Maritime shipping boom as Chinese auto exports soar
Ammon – Chinese car exports have witnessed remarkable growth in recent years, according to a report by the Chinese People’s Daily newspaper, in which it said that the country’s car exports exceeded 2 million cars in 2021 and increased to more than 3 million in 2022.
In the first half of this year, China exported 2.14 million cars, an annual increase of 75.7 percent.
China’s superior competitiveness in the new electric vehicle industry has helped Chinese auto companies greatly expand their global market reach.
Liu Jitao, director of the International Shipping Port of Wei Gaoqiao, confirmed that the port is currently witnessing the export of more than 6,900 vehicles per day, a number that is expected to witness a significant increase during the second half of this year.
Thanks to the rapid growth in exports, shipping companies are experiencing difficulties in meeting the huge demand for their services. In this regard, Xuchong Chan, president of the Tianjin Automotive Import and Export Company, says that the cost of shipping has increased significantly, as his company expects that the cost of shipping a small car to the Middle East will reach about 10 thousand yuan ($ 1394).
COSCO Shipping and SAIC Angie announced earlier this year their cooperation to establish a joint venture company, Yuan Hai Car Transport Company, which intends to invest in expanding the freight fleet to provide logistical support for Chinese car exports to foreign markets.
With the large increase in shipping demand, Wei Gao Qiao Shipbuilding Company has so far received 10 orders to build automobile cargo ships, each costing about $100 million, which represents a significant change in the company’s position compared to the previous one.
Li Yanqing, secretary-general of the China Shipbuilding Industry Association, said that ship freight accounts for more than 90 percent of China’s auto export means, especially car transport ships, noting that there are 700 auto transport ships in the world, including less than 100 ships in China.
Sky News Arabia