The pure car and truck carrier (PCTC) fleet is set to grow by around 40 percent in the coming few years, according to AXSRoRo.
“Claiming that the PCTC market remains buoyant is an understatement when the newbuilding orderbook has reached an all-time high,” AXSRoRo said.
New players entering the market include Seaspan Corporation, H-Line Shipping as well as Greece’s Atlas Maritime whose first PCTC, the 7,000 ceu capacity Electric Star, is expected to be delivered in October.
Global liners such as HMM and CMA CGM have also entered the sector, and MSC has also launched a USD700 million bid for Oslo-listed Gram Car Carriers (GCC). Chinese automotive brands are also securing tonnage to move their own manufactured goods.
One of the main reasons for the surging rates has been changing trade patterns with cars being shipped far greater distances. This has largely been driven by surging long-haul Chinese exports, particularly to Europe, and increasingly of larger, heavier electric vehicles. This situation has become contentious between the two trading blocs.
The recent surge in car shipments has left limited space for heavy and project cargoes to access ro-ro vessels. However, with tariffs being introduced by the EU on Chinese automotive unit imports, this could also prove to be a catalyst for more Chinese car manufacturers to set up facilities in Europe.
