On February 16, South Korea's "Herald Economy" published an article saying that not long ago, a giant ship carrying more than 5,000 electric vehicles departed from a port in northern China. Five days later, the ship passed through Singapore and is currently on its way to India. The final destinations are the port of Würlissingen in the Netherlands and the port of Bremerhaven in Germany. This is because most cars are sold in Europe. The name of the ship is BYD Trailblazer 1. The ship is the first in a large fleet of ships under construction by BYD.
According to the American magazine MIT Technology Review, "this marks BYD's ambition to build a shipping business through global automotive**". BYD became the world's largest manufacturer of pure electric vehicles in the fourth quarter of last year.
BYD has increased its overseas exports by offering a variety of options ranging from reasonable sedans to luxury SUVs. BYD's export volume in 2022 is 550,000 units, up from 240,000 units last year. However, in order to maximize profits from the booming popularity overseas, it faced the challenge of expanding its business from the automotive** to the shipping industry.
Automobile exports generally use "car carriers". Unlike ships that use cranes to lift and load cargo, car carriers are equipped with drivable ramps, making the whole process much simpler.
But in the past few years, car carriers have been tight. New orders fell due to the retirement of older ships, while the 2008 financial crisis and the industry's shift to environmentally friendly fuels led to a decrease in new orders. In addition, most automakers have long-standing relationships with shipping companies or own their own vessels. Companies such as Nissan and Toyota each have car carriers that can carry tens of thousands of vehicles. But Chinese car carriers account for only 2 percent of the world's transport capacity8%。
As a result, the cost of using car carriers has skyrocketed for Chinese automakers. According to data from Clarkson Research, a specialist in shipbuilding and maritime market in the UK, the daily charter of car carriers** soared to 11$50,000. is the 2019 average **1Nearly 7 times the $70,000.
At present, the new demand for car carriers is mainly from China. China is the world's largest exporter of automobiles. China exports a wide range of vehicles, including traditional internal combustion engine vehicles, electric vehicles, and Tesla electric vehicles produced at the Shanghai Gigafactory. Insufficient transport capacity is an obstacle. That's why Chinese EV manufacturers are starting their own transportation business.
In December 2022, BYD incorporated international cargo transportation and ship management business into its business purpose in the company's articles of association. BYD took delivery of the Trailblazer 1 early last month, and plans to add seven ships over the next two years. BYD also plans to let other Chinese companies use the ships.
It's not just BYD. China's SAIC Motor Group will export 1.2 million vehicles in 2023. Of these, 24% are electric vehicles. SAIC Motor established a shipping subsidiary in 2021. The latest-generation car carrier set sail for the first time last month, with a capacity of 7,600 vehicles. The ship, like the BYD Trailblazer 1, is currently heading to Europe.
Since it takes years to build a huge car carrier, it is expected that it will take some more time for Chinese companies to complete the construction of a maritime transport empire.
MIT Technology Review argues that "having your own fleet or chartering from a domestic Chinese shipping company can reduce costs." The competitiveness of Chinese cars overseas will be further enhanced, and just as the automotive industries of Japan and South Korea have made these two countries grow into global leaders in the maritime sector, electric vehicles can also make China a powerhouse in the shipping sector. ”