BYD expands its fleet as Chinese Government calls for action
NewsThere are shortages in car carrying capacity, especially in China, where the export of electric vehicles has soared in the past two years.
Hyundai Glovis to build six more LNG-powered car carriers
Hyundai Glovis announces a US$750 million investment in fleet expansion amid strong market fundamentals.
Hyundai Glovis, the logistics unit of South Korean auto giant Hyundai Motor Group, has revealed plans to invest into the construction of six LNG dual-fuel Pure Car and Truck Carriers (PCTCs).
The vessels will have a capacity of 10,800 CEU (car equivalent units), placing them among the world’s largest based on car-carrying capacity.
The US$ 750 million investment is in line with the company’s commitment to ensuring stable shipping and logistics services for its clientele over the mid-to-long term, Hyundai Glovis said in a stock exchange filing. While the exact shipyard for construction remains undisclosed, Hyundai Glovis anticipates taking delivery of the sextet by the end of 2028.
This move aligns with the company’s strategic objective of building a new fleet powered by dual-fuel LNG engines in line with the ever stricter international environmental regulations, as well its ambitious 2045 carbon neutrality roadmap.
The announcement comes on the heels of the company’s investment in up to 12 LNG dual-fuel car carrier newbuilds, for which it has earmarked a substantial $1.85 billion budget.
Namely, at the end of 2023, Hyundai Glovis ordered the first batch of these vessels via Seaspan Corporation. Under the deal, Seaspan contracted China State Shipbuilding Corporation’s Shanghai Waigaoqiao Shipbuilding for the construction of six firm orders and four optional 10,800 CEU dual-fuel PCTCs.
In parallel, South Korean shipping giant HMM has also entered the LNG dual-fuel car carrier sector, striking a landmark deal with China State Shipbuilding Corporation (CSSC) for up to ten 10,800 CEU vessels, including 6 firm and four optional units. The vessels were chartered out to Hyundai Glovis.
Hyundai Glovis aims for delivery in 2027, allowing for a 20-year operational service lifespan for the ships.
The investments have been supported by a historically strong car carrier market with car sales poised to surpass pre-Covid levels.
According to data from Clarksons Research from December 2023, transportation costs have soared, with charter rates up 10% year-on-year to a record $115,000 per day. Seaborne car trade is projected to surge by 17% year-on-year to 23.7 million vehicles in 2023, driven by robust export growth from Asia. Furthermore, despite an increase in the ordering of newbuilds, a significant shortage of capacity is expected to persist for at least the next couple of years.
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