As VesselsValue reports, with an estimated USD 775 bn worth of exports in 2018, cars represent the world’s number three exported product by value, trailing only crude oil and refined petroleum oils. Based on this, the vehicle carrier market should be booming, but this is not the case.
Matthew Freeman, Commercial Director, VesselsValue, notes that the aggregate number of ships on the water has remained stable over the past nine years, mainly because of a sensible balance achieved between scrapping and new vessel ordering.
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Nevertheless, many owners and larger operators decided to order larger designs, which are able to carry more than 8,000 units per shipment. This has led to lower margins and a reduction in demand and thus the value of the older smaller ships.
In addition, distressed sales of mid sized 10 year old PCTCs are starting to take place with the recently concluded deal of the Silverstone Express (3,390 CEU, 2009, Mitsubishi) at USD 17.5 mil to Siem Car Carriers, being such an example.
In fact, VesselsValue estimates the ship to be worth USD 20.7 mil today, but if additional distressed transactions are concluded this figure will decrease, Mr. Freeman explains.
What is more, the Japanese are still the dominant force in Vehicle Carrier ownership having ordered 33 vessels over the past 10 years. This is no surprise, as they are the second highest exporter of cars with USD 99 bn transacted in 2018 alone.
However, the Norwegians have been competing for car carrying capacity against Japan and South Korea and have been the second biggest contractors of new vessels with 25 ships ordered since 2009.
Moreover, according to VV data, Japan has the most valuable global fleet of Vehicle Carriers, while again Norway is in second place with its fleet being worth USD 3 bn.
Globally VV mentions the top five fleets by value are:
Finally, with the addition of these new valuations, VV’s top shipowning countries by value have changed order. Namely, previously Greece was in first place, followed by China and then Japan.
