The pure car and truck carrier (PCTC) market has seen a strong rebound in newbuilding orders this year, driven by rapid growth in Chinese vehicle exports
China’s vehicle exports have been rising by more than 50% year on year in 2026 and are now approximately ten times higher than in 2019, Veson Nautical associate director of valuation and analytics Dan Nash told Riviera.
“This is a remarkable structural shift in just a few years,” he said.
Mr Nash noted that shipowners virtually stopped ordering vessels last year following three years of strong newbuilding activity between 2022 and 2024, which pushed the orderbook-to-fleet ratio to around 40%.
Data provided by Veson Nautical to Riviera show that the orderbook-to-fleet ratio has since fallen to approximately 20.4% in CEU terms, after reaching its lowest level since December 2022 in April (20.2%).
“Shipowners are buying back into the mantra that China will continue exporting and demand will remain firm,” Mr Nash said.
Notably, more than 10% of China’s car exports are currently being transported on container vessels due to insufficient RoRo capacity, “a structural constraint that underscores the fleet’s inability to keep pace with demand,” he added.
Time-charter rates are also strengthening. A standard vehicle carrier currently earns around US$61,700 per day on a one-year charter, the highest level recorded in more than a year.
Another supportive factor for newbuilding investment is the elevated secondhand PCTC market. According to Veson Nautical, vessel values have appreciated by around 11% during the first half of 2026, based on a standard 6,500-CEU vessel built in 2010.
“These levels make energy-efficient newbuildings an increasingly attractive option for well-capitalised owners prepared to wait up to three years for delivery,” Mr Nash said.
The outlook also remains bullish. With China continuing to drive demand and vessel supply remaining fundamentally tight, Mr Nash expects ordering activity to pick up during the second half of the year.
Major owners return to newbuildings
Among the companies placing orders this year is MSC-owned Global Car Carriers, which has been particularly active in China. The company has ordered four 7,000-CEU dual-fuel LNG vessels at Jinling Shipyard Weihai and Guangzhou Shipyard International, with two vessels allocated to each yard. It has also contracted four 8,600-CEU dual-fuel LNG vessels at Jinling Shipyard Jiangsu.
Separately, Sallaum Lines recently ordered two 8,600-CEU dual-fuel vessels at Xiamen Shipbuilding, with options for additional units. Zodiac Maritime has also been linked to a contract at Yantai Raffles for two 7,000-CEU dual-fuel vessels.
Earlier this year, Ray Car Carriers was reported to have contracted HD Hyundai for two vessels worth approximately US$269M.
Most recently, K Line ordered four LNG-fuelled car carriers at China Merchants Jinling Shipyard (Nanjing). The vessels will be operated by a wholly owned subsidiary serving the European shortsea shipping market.
