Chinese logistics firm buys giant cargo ship to meet car export demand

A Chinese logistics company has put the country's first large car carrier ship into operation, signaling the rapidly expanding car export market.

The ship, named "Jiuyangxing," boasts a capacity of 7,000 cars and will commence its maiden voyage from Shanghai Nangang Terminal to the Waigaoqiao Port Area, carrying 3,000 Hyundai and Lincoln vehicles.

The Jiuyangxing is classified as a "ro-ro" ship, short for "roll-on/roll-off," indicating its ability to accommodate vehicles that can drive on and off the ship independently, eliminating the need for cranes.

Essentially, a ro-ro ship functions as a floating multi-level garage, facilitating faster loading and unloading, ultimately expediting car deliveries.

Prior to acquiring the Jiuyangxing, car shippers resorted to modifying existing ships, such as container ships and pulp carriers, to enhance their car-carrying capacity. However, ro-ro ships remain the most efficient method for loading and unloading cars at ports.

The Nangang Terminal can load 5,000 cars onto a ro-ro ship within 24 hours, compared to three to five days required for other ship types.

Recognizing the burgeoning demand, car shippers have placed orders for new ro-ro ships with shipyards. However, the construction of a large, multi-level ro-ro ship can take up to two years, which is inadequate to address the immediate backlog of shipping orders.

China's car export industry has witnessed unprecedented growth in recent years. Government data reveals a 95.9 percent surge in car exports in 2021, reaching 2.12 million units, followed by a 56.8 percent increase in 2022, totaling 3.32 million units.

With nearly four million cars exported in the first ten months of 2023, China is poised to overtake its neighbor Japan as the world's leading car exporter.