Freight rates for modern car carriers are once again approaching the $100,000 per day mark, driven by the surge in Chinese electric vehicle exports.

Freight Rate Trends

According to VesselsValue, the average daily freight rate for car carriers is around $67,000, though new vessels can command even higher rates. Last week, the Atlas EMF joint venture (Atlas Maritime and European Maritime Finance) chartered the 7,000-car Clean Star to an unnamed Chinese operator for two years at $80,000 per day, just before the vessel’s delivery from the CIMC Raffles shipyard this month. In March, another new Atlas EMF car carrier, the 7,000-car Eco Star, was chartered by Wallenius Wilhelmsen for a year at $53,000 per day shortly after its delivery.

The sharp rise in freight rates over the past five months highlights the growing demand for modern car carriers. SAIC Anji Logistics, the shipping arm of SAIC Motor, recently chartered the new 7,060-car Lake Rotorua from Eastern Pacific Shipping at $90,000 per day after its delivery from the China Merchants Jinling Shipyard in Nanjing.

Historical Data and Current Trends

In August 2022, car carrier freight rates peaked at $100,000 per day, but fell by the end of 2024 following the introduction of a record number of new vessels. Currently, car exports from China continue to grow, sustaining strong demand for ships to transport them.

According to the China Association of Automobile Manufacturers, nearly 5.1 million vehicles were exported in the first six months of the year, a 65.3% increase over the previous year. Exports of new energy vehicles exceeded 2.3 million units, more than double last year’s figure. In June, car exports reached 1.037 million, up 75% year-on-year, marking the first time China’s monthly car exports surpassed one million units.

Demand for Tonnage and New Vessel Orders

Due to a shortage of tonnage, even older car carriers are securing high freight rates. Two SFL vessels, the 6,500-car SFL Composer and SFL Conductor, built in 2005 and 2006, were chartered by Cosco at about $40,000 per day for 34 months.

The rising demand for tonnage is also fueling new car carrier orders. Last year, only nine vessels were ordered, but by 2026, at least 40 new ships are on order. MSC’s subsidiary, Global Car Carriers, has ordered ten dual-fuel (LNG) car carriers: six with 8,600-car capacity and four with 7,000-car capacity, scheduled for delivery between 2028 and 2030. The larger ships will be built at China Merchants Heavy Industry Yizheng, with the others at CMHI Weihai and Guangzhou Shipyard International.

New Market Entrants

The expanding market has attracted new players, including China’s Zhongnan Shipping, which has ordered four 5,700-car carriers from Jiangsu Runyang Shipbuilding for delivery in 2028–2029.