According to foreign media reports, Chinese shipowners and carmakers are joining forces to expand their car-carrier fleets in response to growing vehicle export demand. Cosco Shipping Specialized Carriers, BYD, and SAIC Anji Logistics plan to jointly invest around $2.5 billion to build 21 11,000-ceu car carriers at domestic shipyards.
What Happened
Cosco Shipping is ordering up to 11 vessels, BYD plans to order eight, and SAIC Anji Logistics two, according to the report. Cosco is reportedly choosing Xiamen Shipbuilding and Guangzhou Shipyard International (GSI) as builders. SAIC Anji has issued a tender inviting international shipbuilders to submit quotes.
The tender, launched on September 23, requires shipbuilders to have completed at least ten LNG dual-fuelled car carriers of at least 7,000 ceu between January 1, 2023, and August 31, 2026. Based on Clarksons data, only China Merchants Heavy Industry (Jiangsu), GSI, China Merchants Jinling, and Yantai CIMC Raffles meet the criteria.
Separately, Ningbo Ocean Shipping (NBOSCO) said in an October 8 filing with the Shanghai Stock Exchange that it plans to charter two 7,000-ceu LNG dual-fuelled car carriers for up to $480 million over 20 years. Details on builders and delivery dates were not disclosed.
Background
China's monthly car exports now exceed one million units. Norwegian brokerage Fearnley Securities estimates an annualized car-carrying capacity shortfall of around 3 million ceu. Car carriers exceeding 10,000 ceu remain a minority, and the Chinese push signals an intent to reduce per-vehicle transport costs. If newbuilding orders are signed by year-end, more than 100 car carriers will have been ordered this year, a record. The current orderbook stands at 26.7% of the active fleet.
Meanwhile, following trade discussions, the EU capped annual Chinese hybrid electric vehicle (HEV) imports at 350,000 units, with an annual quota growth rate of 6%. The bloc imported around 302,000 HEVs from China last year, while the 2026 trajectory would have indicated around 800,000 prior to the deal. Fearnley Securities said that while the EU quota would dampen tonne-km demand for car carriers, overall demand remains positive, as China could push more vehicles to other jurisdictions, potentially offsetting fewer European imports.
Impact on Shippers
For Chinese cross-border e-commerce sellers and exporters shipping to the US, the car-carrier fleet expansion mainly affects whole-vehicle and large-equipment exports. However, tight ro-ro capacity can indirectly impact space and rates for oversized cargo on ocean routes. If car exports remain strong, shipyard slots may be heavily occupied, potentially delaying deliveries of other vessel types and affecting overall ocean capacity supply.
On customs clearance, the EU's HEV quota may prompt some automakers to shift export focus to the US and other markets, intensifying clearance and compliance scrutiny for vehicles and parts bound for the US. Shippers should monitor changes in US customs requirements for relevant products.
Recommendations
Shippers of vehicles and oversized cargo should confirm ro-ro and special equipment space with carriers or forwarders well in advance to avoid rollovers or delays caused by tight capacity. At the same time, closely monitor import policy adjustments for vehicles and parts in destination countries, prepare compliant documents early, and allow longer clearance times. For non-automotive cargo, consider diversified transport solutions to reduce reliance on a single vessel type.