The average annual rate to charter a large car carrier reached $70,000 a day in June, according to shipbroker Clarksons, up from $42,500 at the end of last year, as vehicle exports out of China outpace the capacity of the ships built to move them.
Rates to charter the vessels, which are designed so cars can be driven on and off, are up 65 per cent this year. Specialised carriers are booked out years ahead to move vehicles from Chinese factories.
Research group Mobility Global says China exported just under 600,000 cars and vans in 2019. This year the group forecasts China could ship up to 10 million vehicles.
“You’ve got China moving from being insignificant to being the world’s largest vehicle exporter in only a five-year period,” said Andreas Enger, chief executive of Norwegian car carrier Höegh Autoliners. Enger said ocean freight rates for cars are now double their prepandemic levels.
Carriers have bought vessels in recent years to meet the demand. Lasse Kristoffersen, chief executive of Wallenius Wilhelmsen, which operates the world’s largest car-carrier fleet, said the global fleet has grown by about 40 per cent but still cannot meet China’s needs.
Support authors and subscribe to content
This is premium stuff. Subscribe to read the entire article.
