Shipping vessel storages impact Chinese EV exports

Chinese EV sales in Europe limited by ship shortages: A shortage of car-moving vessels has bumped up shipping prices to record highs restricting the flow of Chinese EVs to Europe, the Financial Times reports. Pandemic-related slowdowns saw shipping companies scrap older vessels in 2020, but a faster-than-expected rebound in the global auto market and a surge in Chinese exports saw a disparity between demand and vessel capacity. Despite record order books for new vessels, replacement carriers are not expected to be ready for another three years.

By the numbers: The number of cars shipped by sea is expected to have grown 17% y-o-y in 2023 to 23.4 mn, a record high, with European car imports rising some 40% during the period, FT said citing Clarksons shipping data. Shortages in shipping capacity have seen daily charter rates hit USD 115k, 10% higher than 2022 and seven times the rates seen in 2019, leaving the shipping industry “playing catch-up,” research director at Clarksons Stephen Gordon told FT.