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Get in touchHow automakers can protect delivery timelines in a disrupted market.
EV adoption, tighter regulations and supply chain volatility are reshaping finished vehicle logistics. Here's what supply chain managers need to know.
Key Takeaways
EVs require different handling, compound infrastructure and documentation than internal combustion engine (ICE) vehicles. Existing logistics networks need updating.
Port congestion at RoRo terminals is a controllable cost lever; compound capacity planning is the starting point.
Section 232 tariffs of 25% on passenger vehicle imports and USMCA rules-of-origin requirements have introduced new compliance obligations for OEMs trading in North America.
Visibility across the full vehicle chain—from plant to dealer—remains the most cited operational gap in automotive logistics.
Aligning logistics strategy to vehicle type, trade lane and dealer expectation is a near-term action item.
Finished vehicle logistics has always demanded precision. When a vehicle misses its dealer delivery window, it can delay inventory availability, affect customer satisfaction and increase operational costs.
What has changed is the volume of variables your supply chain now has to absorb simultaneously: a global shift toward electric vehicles (EVs), persistent port congestion on Roll-on/Roll-off (RoRo) routes, tightening trade compliance requirements and growing expectations for real-time visibility across inbound vehicle movements.
The pressure on vehicle logistics networks is structural. Many original equipment manufacturers (OEMs) built their distribution models around predictable vehicle demand, established trade lanes and stable tariff environments. Today, EV growth requires more flexible logistics strategies.
This article covers five challenges most likely to affect your automotive supply chain in the near term and how to address each one.
The EV transition is reshaping how vehicles move
Electric vehicles are not a drop-in replacement for the logistics model built around conventional vehicles. They are heavier, carry high-voltage battery systems that require specific handling protocols and charging infrastructure at compounds before vehicles can be presented to dealers.
EVs are significantly heavier than comparable conventional vehicles, primarily because of their battery packs. That additional weight affects RoRo vessel loading plans and road transporter axle loads. As a result, a car transporter configured for conventional vehicles may carry fewer EVs per trip. This changes the unit economics of your last-mile delivery network.
The infrastructure gap at compounds also matter. Many established vehicle processing centers were built for conventional vehicles and do not carry the electrical capacity to charge multiple EVs simultaneously. Retrofitting those facilities takes capital and time, and in the interim, your distribution network carries risk.
The scale of the shift is rapid. Global EV sales exceeded 17 million units in 2024, representing more than 20% of all new cars sold worldwide, and the IEA projects the share of electric cars in overall car sales to exceed 40% in 2030.
For OEMs managing mixed conventional and EV fleets across international markets, the logistics model has to work for both simultaneously. The vehicle processing compound that handles a combustion-engine SUV efficiently may be the weak link in your EV distribution chain
Global EV sales exceeded 17 million units in 2024—more than 20% of all new cars sold worldwide.
IEA Global EV Outlook 2025
Port congestion and compound capacity constraints
The major US vehicle import ports—Brunswick, Baltimore and Jacksonville—each have finite compound capacity, and demand for that space does not distribute evenly throughout the year. Model-year changeovers, new model launches and seasonal registration patterns all push volume into the same windows.
When compound space fills, dwell time rises. A vehicle sitting in a port compound beyond its planned window is a depreciating asset exposed to weather, potential damage and processing delays that push its arrival at the dealer further into the future.
In 2024, the Francis Scott Key Bridge collapsed, closing Baltimore's main ship channel for 11 weeks. This event also demonstrated how quickly RoRo volume redistribution can overwhelm alternative terminals. Brunswick handled 80,600 units in April 2024 alone, a 44% increase year-on-year, as diverted cargo arrived faster than available compound space could absorb it.
Port selection is a strategic decision. Rerouting vehicles through an alternative terminal to avoid a congested primary port can reduce total transit time, even when the alternative is geographically less direct. But that flexibility requires pre-existing carrier relationships and compound capacity agreements at multiple ports, not ad-hoc arrangements made under pressure.
Compound capacity planning is the lever your supply chain team controls directly. Working with compound operators on forward allocation reduces dwell time risk at peak periods and gives you lead time to reroute when a primary compound fills.
The cost of a delayed vehicle extends beyond the compound day rate. It affects dealer inventory planning, customer delivery commitments and, in high-demand model segments, the risk of a buyer choosing a competitor vehicle that is available sooner.
Trade compliance and cross-border complexity
Finished vehicles are among the most compliance-intensive goods to move across US borders. Every unit requires a Certificate of Origin, an odometer disclosure statement and compliance with the American Automobile Labeling Act (AALA), which mandates disclosure of US and Canadian parts content percentages on the vehicle label.
In April 2025, a 25% Section 232 tariff took effect on passenger vehicle imports, covering sedans, SUVs, crossovers, minivans and light trucks. Vehicles qualifying for preferential treatment under the United States-Mexico-Canada Agreement (USMCA) are exempt, provided they meet the agreement's rules-of-origin requirements: 75% North American Regional Value Content (RVC) for the vehicle overall, with ten core components—including the battery for EVs—each carrying their own 75% RVC threshold.
For EVs specifically, meeting the USMCA battery RVC requirement is the single most consequential compliance challenge. Battery components are frequently sourced from Asia, making 75% North American content difficult to achieve. OEMs that cannot demonstrate compliance face the 25% Section 232 rate on every unit imported outside USMCA treatment.
Customs documentation errors are not minor administrative issues in finished vehicle logistics; they are operational emergencies. An error in tariff classification, a missing battery declaration or an inaccurate AALA content calculation can result in a vehicle being held at the port of entry for examination.
