Global Car Carrier Fleet to Grow by 40%

The global pure car, truck carrier (PCTC) fleet is expected to grow by approximately 40% over the coming years according to a new analysis conducted by AXSRoRo. Further data from Clarksons Research presents an equally compelling picture, suggesting that the PCTC fleet orderbook stands at 35% today. 

Clarksons Research has found that nearly 40 car carriers have been contracted year-to-date, including some of the largest PCTC vessels ever ordered. Further, 2023 saw 88 vessels ‘firmed up’ mostly across Chinese shipyards. 

The research firm’s data has also highlighted that car carriers represent one of the most profitable sectors in shipping in the 2020s. One-year time charters for 6,500 CEU ships are in the $105,000 range (up from the previous high of just over $50,000 per day in 2008).

The surge in car carrier orders and demand is derived from a global shift in car export activity. In short, more cars are being transported over longer distances. As we’ve written previously, the Chinese automotive industry in particular is now looking for foreign export markets (notably Eastern and Western Europe and South America) - but requires an expansion of the existing car carrier fleet to achieve this. 

Such is demand that Chinese automotive manufacturers are increasingly chartering new PCTC vessels - see BYD’s recent deal regarding the Explorer 1.

The surge in demand for car carriers has also enticed a number of new lines into the segment, including Seaspan Corporation, H-Line Shipping, and Atlas Maritime. Global giant MSC, meanwhile, has submitted a $700m bid for Gram Car Carriers (GCC) - which is expected to be agreed imminently. 

Whether this demand for PCTC capacity is likely to continue will be largely dependent on political factors - with politicians in the West (notably the U.S. and the European Union) mulling protectionist tariffs against Chinese EVs. 

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