BLG Logistics and Cosco Shipping Car Carriers to work together on China vehicle and equipment imports to Europe

Following an agreement signed with state-owned Chinese shipping giant Cosco, BLG Logistics’ automotive terminal at the German port of Bremerhaven is to become a central port of entry for finished vehicles and high and heavy goods being shipped from China to Europe. 

Cosco Shipping Car Carriers is aiming to make at least two calls per month at BLG AutoTerminal Bremerhaven (ATB) with vehicles and equipment destined for Germany and for onward transhipment to Scandinavia, central and eastern Europe and the Baltic states. BLG said the service would enable Chinese companies wanting to export products from their plants in China to European dealerships to obtain end-to-end logistics solutions from a single source.

Europe is a target market for Chinese vehicle makers, including for battery electric vehicles despite the tariffs now being applied by the European Union on those Chinese EV imports. Since the beginning November last year carmakers have been variously charged additional tariffs on EV imports above the 10% previously applied. That includes 17.4% on BYD, 20% on Geely and 38.1% on SAIC. Other carmakers in China which cooperated with the European Commission investigation are subject to a tariff of 21%, and those which didn’t cooperate with the investigation are subject to a 38.1% tariff. That has not deterred the bigger EV exporters and the volume of shipments has helped turn Europe from an export base to one importing more vehicles that it exports.

Axel Bantel, global director of sales at BLG Automobile Logistics, said it is important for Bremerhaven to adapt to current market developments. 

“This means that we have to take into account the changing requirements of our traditional customers and at the same time create efficient logistics solutions for new importers,” said Bantel. Being recognised by Cosco Shipping Car Carriers for its network advantages to Chinese manufacturers, including port and inland terminals, intermodal links and technical services, is welcomed by BLG Logistics, according to Bantel.

In February Bantel told Automotive Logistics about its efforts to upgrade infrastructure and processes at Bremerhaven over the last 18 months to support an increase in the import of Chinese vehicles, which currently stood at 5% of overall volumes handled there. That included the creation of new off-dock terminal space and implementation of new processes for planning and capacity management. BLG handles around 1.5m finished vehicles a year through its Bremerhaven terminal. The logistics provider will announce its annual results at the end of April this year.

“Going forward we expect to continue offering robust services for our existing customer base, but also to offer solutions to new customers such as Chinese OEMs and shipping companies that are launching their products and services on the European market,” said Bantel.

Cosco said that for Chinese manufacturers, Bremerhaven plays a crucial role as a port of entry into the European market, providing efficient logistics access to the German market, one of the most important sales markets for vehicle manufacturers.