Home AsiaChina BYD Launch BYD EXPLORER NO.1 $BYD


by S. Jack Heffernan Ph.D

BYD, the Chinese automaker, marked a significant expansion with the maiden voyage of its first-ever vessel, “BYD EXPLORER NO.1,” at a port in Shenzhen, Guangdong Province. The vehicle carrier vessel, leased to BYD, carries over 5,000 new energy vehicles (NEVs) and is destined for the ports of Vlissingen in the Netherlands and Bremerhaven in Germany.

The vessel, part of BYD’s growing shipping fleet, was constructed by China International Marine Containers (Group) Co., Ltd. (CIMC) for international ship management company Zodiac Maritime. It represents BYD’s entry into the league of Chinese automakers operating their own shipping fleets to expedite car exports.

China’s General Administration of Customs reported a significant surge in auto exports, reaching 5.22 million vehicles in 2023, reflecting a year-on-year increase of 57.4%. As China’s automobile industry shifts toward increased exports, automakers face challenges such as rising rents, shipping capacity constraints, and fierce competition for available car carriers.

Major Chinese automakers, including BYD, Chery, and SAIC, have responded by establishing their own shipping fleets to navigate these challenges. The move aims to enhance control over logistics and counter the impact of soaring shipping costs.

Global shipping research institution Clarksons Research noted a substantial increase in one-year time charter rates for car carriers from August 2020 to the end of November 2023. The rate for a 6,500 Car Equivalent Unit (CEU) pure car and truck carrier (PCTC) surged from $10,000 per day to $115,000 per day, highlighting the intense competition for shipping capacity.

Guangzhou Shipyard International Company Limited successfully fulfilled an order for two BYD PCTCs in January 2023, contributing to BYD’s growing shipping capabilities. Other automakers, such as Chery and SAIC, are also venturing into establishing their global shipping fleets to address the challenges posed by the dynamic shipping market.

In recent years, the global automobile shipping market has been dominated by automakers in Japan, South Korea, and other countries. However, with the flourishing shipbuilding industry and surging automobile exports, Chinese automakers are increasingly utilizing domestically-built ships for transportation.

Chinese shipyards, including Guangzhou Shipyard International Company Limited, have secured the majority of new orders for car carriers globally. As the trend continues, Chinese shipping fleets are expected to significantly increase their global proportion of car carrier capacity, potentially reaching the fourth position globally.

Industry experts emphasize the strategic significance of establishing shipping fleets for Chinese automakers. Beyond cost competitiveness, these fleets enhance the stability of the supply chain, ensuring timely product delivery to overseas customers.

Xie Xiaowen, an expert with the China Communications and Transportation Association, highlights that acquiring ships symbolizes the continuous development and internationalization of China’s automobile industry. This strategic move not only reduces transportation costs but also ensures the stability of the export business.

Chen Jia, a researcher at Renmin University of China, notes that Chinese automakers’ shipping fleets have the potential to break the longstanding monopoly of foreign shipping companies, laying a solid foundation for their global trajectory. The move underscores the determination of Chinese automakers to navigate challenges, secure their supply chains, and bolster their global competitiveness.

Shayne Heffernan

You may also like


Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.