Order book for car transporters increases by 30% in the first three months of 2023 Ship’s crew

According to data from Gersemi Asset Management, the car carrier order book is up 30% year-to-date and now accounts for 25% of the fleet on the water. Another notable trend in this booming sector is the re-entry of global container ships.

After a decade of limited orders, auto carriers have become a desirable shipping item over the past year, with rates hitting record levels and ton-miles increasing significantly, partly due to growth in China’s electric vehicle (EV) exports.

Source: Gersemi Asset Management

With interest rates still very high, experts believe there is little chance for the sector to cool down this year. Only 12 vehicle transporters are expected to be delivered in 2023, compared to extremely low demolition activity projected at three vessel distances, marginally improving the net fleet balance by 1.8% by total ceu, according to data from VesselsValue.

“This niche sector will remain significantly short of ship deliveries until 2023. This is ominous for OEMs desperate for additional vehicle capacity for their EV exports by sea – but very positive for shipowners and their shareholders who are enjoying another 12+ months of record returns,” said Dan Nash. Head of Ferry, Vehicle Transport and RoRo at VesselsValue syringes.

However, 46 ship deliveries are projected for 2024, followed by 52 ship deliveries in 2025, compared to projected ship distances less than half the delivery rate based on the latest data for both years. This will add 0.6 million CEU capacity to the global fleet by the end of 2025, which Nash says could grow even more if Chinese OEMs exercise current options.

Chinese car manufacturers have entered the car transporter scene in recent months and are responsible for most of the new orders.

Global container transporters have also tried to get in on the action, with VesselsValue noting that COSCO, CMA CGM and HMM have ordered and chartered vehicle transporters over the past year.

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