A held vehicle at the border is unpredictable, difficult to communicate around and typically triggers rebooking, storage and customer-communication costs that compound quickly. Managing this well requires a compliance function that stays current with regulatory changes, works in close coordination with your customs broker and holds clear escalation protocols for when a vehicle is detained.
The customs compliance layer in vehicle logistics is not a back-office task. It is a frontline risk in your vehicle chain. With the pace of tariff policy changes in recent years, customs management requires a more proactive approach to support compliance and keep goods moving efficiently.
Visibility gaps across the vehicle logistics chain
Five questions that surface gaps in your vehicle logistics visibility:
At which point in the chain do you lose real-time location data on your vehicles?
How quickly can you identify a vehicle that has missed a compound or vessel cut-off?
How do your dealers receive estimated delivery dates, and how often are those estimates revised?
What is your escalation path when a vehicle is flagged as delayed or missing in transit?
Can you reconcile plant dispatch records against dealer delivery confirmations at the unit level?
Most automotive supply chain teams can answer the first and last questions easily. The middle three—speed of exception detection, dealer communication quality and escalation discipline—are where the operational gaps sit.
Tracking a finished vehicle from plant to dealer involves multiple handoff points: plant dispatch, compound receipt, vessel loading, port-of-entry processing, inland transport, and dealer delivery. Each handoff is an opportunity for a visibility gap. Each gap is an opportunity for a delay to go undetected until it reaches the dealer.
Closing visibility gaps is a data and process problem. Tracking systems and exception alerts only deliver value when the underlying data from compound operators, vessel operators and inland carriers is accurate and timely. The system is as reliable as its weakest data contributor.
The consequence goes beyond internal inefficiency. Dealers plan their lot inventory, staffing and customer delivery commitments around estimated arrival dates. When those estimates are unreliable, dealer trust in the supply chain erodes. And in competitive vehicle segments, an unreliable ETA means the dealer risks losing the sale.
Five practices that strengthen finished vehicle logistics
Audit your compound network for EV charging capacity and handling certification before your EV volume arrives. A compound without adequate charging infrastructure creates state-of-charge compliance issues at dealer delivery. Build EV readiness into your partner selection criteria now, not after volume grows.
Allocate compound space in line with vessel arrival schedules and model-year planning calendars. Forward allocation reduces dwell time at peak periods and gives you leverage to reroute vehicles to alternative compounds when primary facilities fill. Treat compound space as a capacity constraint, not an assumption.
Assign ownership of tariff classification, USMCA origin determination and AALA content calculation to a named team or partner with regulatory-update protocols. A compliance error on a finished vehicle costs more than the correction. It costs the delay at the border and the dealer impact that follows.
Require all parties in your vehicle logistics chain—compound operators, vessel operators, inland carriers—to provide structured data at each handoff point. Exception alerts work only when the underlying data is reliable. Define your data standards contractually.
Establish one communication channel for dealer ETA updates and hold it to a revision standard. Dealers who receive consistent, accurate estimates plan better and communicate better to end customers. Inconsistent ETAs damage dealer confidence in the supply chain more than delays themselves.
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How Kuehne+Nagel manages finished vehicle logistics end to end
Kuehne+Nagel manages every stage from plant dispatch and compound operations to ocean transport, customs clearance, and dealer delivery.
Kuehne+Nagel also supports EV logistics requirements, including specialized handling, charging infrastructure coordination, and customs compliance.
Learn more about automotive logistics solutions and supply chain management for OEMs to optimize vehicle logistics performance and network efficiency.
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FAQs
Finished vehicle logistics (FVL) covers the movement of completed vehicles from the manufacturing plant to the end customer or dealer—via compound facilities, ocean freight on RoRo vessels and inland transport. It differs from parts logistics in that vehicles are high-value, large-format goods that cannot be repacked or consolidated. Every unit is tracked individually, and every delay has a direct revenue impact at the dealer.
EVs require compound facilities with charging infrastructure to maintain a minimum state of charge before dealer delivery. They are also significantly heavier than comparable conventional vehicles due to their battery packs, which affects RoRo loading plans and road transporter axle loads. At customs, EV battery chemistry declarations and USMCA battery content certifications add documentation requirements that do not apply to conventional vehicles. OEMs moving both vehicle types need a logistics partner capable of managing both sets of requirements simultaneously.
A 25% Section 232 tariff on passenger vehicle imports took effect on April 3, 2025, covering sedans, SUVs, crossovers, minivans, cargo vans and light trucks. Vehicles qualifying for preferential treatment under USMCA are exempt—provided they meet the 75% North American Regional Value Content threshold and additional requirements for core components including the EV battery. For vehicles sourced outside North America or failing USMCA RVC requirements, the 25% rate applies to the full import value. Confirm current applicable rates and exemptions at cbp.gov.
Visibility gaps typically occur at handoff points between parties—when a vehicle leaves the compound for vessel loading, when it arrives at the port of entry, or when it transfers from port to inland carrier. Each party in the chain may use different systems, and data often arrives after the physical movement has occurred. Improvement requires setting contractual data standards for each handoff and using a platform that aggregates that data into a single view for your team and your dealers.
Look for a partner with RoRo ocean freight capability on your key trade lanes, compound management relationships at your import ports and dedicated automotive customs expertise. EV handling capability—charging-ready compounds, battery documentation management—is now a baseline requirement. Beyond operational capability, the right partner provides a single point of contact for the full vehicle chain, so that when a vehicle is held at port or delayed at compound, escalation is fast and resolution is coordinated across all parties.