According to Reuters, Chinese automakers and shipping companies are placing unprecedented orders for car-carrying vessels to accommodate a surge in electric vehicle (EV) exports, data highlights.
This trend is expected to propel China to have the world’s fourth-largest fleet by 2028.
According to data from shipping consultancy Veson Nautical, China currently possesses the eighth-largest fleet globally with 33 car-carrying vessels. Japan leads with the largest fleet of 283 ships, followed by Norway with 102, South Korea with 72, and the Isle of Man with 61.
However, Chinese companies have placed orders for 47 additional ships, representing a quarter of all global orders. These orders are placed by buyers including SAIC Motor, Chery Automobile, and electric vehicle (EV) BYD, along with shippers like COSCO and China Merchants acting on behalf of Chinese automakers.
Amid intense price competition, budget-conscious consumers, and a slow economy, automakers are aggressively expanding into markets where they can sell vehicles at higher prices compared to their domestic market. In the past year, China surpassed Japan to become the largest auto exporter.
Reuters said that increased shipping costs and support from local governments have encouraged automakers to purchase their own ships. By the end of 2023, the daily charter rate for a 6,500-vehicle carrier reached $115,000, which is more than seven times the average rate seen in 2019, according to data from shipping consultancy Clarkson.