April 11th, 2023
According to data from Clarksons the Pure Car and Truck Carrier (PCTC) niche is outperforming the rest of the shipping market, with 38 newbuild PCTCs ordered in 2021 and 90 in 2022. The reason for this massive increase is caused by several factors: Limited capacity, increased production, and transport of new vehicles since late 2020 and the need for more green and sustainable supply chain solutions.
European Maritime Finance partnering with Atlas Maritime have ordered three new PCTCs each capable of carrying 7.000 units to be delivered between Q3 2024 and Q1 2026. The vessels are LNG Dual Fueled which meets both car manufacturers and consumer demand for a greener supply chain. These ship types not only fetch a high price on resale. Over the past year, freight rates have risen to over US$100,000 per day.
In recent years, the demand for a more sustainable and environmentally friendly supply chain has been growing rapidly. This trend has been driven by increasing awareness of climate change and the need to reduce carbon emissions. One industry that has been particularly affected by this trend is the PCTC newbuild market in China.
The demand for these greener PCTCs has been growing rapidly in China. This is driven by a number of factors, including stricter environmental regulations, rising fuel costs, and increasing pressure from customers to adopt more sustainable practices. As a result, many shipyards in China have seen a surge in orders for greener vessels.
This trend is likely to continue to grow in the coming years. As more companies seek to adopt sustainable practices, they will increasingly look to their supply chains to reduce their carbon footprint. PCTCs are an important part of many supply chains, and greener vessels will be in high demand as a result.
Overall, the trend towards greener PCTCs in China is a positive development for the industry and the environment. These vessels will help to reduce emissions and improve efficiency, making them an attractive option for customers who are looking to adopt more sustainable practices. As a result, we can expect to see continued growth in the PCTC newbuild market in China in the coming years.
Another factor explaining the need for PCTC newbuilds is the rapid growth of Chinese car exports. According to the China Association of Automobile Manufacturers, car exports in 2021 surpassed 2 million, a 100 per cent increase from 2020, and reached 3.1 million in 2022, a further 54 per cent increase.