Business Korea — 2023-02-14
Maritime and Ports
Pure car and truck carriers (PCTCs) are becoming increasingly insufficient in East Asia as China’s car exports are growing fast.
According to Clarksons Research, the daily charter rate for a PCTC with a capacity of 6,500 CEU, that is, 6,500 cars was US$25,000 in 2021 but topped US$110,000 in December last year.
This has to do with China’s fast-increasing car exports. Specifically, last year, China's car exports totaled 3.11 million units, up 54.4% from 2021, making the country the second-largest car exporter in the world. Its electric and hybrid car exports jumped 120% and 70% of the exports went to Europe.
The resultant higher charter rate and carrier shortage are already affecting minor South Korean carmakers, which are incapable of carrier chartering for relatively smaller export volumes. Renault Korea’s Arkana exports from Busan to Europe are being affected and SsangYong Motor is using containers for some of its export volume. The Renault Arkana accounted for more than 80% of Renault Korea’s exports last year.