Performance of Car Carriers
The global shipping industry has been experiencing a significant surge in car trade volumes by sea, with projections indicating a 12% increase above pre-COVID levels this year. According to Clarksons Research, car carriers have been one of the best performing shipping sectors in 2021, with a 19% increase in car-miles.
The latest data shows that global deepsea seaborne car trades are set to grow by 17%, reaching an all-time high of 23.7 million cars. This surpasses the pre-COVID record of 21.5 million cars set in 2018, primarily driven by the surging Chinese exports.
Factors Contributing to Growth of Car Carriers
One of the factors contributing to the growth of car carriers is the increasing share of trade accounted for by electric vehicles and hybrids. These larger and heavier vehicles now account for 29% of cars moved by sea this year, up from 9% in 2019.
Shortage of Car Carriers
Moreover, after a decade of limited orders, there has been a shortage of car carriers, leading to a significant increase in their value over the past year. Rates have hit record levels amid a post-pandemic rebound in car demand. Consequently, the car carrier order book has increased, with owners securing slots mostly in China for super sized vessels.
Impact on Container Carrier Sector
The container carrier sector has also seen an impact from the shortage of car carriers. Carmakers have tapped into this sector, taking advantage of weakened rates. The latest data shows that 80 vessels of 677,000 ceu have been confirmed ordered in 2023, taking the order book to some 37% of fleet capacity.
Outlook for Car Carrier Markets
Clarksons Research has described the car carrier markets as remaining "exceptionally tight" as 2023 draws to a close. A one-year time charter rate for a 6,500 ceu ship stood at $115,000 per day by November, up a further 10% from already record year-ago levels and more than double the previous Q2 2008 high.
Summary
The car carrier sector is experiencing significant growth due to increased demand for electric vehicles and hybrids and a shortage of carriers. This trend is set to continue as projections indicate a further increase in car trade volumes by sea in the coming years.
(This article is sourced from Splash247.com and curated by Thetransporteronline24)
