Smooth Sailing

(Article originally published in May/June 2026 edition.)

If you are a port or a shipping line in the roll-on/roll-off (ro-ro) business these days, moving automobiles and high-and-heavy pieces can be both a challenging and rewarding place to be.
According to Business Research Insights, an international market research firm, ro-ro cargo is expected to generate an estimated $14.3 billion in 2026 and reach an estimated $36.7 billion by 2035. That kind of growth is impressive.

At the Port of Galveston, Port Director & CEO Rodger Rees says ro-ro cargo is going strong with volumes up 87 percent in the first quarter of 2026 compared to the same period last year. Through March, the port handled 141,000 tons including agricultural, construction and military equipment. New car imports were down, however, compared to the first quarter of 2025, due to the impact of tariffs.

Rees notes that, "Ro-ro is a labor-intensive cargo that generates good-paying jobs for skilled union workers who handle the specialized cargo."

This summer Galveston will complete a $106-million cargo infrastructure project to handle more ro-ro ships and cargoes. Improvements include a 1,434-foot-long berth, enclosing two outdated slips, filling one slip and demolishing a decommissioned grain elevator. The project will add more than 30 acres of cargo space.

The port's 20-year strategic Master Plan also forecasts cargo and industrial growth for large areas of port-owned land on Pelican Island, located in deepwater Galveston Harbor.

RO-RO RODEO

At the Port of Baltimore, it's "giddy-up" machine operator as the port hosted its annual Ro-Ro Rodeo.

"This is a unique event that no other port has," says Richard Scher, Director of Communications. "It's a two-day training program on high-and-heavy equipment for newly hired longshore workers. We had approximately 200 men and women participate and learn how to safely move and operate combines, harvesters and many other types of farm and construction machinery."

Baltimore is the nation's leading port for ro-ro cargo, and 2025 was no exception.

"We had a very good year in 2025 for roll-on/roll-off, both high-and-heavy and autos," adds Scher. "The port's public terminals, managed by the Maryland Port Administration, handled 887,513 tons of roll-on/roll-off farm and construction equipment in 2025, a six percent increase over 2024 and the highest again among all U.S. ports. In terms of autos, Baltimore handled 728,225 autos and light trucks in 2025, second overall in the U.S. and our 13th consecutive year exceeding 700,000."

Scher acknowledged that the past two years have been challenging with tariffs and recovering from the Key Bridge incident two years ago: "The tariffs' inconsistencies have been hard on our industry. OEMs (original equipment manufacturers) were wondering should they pay tariffs or opt to produce more vehicles in the U.S. That contributed to a decline in our overall auto volumes."

INDUSTRY FIRST

The Port of San Diego saw a large influx of auto imports ahead of certain tariffs, which resulted in some longer dwell times on terminal, but cargo volumes have remained fairly stable, says Michael LaFleur, the port's Chief Operations Officer.

"Roll-on/roll-off cargo operations continue to play a very important role in strengthening our local, regional and statewide economy," he explains. "With the help of the PASHA Group, the Port of San Diego has established itself as a premier vehicle importation and processing destination. On top of that, we installed shore power at our National City Marine Terminal, resulting in the first successful connection for a ro-ro vessel in the U.S."

San Diego is beginning to implement its National City Balanced Plan, which includes a rail realignment and additional track at the National City Marine Terminal to support the port's ro-ro business.

AUTOMOTIVE GATEWAY

Port Tampa Bay is in expansion mode, growing its ro-ro sector through strategic investments and infrastructure enhancements and strengthening its role as a key automotive gateway for Florida and the Southeast.

The port's ro-ro sector has gained significant momentum with a 69 percent year-over-year increase from October through April in fiscal years 2025 and 2026. More than 160,000 vehicles have moved through the port since 2022.

"Our growth in the ro-ro sector reflects the continued strength of both the West Central Florida region and the state's economy," notes Paul Anderson, Port Tampa Bay President & CEO. "As Florida's population and visitor base continue to grow, Port Tampa Bay's strategic location and infrastructure position us to efficiently serve manufacturers, support supply chain growth and help meet rising demand."

A major milestone came in 2023 when the port approved a long-term lease agreement to expand its vehicle-processing operations. The initiative increased dedicated ro-ro acreage from 20 to 30 acres, including the addition of a new vehicle-processing center and 10 acres of storage capacity.

The port's prime location, close to Mexico and centrally positioned within Florida, provides auto manufacturers with direct access to approximately 10 million consumers along the Interstate 4 corridor, and Florida's status as one of the nation's leading rental car markets further supports demand. Port Tampa Bay also continues to strengthen partnerships with global automotive logistics providers, including GLOVIS America, which operates regular short-sea ro-ro service between Mexico and Tampa.

CHANGING CARGO FLOWS

As ports deal with moving ro-ro cargo to and from ships, trains and trucks, Atlantic Container Line (ACL), headquartered in Westfield, New Jersey and a significant ro-ro carrier, contends with ever-changing cargo flows and markets.

CEO Andrew Abbott offers some up-to-date information on his operation.

"We don't have the total trade statistics for Canada," he says, "but PIERS data shows that ro-ro carriers on the U.S. East Coast carried 47 percent fewer imported cars from North Europe in the first quarter of 2026 compared to 2025. High-and-heavy cargo was up one percent. For North Europe to USNH (United States North of Hatteras) ports where ACL operates (ACL does not call at U.S. South Atlantic ports), the car import volume for the trade was down 48 percent but high-and-heavy cargo was up 19 percent."

Abbott says his company is a minor player in the car market, focused mainly on U.K. cars: "Our USNH market share of imported cars grew from two percent in the first quarter of 2025 to four percent in the first quarter of 2026. Our market share of high-and-heavy imports grew from 65 percent to 71 percent. We've been full on with high-and-heavy since February, up 30 percent over last year, despite tariffs, the weak U.S. dollar and the weakening U.S. economy."

He adds that ACL's sailing frequency has simply been better than anyone else on the North Atlantic this year, "So we're getting more cargo from customers valuing our reliable weekly sailings. We're booked out into mid-June already."

While the transatlantic car trade was down significantly, Chinese car exports surged 57 percent in the first quarter, prompting ro-ro carriers to allocate more ships to that trade, where ACL doesn't operate.

ACL actually expected a terrible year but is doing significantly better than expected.

"I think the main reason is the U.S. doesn't make what we're shipping in from Europe," Abbott says. "U.S. companies have no alternative but to pay the tariffs and pass on the costs. I don't understand how we can maintain these volumes given the economic conditions, but we're enjoying it while we've got it."

HURTFUL POLICIES

In the meantime, Abbott says tariffs and the antagonistic U.S. foreign policy have certainly not helped business but appear to be hurting American exporters worse than importers so far.

"So many U.S. products have imported components and the additional costs are making the end product more expensive," he explains. "Meanwhile, China has swooped into many countries with an olive branch and cheap prices, a tough combination to beat."

Tom Peters is the magazine's ports columnist

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.