Using VesselsValue data, Dan Nash, Head of RoRo, explores the current landscape of the Car Carrier sector after long term recovery from Covid-19, looking at record high rates and a surge in demand. This article highlights China taking the lead in the Car Carrier market, and the increase in commodity costs in the aftermath of Russia’s invasion of Ukraine.
“Focussing on global fleet supply, 5 consecutive years of low orders from 2016, combined with over exuberant scrapping activity by shipowners during the same period, laid solid foundations for short supply conditions embedded today. Last year bucked the trend as 53 vessel orders were confirmed, up 124% versus the historical average. Over 90% were 7000 CEU LNG Dual Fuel confirming a new standard. A healthy number, but it was left too late. Shipyards have now closed shop, fully booked until 2025.
Recent developments should not be surprising because underlying demand for cars has been strong since Q3 2020, after the first major wave of Covid-19 passed through Europe. Global light vehicle production slipped to just c.76.5 million units in 2021 weighed down by a chronic microchip shortage, compared to c.81 million of sales units reducing inventory by c.4.5 million. Less autos were made versus sold, depleting inventory which compounded month on month as production failed to keep up with sales demand…”
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| Global Vehicle Carrier Supply & Demand 4000+ CEU. Read the full report here. |
