We expect, that bidding prices for southern auction will decrease and as a result cars selling prices will decrease in that area. There are two main reasons for that: 1) Ro-Ro "Byakko" sunk; 2) ECL considers cancel call to Kanda/Hakata ports.
Kyushu area auctions, expected to be effected.
TAA MINAMI KYUSHU
RO-RO "BIYAKO" OWNED BY PRINCE KAYUN CO.,LTD SUNK
Roro Biyako was the main vessel, which transported purchased cars from Kyushu area to Kobe port. Since most shipping companies does not have call to Kyushu ports, this service was highly in demand.
Ro-Ro Biyakko loaded with cars collided with a chemical tanker Ulsan Pioneer and sunk in the Kurushima Strait in southern Japan.
Currently, there is no service of RO-RO transportation of cars from Kyushu area to the ports of the main land. In- land transportation of cars is more expensive and takes more time.
ECL (Eastern Car Liner) CONSIDERS CANCEL CALL TO KANDA/ HAKATA PORTS.
Shipping company ECL considers discontinuing forwarding service from Kyushu .There seems to be a space tight situation of RO-RO ships in the background and the reason is that the booking is already full with Kansai loading and there is no need to make call to Kyushu. The Kyushu port will be called only when new cars are being shipped and it seems that the dispatch to Kanda/ Hakata will be irregular in the future.
Many exporters use ECL's Kanda/Hakata loading and shipping service when buying a vehicle at an auction in Kyushu, but if this is an irregular ship allocation , exporters will consider the Kobe and Osaka ports for loading. Taking into the consideration the transportation cost of vehicle from Kyushu area to Kansai area, exporters will place lower bids for cars. All above likely to affect the auction market in Kyushu.
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