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European Ports Turned Into Car Parks due to EV Low Sales

A growing number of imported electric cars, many of them from China, are stuck at the ports of Europe as manufacturers and distributors struggle with a slowdown in sales. The ports of Antwerp and Zeebrugge in Belgium are reportedly flooded with EVs from China, although the port authorities clarified that it's not only Chinese vehicles involved. Let's delve into the details:


- The Situation: European ports, particularly Antwerp and Zeebrugge, are grappling with an influx of electric vehicles (EVs) from China. These cars are piling up, turning the ports into impromptu car parks.


- Chinese Models: The congestion primarily stems from Chinese EVs, including brands like MG, BYD, Nio, XPeng, Lynk & Co, Omoda, and Hongqi. These manufacturers are targeting the European market, capitalizing on state aid initiatives in several countries that encourage buyers to opt for electric vehicles.


- European Market Trends: While European efforts focus on supporting their own car manufacturing industry, the flood of vehicle exports from China continues. In the first quarter of this year, over 1.3 million vehicles arrived in Europe from China, marking a 33% increase compared to the previous year. Notably, a significant majority of these vehicles are EVs.


- Belgium: The Epicenter: Belgium, particularly the port of Antwerp, has become the top European destination for Chinese carmakers. In February, EVs piled up spectacularly, leading to the ports resembling car parks. The Port of Antwerp-Bruges, Europe's second-largest port, received nearly 1.7 million cars last year, slightly below the 2019 figure of 1.95 million. However, forecasts suggest that between 600,000 and 1 million vehicles from China could land in Antwerp-Bruges in 2024.


- Challenges: Several factors contribute to the bottleneck at European ports:

    - Low Car Sales: Europe's relatively low electric car sales play a role.

    - Road Haulage Capacity: Insufficient road haulage capacity for cars and a shortage of delivery drivers exacerbate the problem.

    - Short Sea Shipping: Limited capacity for short sea shipping of cars within Europe adds to the congestion.

    - Long Stays: Some cars have been parked at the port for more than a year, according to anonymous sources.


- Sales Network and Onward Transportation: The Financial Times highlights that Chinese models lack an established sales network in Europe, leading to slower sales than anticipated. Additionally, onward transportation within Europe poses challenges.


In summary, the surge in Chinese EVs has turned European ports into temporary car parks, highlighting the complexities of global automotive logistics and the need for efficient distribution channels. As the industry adapts, finding solutions to these bottlenecks will be crucial for smoother operations and timely deliveries.


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