The car carrier sector has witnessed a remarkable year marked by record trade volumes, a surge in electric vehicle adoption, tight freight markets, robust charter rates, and notable progress in transitioning to alternative fuels. As we approach the conclusion of 2023, key developments in the industry point to significant shifts and challenges.
Unprecedented Trade Growth
Exceptional global ‘deep sea’ seaborne car trade is projected to surge by 17%, reaching 23.7 million cars in 2023. This growth is attributed to booming Chinese exports, recovering production in key regions, and a substantial increase in China-Europe volumes. The sector is experiencing a 19% growth in ‘car-mile’ trade, with overall volumes expected to surpass pre-Covid levels by 12%
Tight Markets and Record Newbuild Contracts
Car carrier markets remain exceptionally tight, leading to strong financial results for operators and record charter rates. The imbalance in supply and demand has fueled a surge in new-build ordering, with 80 vessels totalling 677,000 CEU ordered in 2023, a new annual record. The order book now accounts for approximately 37% of fleet capacity, with a notable focus on alternative fuel capability, primarily LNG and methanol, reflecting the industry’s commitment to environmental sustainability.
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Source: Clarksons Research
