Car-carrier owners pivot to China amid
Western car-carrier owners are prioritizing vessels for Chinese vehicle exports and ordering new ships, as a capacity shortage drives up charter rates and
Western car-carrier owners are pivoting their fleets to serve China's booming vehicle export trade. A severe shortage of specialized ro-ro vessel capacity is pushing up charter rates and triggering a wave of new ship orders.
Wallenius Wilhelmsen CEO Lasse Kristoffersen highlighted the surge during the company's first-half 2026 earnings call. He noted that China's monthly vehicle exports surpassed one million in June, a rate that would annualize to over 12 million vehicles. Kristoffersen stated China's cars have evolved from being a cheap product to a preferred one, contrasting with falling market share for European and US automakers.
Capacity shortage and market tightness
The ro-ro sector faces a significant capacity deficit. Wallenius Wilhelmsen estimates a shortage of between 2 million and 4 million car equivalent units (ceu). Kristoffersen explained that despite a massive fleet growth from a large orderbook, all new capacity has been absorbed. He said there are hardly any vessels available for charter in the coming years. The company has actively renegotiated some contracts to reflect current market conditions and costs. Many Chinese customers are seeking longer charter contracts but face tight capacity.
Newbuilding orders surge
The capacity crunch has stimulated a new round of orders for pure car and truck carriers (PCTCs). Several major tonnage providers have recently commissioned new vessels from Chinese shipyards.
| Company | Shipyard | Vessels Ordered | Capacity (ceu) | Fuel Type | Price per Ship | Delivery Window |
|---|---|---|---|---|---|---|
| Ray Car Carriers | Guangzhou Shipyard International | 10 (with 4 options) | 8,200 | LNG dual-fuel | $100 million | 2029-2031 |
| Hoegh Autoliners | China Merchants Heavy Industry (Jiangsu) | 6 | 9,100 | Not specified | Not specified | 2029-2031 |
| SFL | Not specified | 4 | 7,000 | Not specified | Not specified | 2029 |
Ray Car Carriers, controlled by Abraham Ungar, placed its first order in China. Hoegh Autoliners returned to a Chinese yard after a four-year hiatus. SFL ordered four ships, two of which have already been chartered by an Asian car-maker for five years, adding $150 million to SFL's firm charter backlog.
Impact on rates and alternative transport
Charter rates are climbing as demand outpaces supply. Hoegh Autoliners CEO Andreas Enger said during its H1 earnings call that the company's PCTCs were 'sold out' for this year, with a strong backlog extending into 2027. He attributed the tight market directly to Chinese growth, which has fully absorbed newbuild orderbooks. Enger also estimated that due to insufficient PCTC capacity, as many as 1.5 million cars have been transported in containers so far this year. The pivot of car-carrier owners and their newbuilding programs shows the lasting shift in global automotive trade flows driven by China's export engine.
