The proliferation of Chinese car brands is now an intrinsic part of the global market. China is no longer just an exporter, but an industrial player fully integrated into the global automotive system. In 2025, Chinese exports skyrocketed by over 20%, with over 7 million vehicles, knocking Japan off the top spot. The trend accelerated in the first quarter of 2026 with a 47% year-on-year increase, despite the Lunar New Year slowdown.
This boom, driven by giants such as BYD, MG (SAIC), Chery, Geely and Leapmotor, is reshaping market shares at the expense of traditional European and Japanese manufacturers.
The surge in production is currently having a significant impact on shipping as well. The heavy flow of traffic from Asia is monopolizing the entire global fleet. Shipping routes have, in fact, become longer, increasing the overall demand for transport in relation to the miles covered. These longer voyages have paralyzed hold capacity, reducing the amount of stowage space available on the market.
This shortage of capacity persists despite a massive investment programme in new tonnage over the last few years. According to Lloyd’s List, following the delivery of seventy-two 3,000 – 9,000 TEU vessels last year, with zero demolitions, a further 60 vessels will enter service in 2026, mainly giant LCTCs with a capacity exceeding 9,000 TEUs.
The increased production of Chinese electric cars has therefore led to an acute shortage of specialised PCC (Pure Car Carrier) and PCTC (Pure Car and Truck Carrier) vessels. As a result, daily spot freight rates from the Far East have soared to record levels, prompting many operators to divert traffic to container shipping, which currently offers more cost-effective logistics solutions.
“Strong demand coupled with a shortage of cargo space has inevitably triggered a new wave of pressure on the market,” said a manager at a leading shipping agency, who asked to remain anonymous.
“Cargo flows that were traditionally intended for PCTC or Ro-Ro vessels are now being diverted to container ships, causing freight rates to soar,” he added, pointing out that June and July are already fully booked: “And it won’t be easy to find any remaining space even for August. Shippers who until now have been able to load small consignments (parcels) onto Ro/Ro vessels without any problems are now being turned away.”
According to our source, Chinese car manufacturers have required their partners to utilise their full contracted capacity to meet the massive demand for vehicles from Europe and the Mediterranean region. “As a result, those operating in the spot market are now forced to resort to container services. However, this shift entails significant challenges in terms of stuffing and unlashing operations, given that OEMs prefer traditional transport methods, which minimise the risk of vehicle damage.”
In short, the unstoppable rise of the Chinese automotive industry is reshaping the competitive landscape and necessitating a complex reorganisation of international logistics, as the saturation of cargo holds and the inevitable shift towards container transport shows.
In reporting its Q1 financial results, Wallenius Wilhelmsen, a leading shipping company specialising in new car shipping, pointed out that demand for maritime transport remains very strong, with solid volumes and high fleet utilisation, particularly on outbound routes from Asia. At the same time, the conflict in the Middle East and an increasingly tight charter market are putting significant pressure on net fuel (bunker) costs and capacity.
According to the company’s CEO, Lasse Kristoffersen, the 2026 results will be affected by a sharp rise in costs, driven by higher fuel prices and limited availability of vessels.
Meanwhile, trends in trade flows continue to favour Asian exporters. Whilst volumes leaving Asia recorded only a slight decline of 1% compared with the previous quarter, shipments from Europe to the United States plummeted by 12%. This increasingly pronounced gap highlights – according to Wallenius – a structural trend that has been underway since 2025, driven mainly by strong growth in Chinese exports.
It is highly likely that, until the new LCTC vessels are fully operational, the spot market will face turbulent times, with record freight rates and complex operational challenges due to a shortage of capacity.
Translation by Giles Foster
