Chinese shipbuilders win all 17 global orders for PCTC in January amid China’s booming car exports

[beijingwalker]

Chinese shipbuilders win all 17 global orders for PCTC in January amid China’s booming car exports
By Xiong Xinyi
Published: Feb 25, 2023 03:45 PM

Photo: CFP

Chinese shipbuilders has won all 17 new orders for pure car and truck carrier (PCTC) worldwide in January, as domestic enterprises break Japanese and South Korean monopoly of PCTC construction thanks to the nation’s booming car exports.

According to data from UK-based Clarkson Research, the 17 new orders totaled a combined 510,000 deadweight tons with 152,000 parking spots.

Analysts noted that China’s booming exports in new-energy vehicles (NEVs) has boosted market demand for PCTC, as domestic shipbuilders have been continuously growing global market share in the sector.

China’s rapid development and expansion in NEVs along with the upgrading and transforming of leading giants has further driven the transportation demand and capacity, Zheng Ping, chief analyst of industry news chineseport.cn, told the Global Times on Saturday.

Zheng noted that the transportation for vehicles used to be mainly taken by traditional shipping companies as the import demand was greater than China’s export needs.

However, Zheng has witnessed an explosive growth for the PCTC market as Chinese carmakers have been catching up and leading in the global NEVs sector with a surging market demand from overseas, expecting a rapid development for the PCTC market in the next three to five years.

China exported 3.11 million vehicles in 2022, up 54.4 percent compared with 2021, while the export of NEVs recorded a year-on-year increase of 1.2 times to 679,000, data from China Association of Automobile Manufactures showed.

Amid growing exports, Chinese car manufactures such as BYD and SAIC have also started making strategic moves in vehicle transportation.

The car carriers now should establish a larger deck to transport more vehicles as NEVs are relatively heavier due to their batteries on top of more enlarged passenger cars models, Zhang Zhuo, a leading expert from Shanghai Merchant Ship Design and Research Institute said, according to a China Media Group report.

Zheng added that domestic car enterprises can control logistics cost from the perspective of supply chain while ensuring transportation efficiency by involving into the vessel construction process.

State-owned giant China State Shipbuilding Corp (CSSC) claimed nearly 50 percent of all PCTC orders in January, the Shanghai Securities News reported. Since 2021, CSSC has received orders for 35 PCTC vessels with car-carrying capacities of 7,000 to 9,200, with a global market share of 27 percent.

Chinese shipbuilders win all 17 global orders for PCTC in January amid China’s booming car exports - Global Times

www.globaltimes.cn

 

[FuturePAF]

What happened to the rest of the world’s car production? Much of the drop predated Covid.

Now is probably the time for a savvy entrepreneur to buy engine and transmission rights from Suzuki, and well as the means to make them in Pakistan and be able to build them in Pakistan. A lot of people won’t be able to afford to buy new cars, and will need to rebuild their engines and transmissions.

https://twitter.com/x/status/1630235351594807297

 

[Song Hong]

China is export excessive steel capacity to the whole world via car export.

Actually China shipyard profit is about 3%. Under the lens of capitalism, Chinese shipmakers are useless. But on a holistic POV, with economy of scale and supply chain, China build destroyer at 20% or less price compared to US.

 

[S.Y.A]

What happened to the rest of the world’s car production? Much of the drop predated Covid.

Now is probably the time for a savvy entrepreneur to buy engine and transmission rights from Suzuki, and well as the means to make them in Pakistan and be able to build them in Pakistan. A lot of people won’t be able to afford to buy new cars, and will need to rebuild their engines and transmissions.

https://twitter.com/x/status/1630235351594807297

neither our saiths, nor our govts and babus have enough vision or mental capacity to make this happen.

 

[DabbuSardar]

What happened to the rest of the world’s car production? Much of the drop predated Covid.

Now is probably the time for a savvy entrepreneur to buy engine and transmission rights from Suzuki, and well as the means to make them in Pakistan and be able to build them in Pakistan. A lot of people won’t be able to afford to buy new cars, and will need to rebuild their engines and transmissions.

https://twitter.com/x/status/1630235351594807297

What happened is whats been happening all along, Americans were great once had Detroit, then came cheaper germans, then came cheaper Japanese, then Koreans, today China, anybody’s guess who comes next.
Manufacturing will move to lowest cost continuously, be it cars or washing machines.

 

[Indos]

What happened is whats been happening all along, Americans were great once had Detroit, then came cheaper germans, then came cheaper Japanese, then Koreans, today China, anybody’s guess who comes next.
Manufacturing will move to lowest cost continuously, be it cars or washing machines.

Nationalism is getting stronger nowadays. American will not buy your plane if it is not manufactured in the US. The same like how many car are still being produced in USA.

Even Vietnam new car, Finvast, is building car factory in USA.

There you still have Tesla with some of their largest factories in USA to serve US market

 

[DabbuSardar]

Nationalism is getting stronger nowadays. American will not buy your plane if it is not manufactured in the US. The same like how many car are still being produced in USA.

Even Vietnam new car, Finvast, is building car factory in USA.

