Chinese electric vehicle (EV) aim to export tens of thousands of such vehicles globally.
To achieve this, however, a significantly increased availability of car carriers is required. The demand for these vehicles is so high that China will own the fourth largest fleet of ships in the world within a few years, thanks to the creation of new trade routes specifically to serve the EV (electric) vehicle market
China now ranks eighth in the world in terms of fleet size, with 33 car carriers, according to data provided by shipping consultants Veson Nautical and reported by Reuters. Japan tops the list with 284 ships, followed by Norway with 102 ships. South Korea is third with 72 ships, while the Isle of Man, with 61 ships, is in fourth place.
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The current shipping situation is evolving rapidly, with Chinese companies ordering 47 new ships, accounting for a quarter of the total number of orders worldwide. Buyers include leading companies such as SAIC Motor, Chery, BYD, as well as shipping companies COSCO and China Merchants, acting on behalf of Chinese auto giants, according to Reuters.
“With the delivery of this armada to China, the percentage control of the Chinese fleet in car transport is set to increase dramatically, from 2.4% to 8.7%,” Veson analyst Andrea de Luca said in a statement to Reuters. “We are likely to see the creation of new trade routes that will serve almost exclusively the Chinese needs in the car market.”
China has overtaken Japan to become the world’s largest car exporter, with BYD exporting more than 240,000 vehicles last year, accounting for nearly 80% of its total global sales. This year, the company aims to export up to 400,000 electric vehicles (EVs). With a specially designed ship capable of carrying up to 7,000 EVs and plans to add seven more ships over the next two years, the electric mobility giant is expanding its global footprint.
Tesla and Volkswagen have managed to expand their exports from China, thus taking advantage of the country's more economical supply chain to their own benefit.
Typically, cars are transported by sea using special roll-on/roll-off (RORO) ships, which facilitate the direct entry and exit of vehicles without the need for cranes. However, according to MIT Technology Review, these ships have been in short supply in recent years as older models have been retired and new orders have declined significantly, both due to the 2008 financial crisis and the industry to less polluting fuels.
In Japan, auto giants Nissan and Toyotahave extensive fleets of RORO ships capable of transporting tens of thousands of vehicles. In contrast, in China, domestic car carriers have accounted for a small share of global shipping capacity, accounting for just 2.8%. This leaves Chinese companies with limited options for exporting their cars.
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As a result, access to RORO ships has become a fortune, with daily rates for ships reaching $115,000 per day. This is more than seven times higher than the 2019 price. So, companies have turned to buying privately owned ships.
Source: electrek
