In recent months, the fortunes of auto shipping companies have surged, with China exporting around 809,000 passenger cars, which is a 73% year-on-year increase.

In May, China exported 73% more passenger cars than the year before – about 809,000 vehicles. The surge in electric vehicle shipments sent the rates for chartering ships used to carry cars soaring to new heights. This effectively emptied the spot market of available cargo capacity. The performance of new energy vehicles (fully electric and plug-in hybrid models combined) was the most striking element of the May data. These vehicles more than doubled year-on-year, reaching a record 435,000 units and accounting for more than half of all passenger car exports for the first time.

China, the world's largest car exporter, overtook Japan

In 2022, China exported 3.11 million cars. However, by 2023, this figure had risen to 4.91 million, overtaking Japan to make China the world's largest car exporter. The number increased further in 2024 to 5.86 million units (with some estimates suggesting 6.41 million), demonstrating remarkable growth.

Chinese export growth shows no signs of slowing

The impact on the utilisation of car carriers was significant, with Clarksons estimating average freight rates at $65,000 per day in May. SEB's maritime industry analysts described the data as confirming a structural shift rather than a cyclical fluctuation. 'May brought another positive data point for the ro-ro sector: Chinese export growth shows no signs of slowing,' the bank stated in a note to clients.

 The car carrier market

The situation in the car carrier market has now reached a point where Chinese manufacturers are having to transfer volumes to container ships to meet their export obligations. "The latest surge in Chinese export volumes has effectively emptied the market for short-term freight contracts, further pushing up one-year rates and forcing Chinese manufacturers to shift more volumes to container ships ever, as ro-ro capacity fails to keep pace with demand," SEB stated.

A surge in the fortunes of auto shipping companies

Recent months have seen a surge in the fortunes of auto shipping companies, as highlighted by Dan Nash, an auto shipping industry analyst at Veson Nautical. For example, in May the brand-new Lake Rotorua, which has a capacity of 7,000 CEU, was chartered to SAIC Anji Logistics for $90,000 per day over a period of six months. This rate is 70% higher than the annual benchmark for vessels with a capacity of 6,500 CEU.

 Rates for transporting light vehicles from China to Europe.

This month, rates for transporting light vehicles from China to Europe using spot freight rates remained at $150 per cubic metre, which is a 100% increase on the Q4 2025 average. VesselsValue has reported that Chinese investors have invested over $34 million in the Trans Leader, an 18-year-old, 3,930 CEU vessel. This is $20.5 million above the 10-year average for such vessels.

"China is experiencing a shortage of ro-ro capacity, and the delivery of new vessels appears to be inadequate to meet export demands for the rest of the year. This ongoing trend is driving up rates and values in the car carrier market," Nash informed Splash 247.

A lack of ro-ro capacity

Veson data shows that the number of cars currently being exported from China by container ship is around 1 million, due to a lack of ro-ro capacity. Nash expects that, when supply improves in 2027/28, most will return to using car carriers, thus providing a cushion for ro-ro owner-operators' earnings.

The Chinese government attaches great importance to the automotive industry and is actively promoting the export of vehicles produced domestically. Although there has been a partial shift from electric vehicles (EVs) to hybrid electric vehicles (HEVs), China continues to focus on exporting new energy vehicles (NEVs), which combine domestic technology with autonomous driving and connected technologies.

#Veson data #Chinese car exports # Chinese government #SAIC Anji Logistics #Clarksons # Container liners