There you still have Tesla with some of their largest factories in USA to serve US market

You will find Americans being least nationalistic when it comes to business and pricing, why else is america been buying foreign made cars and iPhones, planes is a wrong example, nobody matches boeing and airbus as of now, military planes isnt even a competition.

 

[Indos]

You will find Americans being least nationalistic when it comes to business and pricing, why else is america been buying foreign made cars and iPhones, planes is a wrong example, nobody matches boeing and airbus as of now, military planes isnt even a competition.

Those foreign cars are produced in USA, you dont get what I mean dont you ?

I am not talking about Boeing, even small planes need to be produced in USA. Indonesia Aerospace for example has office in USA since 1990's and it is previously set up to enter US market for N 250 plane. The previous plan is to set up production plant in Seatle, USA. The office is now changing course and become aerospace design consultant company.

Honda Jet also has its factory in USA.

 

[DabbuSardar]

Those foreign cars are produced in USA, you dont get what I mean dont you ?

I am not talking about Boeing, even small planes need to be produced in USA. Indonesia Aerospace for example has office in USA since 1990's and it is previously set up to enter US market for N 250 plane. The previous plan is to set up production plant in Seatle, USA. The office is now changing course and become aerospace design consultant company.

View attachment 918186

Honda Jet also has its factory in USA.

Maybe because indonesian and other manufacturers weren’t good enough for airlines to buy their aircraft?


Check out how Brazilian Embraer has carved out a niche market for itself, it is even used by US govt agencies for smaller craft needs.

Point is, if your product is good enough to compete, US is an open market.

 

[Indos]

Maybe because indonesian and other manufacturers weren’t good enough for airlines to buy their aircraft?


Check out how Brazilian Embraer has carved out a niche market for itself, it is even used by US govt agencies for smaller craft needs.

Point is, if your product is good enough to compete, US is an open market.

Indonesian Aerospace wanted to produce N250 plane in USA because it cannot sell the aircraft smoothly without having a factory in USA. Even foreign plane will get difficulty to acquire US Type certification as the requirement to enter US market. The grand plan is to use N250 entry to another plane program, N2130 which will be comparable to Boeing planes.

So Indonesian Aerospace strategist which is already understanding US behavior already understand about this.

USA has soft measure for several countries like European and their neighbor as they have some previous trade deal with them, hence you can see Mexico also can export cars easily to USA.

----------------------------

The IPTN N-2130 was a proposed 80-130 passenger commuter airliner of original design by IPTN (now Indonesian Aerospace). The N-2130 was estimated to cost two billion US dollars. The project was cancelled in 1998 due to the Asian financial crisis.

The aircraft has similarities with the Boeing 737 and Airbus A318.

IPTN N-2130 - Wikipedia

en.wikipedia.org

---------------------------

We also have seen US tight control to their other strategic industries like in semi conductors. Even Japan and Korea have still had huge car production in the country. If they go to other countries, setting up factory there, it is usually to capture that country market as it will make the cars get less tax if they are produced there.

 

[DabbuSardar]

The grand plan is to use N250 entry to another plane program, N2130 which will be comparable to Boeing planes.

Lets talk when that grand plan happens, right now there is nothing to show.

 

[Indos]

Lets talk when that grand plan happens, right now there is nothing to show.

Well indeed the plane has already been tested in wind tunnel during late 1990's

 

[tonyget]

Actually China shipyard profit is about 3%. Under the lens of capitalism, Chinese shipmakers are useless.

Interesting you bring the profit part up. Below is a table compare the largest three Chinese ship builders vs Korean ship builders in 2021

As you can see，Chinese ship builders have a much more healthy business operations than their Korean counterpart. As we all know，the world ship building industry is dominated by China and Korea at the moment. I wonder how long the Koreans can sustain this unprofitable business model

 

[tonyget]

Nationalism is getting stronger nowadays. American will not buy your plane if it is not manufactured in the US. The same like how many car are still being produced in USA.

Even Vietnam new car, Finvast, is building car factory in USA.

There you still have Tesla with some of their largest factories in USA to serve US market

Many people have this simplistic thinking that "import=bad" "export=good"，which is totally wrong from a economic perspective. Remember money has no intrinsic value，it is merely an exchange media，goods and services are the real wealth.

When you export，you are giving your weath out，in exchange for money. That money is meant to bring more wealth back into the country，which is done by imports. If you only export but not import，than your net wealth is decreasing

 

[Song Hong]

Many people have this simplistic thinking that "import=bad" "export=good"，which is totally wrong from a economic perspective. Remember money has no intrinsic value，it is merely an exchange media，goods and services are the real wealth.

When you export，you are giving your weath out，in exchange for money. That money is meant to bring more wealth back into the country，which is done by imports. If you only export but not import，than your net wealth is decreasing

China can become a big power by defeating others shipbuilding. Very few people aware the importance of shipbuilding. The world most powerful nation is also the strongest naval power.

To be a strong naval power, nation needs to build ship efficiently. To do it, you need to have a big non military shipbuilding business.

Never mind ship building margin is low, most important is to drive Korean out of business.