Orders for the construction of Chinese automobile transport ships have increased significantly; It has reached its highest levels thanks to the record increase in exports of electric vehicles, and this will result in an increase in the size of Beijing’s fleet, to rank fourth in the world upon completion, instead of eighth currently, according to recent data.

Data from shipping consulting company Vizon Natical showed that Chinese companies ordered the construction of 47 new ships in the first quarter of this year, representing 25% of the total global orders for this time period.

International newspapers have pointed out the crisis of the accumulation of Chinese electric cars in European ports, and that many of the giant Asian companies in this sector have taken the ports of the European continent as storage places for their products until they are released to the EU markets.

Beijing's current fleet represents 33 Chinese car transport ships; Therefore, it ranks eighth in the world in terms of the largest number owned by each country. It is also preceded by countries, led by Japan with 283 ships, Norway with 102, South Korea with 72, then the Isle of Man, which belongs to the British Crown, with 61 ships.

Orders for the construction of Chinese automobile transport ships were distributed in the first quarter of this year among a number of major producing companies, such as SAIC Motor, Chery Automobile, and BYD, which is considered a giant of electric cars.

In addition to those with purchase orders for Chinese car transport ships, important shipping companies are added, such as "Cosco" and "China Merchants", which register their orders from other Chinese companies for the benefit of producers.

Data from the shipping consulting company "Vizon Natical" announced that the share of local companies exceeds 80% of orders for building Chinese car transport ships. It reached 82% last week, according to Reuters.

As a result of the intensity of competition in China's local market, and the decline in prices it caused, in addition to the economic slowdown in the country, car producers resorted to global markets where demand for their units increases, which is compensated by lower prices by increasing exports at higher prices.

China surpassed Japan last year in the volume of automobile exports. BYD has exported more than 240,000 cars, representing 8% of total global sales, and it plans to increase exports to 400,000 cars in 2024.

The increase in the production of local companies and the demand of foreigners to take advantage of the lower cost encouraged an increase in demand for the construction of Chinese car transport ships in the first quarter of 2024. A number of major international companies began production in China, such as the American “Tesla” and the German “Volkswagen”, targeting export. And exploit Beijing's low cost advantages for all links of the supply chain.

The high cost of shipping and government support for producers has led to many companies requesting to purchase Chinese car transport ships themselves, instead of using shipping companies.

At the end of 2023, the daily cost of a ship transporting 6,500 cars reached 115,000 US dollars at the end of 2023, which is more than 7 times the cost in 2019, according to data from the consulting company “Clarkson”.

Both America and Europe accused China of trying to flood their markets with cheap cars, while the Chinese government said that relying on vast production capacity alone could undermine opportunities for innovation and overestimate the role that the state plays in driving growth.

US Treasury Secretary Janet Yellen raised the overproduction crisis with Chinese officials, on the sidelines of her recent 4-day visit to Beijing.

Currently, Chinese Commerce Minister Wang Wentao is visiting Europe and is expected to discuss with the Commission an investigation into whether Chinese electric vehicle producers are unfairly benefiting from subsidies.