Chinese vehicle exports and longer shipping routes are supporting car-carrier earnings, although rising vessel orders and possible European trade restrictions threaten that strength, according to Intermodal analysis published by Hellenic Shipping News. Nikos Tagoulis, Intermodal’s head of research, said China’s integrated automotive supply chain gives its manufacturers scale and cost advantages, while extended voyages restrict the number of ships available for employment.
Shipments from China to Europe and Latin America generate substantial demand measured by both vehicle volumes and distance travelled. Limited return cargoes and diversions around the Cape of Good Hope lengthen round trips, absorbing capacity. Routing remains mixed: some Chinese operators have resumed Suez Canal passages, while major European and Japanese operators still favour the Cape. Hellenic Shipping News reported that the one-year charter rate for a pure car and truck carrier with capacity for 6,500 car-equivalent units reached about $95,000 a day in September 2026, 21% above its five-year average.
Exporters are also using alternatives to dedicated car carriers. Specialised racks enable a standard 40-foot container to accommodate two to four passenger vehicles, depending on their size, while multipurpose vessels can transport cars on purpose-built flat racks. According to Tagoulis, COSCO arranged three containerised shipments carrying a combined 13,052 vehicles from China to Europe during 2026. Such movements nevertheless remain a small part of the market, with little effect on demand for container or multipurpose ships.
High earnings have encouraged fresh investment in dedicated carriers. Contracts reached 82 vessels in the first nine months of 2026, compared with nine in all of 2025 and a ten-year annual average of 35. The orderbook amounts to 26% of the existing fleet, above its historical average of 14%. However, 64% of ordered tonnage is due from 2028 onwards, delaying much of the additional supply. Chinese automakers’ own fleet expansion could also reduce their dependence on chartered ships.
Trade policy adds uncertainty. The report said the EU and China reportedly reached a preliminary understanding in October 2026 on restrictions for Chinese-built conventional and plug-in hybrid vehicles. Subject to implementation, the proposed four-year arrangement could start in December, initially limiting annual imports to 350,000 vehicles, with the quota rising 6% annually. Battery-electric vehicles would remain covered by separate anti-subsidy duties. Tagoulis said future shipping demand would depend partly on exporters finding alternative markets or expanding overseas production, while vessel deliveries and a possible wider return to Suez could ease capacity constraints.