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A BYD car-carrier has made its first voyage from China to Australia, as the electric ...
By Alison Koo
Orders for new pure car and truck carriers (PCTCs) have plunged this year, with just six – with a combined capacity of 22,000 car-equivalent units (ceu) – commissioned, according to Clarksons.
In comparison, between 2022 and 2024, surging demand and charter rates saw annual average orders of 612,000 ceu.
The drop reflects the ‘normalisation’ of charter rates after a peak of more than $100,000 a day last year.
By the end of last month, the rate for a 5,000 ceu PCTC was $30,000 a day, down 68% from 2024, although this is more than twice the average seen between 2010 and 2019. Today, charter rates for a 6,500 ceu PCTC average $42,500 a day, down 64% year on year.
Covid suppressed demand for vehicles when many countries set movement restrictions, requiring white-collar staff to work from home, which saw many older PCTCs scrapped and deterred shipping companies from building new ships.
When the pandemic and movement restrictions eased, demand for vehicles was resurgent, but there were not enough PCTCs and charter rates rocketed, prompting shipowners to order newbuilds. Chinese carmakers, such as BYD and SAIC, even became shipowners and ordered PCTCs to transport the vehicles they produced.
Furthermore, typical car-carrier fixture periods have also shortened. Charters of around five years – typical in the past two years – are now rare unless offered at significant discounts.
Clarksons said shifting dynamics in the shipbuilding market had also impacted PCTC orders, as prices had not moderated in line with softer charter rates. A 7,000 ceu LNG-ready PCTC costs around $90m, down just 7% from the peak of 2024.
Extended delivery dates, resulting from high numbers of orders for other merchant ships, now mean shipowners must wait till 2028 or 2029 for new vessels, further deterring orders.
However, Clarksons said some PCTCs were aging and there was a need for fleet renewal. The brokerage added: “Particularly in the smaller sectors, where around 70% of ships with less than 6,000 CEU of capacity are 15+ years old, and very little ordering has been seen in recent years, creating potential for orders in the coming years.”
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