China Sets Sail with Record-Breaking Car Carriers, Signaling Global Export Ambitions

China has launched two record-breaking car carriers, highlighting its rapid rise as the world’s largest car exporter. The Anji Ansheng, capable of transporting 9,500 vehicles, set a new global record, while Yuan Hai Kou can carry 7,000 cars. These ships reflect China’s growing dominance in vehicle exports, which surged 23% in 2022 to 6.41 million units. To address shipping shortages, firms like SAIC and COSCO are expanding fleets. However, U.S. scrutiny may challenge China’s growing global influence.

Two newly built car-carrying vessels from China have embarked on their first journeys, marking a significant milestone in the country's booming vehicle export industry. These ships, designed to transport thousands of vehicles, are further evidence of China's rapidly expanding role in the global automotive market. The South China Morning Post (SCMP) reports that one of these vessels has even set a new capacity record, underscoring China’s ambition to dominate car exports.

A New Global Leader in Car Transport

The Anji Ansheng, owned by SAIC Anji Logistics, a subsidiary of state-owned car manufacturer SAIC Motor, is now the world’s largest car carrier. With the capacity to transport up to 9,500 vehicles, it has surpassed the previous record held by the BYD Shenzhen, which could carry 9,200 vehicles. The Anji Ansheng departed from Shanghai carrying approximately 7,000 Chinese-manufactured cars destined for Europe.

SAIC Anji Logistics currently operates a fleet of 35 car carriers, including 15 dedicated to international shipping. The company plans to expand its global fleet to 22 vessels by next year, aiming to serve critical markets such as Mexico, Western Europe, South America, Southeast Asia, Oceania, and the Middle East.

China's Growing Dominance in Automotive Exports

China has solidified its position as the world’s largest car exporter, a title it has earned through remarkable growth in recent years. According to customs data, China exported 6.41 million vehicles in 2022, a year-on-year increase of 23%. The country's ability to produce and export vehicles at scale has been further bolstered by its expertise in shipbuilding, enabling it to construct specialized roll-on/roll-off (RoRo) vessels that cater specifically to the automotive trade.

Another Major Maiden Voyage

The second vessel, Yuan Hai Kou, owned by COSCO Shipping Car Carriers, also began its maiden voyage on the same day. Departing from Guangzhou, it carried around 4,000 vehicles bound for Mediterranean destinations such as Greece, Turkey, Italy, and Tunisia. With a maximum capacity of 7,000 cars, Yuan Hai Kou highlights China’s ability to deliver large-scale shipping solutions. COSCO, already operating a fleet of 20 car carriers, has ambitious plans to grow its fleet to 30 vessels by next year.

Challenges and Strategic Responses

The surge in Chinese car exports has created a noticeable shortage of capacity on RoRo ships, which are the primary mode of transport for vehicles. In response, Chinese carmakers, including BYD, Chery, and SAIC, have adopted an “independent shipping” strategy. By establishing their own fleets, these manufacturers aim to reduce logistical costs and maintain stability in their export operations.

However, China's dominance in shipbuilding and automotive exports has drawn scrutiny from the United States. In a move to counterbalance China’s influence, the U.S. plans to impose higher fees on Chinese-built or operated vessels arriving at its ports starting in October.

Future Implications

As China continues to scale up its car export capabilities, it is solidifying its status as a global leader in both vehicle production and maritime logistics. The record-breaking capacities of vessels like the Anji Ansheng and Yuan Hai Kou represent a significant leap forward in the efficiency and reach of Chinese vehicle exports. With growing fleets and routes spanning the globe, China is poised to maintain its competitive edge in this critical industry.

Source: This article is based on information originally reported by the SCMP.