China car export boom drives car carrier charter rates up 65%

China's auto industry is leaning harder on exports as domestic demand weakens, tightening global capacity for vehicle shipping. Passenger-car sales in China fell 20% year on year to 1.47 million vehicles in July, the 10th straight monthly decline, while exports rose 88% to 923,000 vehicles, according to the China Passenger Car Association. In the first half, domestic car sales dropped by 2.3 million vehicles from a year earlier, also a 20% decline, while exports climbed 71%. The export surge has left specialized roll-on/roll-off car carriers booked years ahead and pushed charter rates for the vessels up 65% this year. Some automakers are also loading vehicles into shipping containers to get them to Europe, Australia and Latin America as dedicated vessel space tightens.

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