Vehicle Carriers (PCTC, LCTC) Asset values finally peaked in the Vehicle Carrier (VC) sector following an exceptional two-year bull run, owing to a lack of liquidity and reallocated demand favouring Container Carriers ex China as the main source of trade growth. Global cargo miles firmed 2.5% based on 187.7 billon CEU-NM (Car Equivalent Unit per …

Vehicle Carriers (PCTC, LCTC) Short Shipping supply got further squeezed for exporters in 2022 due to chronic land side congestion at major ports and terminals in Europe, reducing PCTC (Pure Car Truck Carrier) ship call frequency and therefore capacity. Terminal space completely maxed out in August at major hubs in the Med and Northwest Europe, …

Freight Demand Main Catalyst for Fleet Growth Since 2012 Looking at fleet development from Midsizes upwards, steady year-on-year (YoY) net growth has been evident since 2016, up +1.47 mil GT (+13.2%) inclusive of 2022. The main catalyst behind this growth has been stronger demand for freight capacity, adding 116,285 Lane Meters (+16.2%). By contrast, passenger …

The Car Carrier market went into overdrive in mid August, after Nissan extended their 100,000 USD/Day rate on Lake Geneva (6,178 CEU, Jan 2015, Imabari) just four weeks into the deal. A record breaking fixture setting a higher high in a raging bull market, paralysed by short PCTC supply following years of underinvestment. To put …

Bidding wars for Car Carriers are driving rates up to record highs never before seen in the sector. Eastern Pacific’s Lake Wanaka (4,902 CEU, May 2008, Xiamen Shipbuilding Ind) was fixed for 1 year at 50,000 USD/Day to Volkswagen in March. A premium of 10,000 USD/Day compared to the larger, younger Lake Geneva (6,178 CEU, …

Asset Price Inflation Newbuild spend for Vehicle Carriers (LCTCs / PCTCs / PCCs) smashed past $3.2 billion last week, following big volume orders from Eastern Pacific and Zodiac. An astonishing amount of money for a niche sector, exceeding the previous 6 years total combined. If we include options, a whopping $4.4 billion has been agreed …

After a slow start to 2021, there looks to be light at the end of the tunnel highlighted by P&O Ferries recent announcement to take back market leadership on the English Channel. Owned vessel THE PRIDE OF BURGUNDY (28,128gt, 1900 LM, 1420pax, March 1993, SSW Fahr) has become P&O’s fifth vessel on the Dover-Calais route …

A Roadmap for Fossil Free Shipping Flows of money were already pouring into sustainable funds prior to Garth Brooks rendition of Amazing Grace at “green president” Biden’s inauguration. Electric Vehicle maker Tesla increased its market cap by an astonishing USD 500 billion in 2020. It is now more valuable than the world’s top eight automakers …

The UK Government’s £77.6 million freight contract agreement with leading RoRo (Roll-on/Roll-off) Operators Stena Line, DFDS, Brittany Ferries and P&O last month was deemed as “necessary to safeguard the smooth and successful flow of freight” as per Grant Shapps, Secretary of State for Transport. Essentially, freight capacity has been bought by the UK Government for the …

It has been a tough few years for the Vehicle Carrier market. We have seen charter rates for 6,500 CEU vessels fall by more than 40% to $10,000/day in 2020, demand for global light vehicles flatlined in 2018 then collapsed in 2020, and as a result values have come under significant pressure. The industry entered …