As Chinese vehicle exports have surged, securing pure car and truck carriers (PCTCs) has become a pressing industry issue. Only a few years ago most Chinese vehicle exports moved on ships operated by Japanese, Norwegian and South Korean carriers.

When capacity tightened, freight rates jumped, and Chinese automakers and logistics firms moved to secure their own vessels. Chinese shipyards won successive orders for large PCTCs, and delivered ships have begun entering service.

A car carrier is a specialised vessel with multiple decks on which vehicles are driven on and off. Unlike container ships, the cargo is bulky and low in density, so available capacity effectively sets a ceiling on export volumes.

The pattern is appearing first on European, South American and Middle Eastern routes. Combining cargo and vessel control within one company improves resilience to freight-rate swings, but leaves the same firm exposed to idle capacity if exports slow.

Established carriers are responding. Some are locking in China-origin cargo through long-term contracts; others are ordering newbuildings to enlarge their fleets.

For South Korea's shipbuilders the effect cuts both ways. The PCTC newbuilding market has grown, but competition with Chinese yards for those orders has intensified. Korean shipping lines are also reviewing route structures on the assumption of a declining share of China-origin cargo.