China’s SAIC Anji Logistics has picked two domestic shipyards to build seven large conventional-fuelled but methanol-ready pure car/truck carrier (PCTC) newbuildings to be delivered between 2025 and 2026.
A source with knowledge of the car carrier sector said China Merchants Industry Holdings (CMHI) Jinling and Jiangnan Shipyard have been contracted by SAIC Anji to build four and three 8,900-ceu PCTCs respectively.
The series of newbuildings follow a tender that SAIC Anji floated in November last year. The 8,900-ceu vessels will be by far the largest PCTCs it owns.
Shipbuilding sources said SAIC Anji’s is paying more than $100m each for the PCTC newbuildings — a record price level for the ship type.
The continued strong demand for new PCTCs and shipyards’ strong orderbooks were cited as factors that caused shipbuilding price of the ship to increase.
SAIC Anji is one of the most active Chinese car carriers, expanding its fleet due to China’s exponential automobile export growth.
The company’s order spree at CMHI Jinling and Jiangnan brings its total number of PCTC newbuildings on order to 12.
Its earlier five newbuildings — two of 7,600 teu and three of 7,800 ceu — are under construction at Jiangnan Shipyard.
The LNG-fuelled vessels were ordered between October 2021 and May last year at about $85m apiece.
Headquartered in Shanghai, SAIC Anji was previously known as Anji Automotive Logistics. The company controls 18 car carriers of between 246 ceu and 4,300 ceu.
SAIC Anji recently inked a long-term contract-of-affreightment with Guangzhou Ocean Car Carrier — a newly established joint venture between Cosco Shipping Specialised Carriers, SAIC Anji Logistics and Shanghai International Port Group’s SIPG Logistics.
The details of the COA were not disclosed but the length of the deal is 10 years. SAIC Anji is the major shareholder of the joint company, with a 65% stake.
Guangzhou Ocean Car Carrier will focus on international trade and was reported to have a plan to control 21 LNG-fuelled PCTC newbuildings of between 7,000-ceu and 8,600-ceu that will be delivered by shipyards from second half of 2024.
Car carrier sources believed 15 of the 21 new ships that Guangzhou Ocean Car Carrier is going to control are chartered from Cosco Shipping Specialised Carriers.
The Chinese company has 15 PCTCs under construction at domestic shipyards and was reported to be in discussion with shipyards for six to eight more vessels.
SAIC Motor is not the only Chinese automaker that is building up its own fleet of car carriers. Rival BYD is also joining the red-hot sector.
The Shenzhen company ordered six PCTC newbuildings — two 7,700-ceu and four 9,400-ceu in November at three shipyards for 2025 delivery.
The Chinese car export industry is going through rapid growth.
China’s 2021 export volume surpassed Germany’s amounting 2.02m. Last year, the car export volume grew to 3.11m despite chip shortages and the country’s Covid lockdown.
The China Association of Automobile Manufacturers predicts that after 2030, China's auto exports may reach 10m or more.
