Car carrier owners are not worried about possible European Union tariffs on Chinese electric vehicles.
Following news on Wednesday that the bloc would start taking customs registration on the vehicles, owners downplayed the investigation as political posturing that might not end up having a large impact on markets at DNB’s Shipping and Energy conference.
Hoegh Autoliners finance chief Per Oivind Rosmo called the investigation a “bump in the road” for the segment.
“[It is] something that’s politically driven, by unions in France specifically,” he said.
Both Rosmo and Wallenius Wilhelmsen chief executive Lasse Kristoffersen said the volumes they carry out of China are small, despite the growth of automobile exports from China — now the world’s largest exporter — helping to keep the car carrier market undersupplied.
“They said they wanted to look into it,” Kristoffersen said. “They looked into it.”
“Maybe it’s more likely than not after this announcement.”
Some in the segment downplayed the possibility the bloc’s anti-subsidy investigation could have an impact on the market after it began in October.
Panellists echoed a similar sentiment on Thursday for the same reasons: That German automakers were building in China, while southern European brands were not, with the assumption that the dichotomy would prevent tariffs.
But the decision from the European Commission could mean charges as early as July, even though the investigation into potentially unfair subsidies is not set to finish until November.
During the event, Rosmo said European electric vehicle manufacturers have supply chains in China, which could complicate matters.
Kristoffersen said it was up to the EU to find balance.
He said Chinese electric vehicle manufacturers have some space to pay tariffs and still maintain competitive pricing.
“My personal view ... is just it’s not going to be 0 or 1,” Kristoffersen said. “It’s not going to be ‘it’s only Chinese’ or ‘it’s all Chinese’.”
The news, though, appeared to spook investors.
Wallenius Wilhelmsen shares opened on Wednesday at NOK 101.10 ($9.67) and had fallen to NOK 87.80 in late trading on Thursday.
Hoegh Autoliners saw its shares crash from NOK 109.50 at the opening on Wednesday to NOK 90.90 on Thursday afternoon.
