Global logistics leader DP World has unveiled a groundbreaking solution to transport finished vehicles using 53-foot intermodal containers with racking systems, enhancing efficiency and reducing costs for automotive manufacturers. Starting June 1, 2024, this service will transport cars by rail from Mexico to the United States and Canada.
The process involves loading finished vehicles into containers at factories in Mexico or nearby stuffing yards. These containers are then trucked to rail ramps and transported by rail to cities like Los Angeles, Chicago, Detroit, and Toronto. Upon arrival, the containers are trucked to yards where the cars are unloaded and delivered to dealerships. Transit times range from 8 to 14 days, depending on the route.
This innovative service is expected to transport an additional 30,000 vehicles between the trading partners in 2024. The 53-foot containers can carry up to six cars, compared to four in traditional 40-foot containers, making the operation more efficient.
DP World is currently the only logistics provider offering this intermodal container solution for finished vehicles. This initiative comes at a time when the automotive logistics industry in North America faces challenges due to ro-ro and multilevel railcar capacity shortages.
In 2023, Mexico became the U.S.’s top trading partner, thanks to its booming manufacturing sector, particularly in automotive, bolstered by the 2020 United States-Mexico-Canada Agreement (USMCA). Since early 2024, DP World has already transported over 5,000 cars across the Mexico-U.S. border for American and Japanese OEMs.
Christoph Seitz, Global Vice President of Finished Vehicles at DP World, stated, “Our extensive experience in shipping cars in containers, coupled with our global racking fleet and expert teams, has enabled us to provide this unique solution. Our initial shipments this year have proven the viability of the 53-foot intermodal solution, so we are now offering it to the wider market.”
DP World’s innovation addresses the current capacity constraints and offers a reliable alternative for automotive logistics in North America.
