The country of Georgia has long been a major re-export hub for cars. Dealers purchased cars from the United States and Europe, shipped them to Georgia, and transported them to neighboring nations. But during the past 5 years, international car shipping to Georgia has been volatile. Surrounding countries have raised their import taxes or placed restrictions on used car imports. Georgian car dealers are forced to constantly adapt to the changing auto market.
Re-Export to Kazakhstan
Kazakhstan was one of the first countries to stop importing cars from Georgia. In 2011, Kazakhstan doubled their car import taxes when they joined the trade union with Russia and Belarus. Causing a collapse in car imports from the US to Georgia. In 2011, the number of cars imported in containers from the US fell by 85%. In 2012, the auto market continued to decline.
Opportunities in Armenia and Azerbaijan
From 2013 to 2014, Georgia found itself new customers. Armenia and Azerbaijan began to import cars in large numbers. In 2013, US exporters shipped more than 14,000 cars in containers to Georgia. And in 2014, that number nearly doubled to 25,000 cars.
Unfortunately, these auto markets are also on the verge of collapse. Last year, Azerbaijan entered the Euro-4 ecological standard, resulting in stricter laws on the import of used cars. During January and February 2015, just over 1,000 cars have been exported from Georgia to Azerbaijan. The volume decreased by over 75%.
Armenia's demand also came to a halt. In 2015, they followed Kazakhstan in joining the trade union with Russia. Their import rates increased from 10 to 25 percent. We foresee another decrease in international car shipping to Georgia this year, similar to the one experienced in 2012.
International Car Shipping Report
The United States is one of the largest car exporters in the world. Every year, over 500,000 cars are shipped in containers overseas to over 160 countries.
Each quarter, West Coast Shipping releases a US Car Export Report which provides a summary of the cars shipped overseas, the countries they are shipped to, and the largest areas of growth for international car traders.