China’s auto exports hit a record 4.91 million units in 2023, marking another milestone for the country’s booming automotive industry. This robust growth can be attributed to China’s enhanced shipping capability and its increasing globalization efforts.
From surpassing 1 million units in 2012 to exceeding 2 million in 2021 and 3 million in 2022, China’s auto exports have witnessed exponential growth. In fact, the country achieved the remarkable feat of exporting over 4 million units in just the first 11 months of 2023. This surge in exports highlights the rapid expansion of the Chinese auto industry and its ability to compete on a global scale.
China’s improved logistics capabilities play a pivotal role in facilitating this significant increase in auto exports. The country employs a variety of methods to transport vehicles, including ocean shipping, China-Europe freight train service, and road transportation. Among these, ocean shipping remains the most popular option.
The Taicang port in east China’s Jiangsu province serves as an excellent example of China’s enhanced shipping infrastructure. Located on the southern bank of the Yangtze River, the port is bustling with activity. Semi-trailers carrying various brands of vehicles line up at the entrance, waiting to be loaded onto vessels bound for different parts of the world.
At the Taicang International Container Terminal, near the berth of a vessel operated by China COSCO Shipping Corporation Limited, a towering 40-meter-high gantry crane efficiently loads containers onto the ship’s cargo hold. This vessel is scheduled to set sail for Europe the following day.
Hao Yong, the on-site supervisor for vehicle shipping at the terminal, revealed that the facility shipped an average of 7,000 to 8,000 vehicles per month in 2023, with peak numbers reaching nearly 30,000 units in December alone. However, the current storage yard’s capacity of 20,000 standard parking spaces is struggling to keep up with the rapidly growing business volume.
Wang Haibo, the manager on duty at the logistics company running the terminal, mentioned that the facility is still under construction, with an investment exceeding 2 billion yuan ($281.16 million). Once completed, it will have an annual throughput capacity of 1.3 million vehicles, significantly boosting the port’s handling capabilities.
The Taicang port’s burgeoning activity is reflected in the customs statistics from Nanjing, the capital of Jiangsu province. These figures indicate that 397,300 vehicles were exported from the Taicang port in the first 11 months of 2023, representing a staggering 157 percent year-on-year increase.
The surge in auto exports has also sparked a rising demand for roll-on/roll-off (RoRo) vessels. Shipbuilders are working at full capacity to meet this demand and are improving their efficiency through digital and intelligent upgrades. In the first half of 2023, China Merchants Jinling Shipyard delivered 21 RoRo vessels, with orders booked until 2027.
New energy vehicles play a crucial role in China’s auto exports, accounting for a significant portion of the total shipments. In 2023, China exported an impressive 1.203 million units of new energy vehicles, showcasing a remarkable 77.6 percent year-on-year growth.
Transporting new energy vehicles comes with specific requirements, such as maintaining a battery charge level between 20 percent and 50 percent during long-haul transportation. To ensure the safety of the vehicles, charging facilities are installed on board the vessels. Additionally, specialized fire prevention systems, fire detection equipment, and fire-resistant materials are utilized to minimize risks associated with battery leakage, short circuits, and fires.
At a terminal within the Taicang port, a vessel operated by COSCO Shipping Specialized Carriers Co., Ltd. embarked on a journey to South America, carrying 2,797 new energy vehicles. Each vehicle was monitored by an infrared temperature imaging device within the cargo hold. If the temperature exceeded a certain threshold, the sprinkler system would activate, safeguarding the vehicles during transportation.
COSCO Shipping Specialized Carriers Co., Ltd. has responded to the requirements of new energy vehicle transportation by collaborating with designing institutes and shipyards. Together, they have enhanced the structural strength of cargo holds, enabling the company to transport new energy vehicles efficiently. The company currently possesses over 30 multi-purpose vessels capable of carrying these vehicles.
To align with the industry’s focus on sustainability, the shipping industry is transitioning towards a green and low-carbon approach. COSCO Shipping Specialized Carriers Co., Ltd. leads the charge in this regard, having ordered 24 large dual-fuel liquefied natural gas (LNG) vehicle carriers. Similarly, China Merchants Jinling Shipyard equipped its RoRo vessels with LNG tanks and hybrid battery technology to reduce the emission of toxic gases.
The adoption of these eco-friendly measures has substantial benefits. Compared to traditional fuel-powered container ships, the dual-fuel ultra-large container ships can reduce carbon emissions by 20 percent, nitrogen oxide emissions by 85 percent, and sulfur emissions by 99 percent. These significant reductions contribute to a cleaner environment and decreased environmental pollution.
To nurture and strengthen its competitive advantage in automobile exports, various regions and business associations in China have facilitated collaboration between automobile and shipping companies. They have also guided them in signing medium to long-term agreements, promoting synergy and efficiency.
For instance, in the first half of 2022, SAIC Anji Logistics Co., Ltd., a subsidiary of Chinese carmaker SAIC Motor specializing in automotive logistics, ordered two dual-fuel vehicle carriers and three ships from Jiangnan Shipyard. Additionally, SAIC Anji Logistics established a joint venture automotive supply chain company with COSCO Shipping Specialized Carriers Co., Ltd. and other partners.
Furthermore, Chinese automobile manufacturer Chery, in conjunction with Wuhu Shipyard, established a production base for vehicle carriers in Weihai, Shandong province. The facility focuses on producing carriers with a capacity of 6,000 vehicles, 8-ton Panamax bulk carriers, and other cutting-edge products.
This trend of car manufacturers venturing into the realm of ship ownership reflects the continuous growth and internationalization of the Chinese automotive industry. Equally, shipping companies that accommodate customized orders find new avenues to hone their expertise and strengthen their position in the high-end market.
China’s remarkable achievements in auto exports, buoyed by its enhanced shipping capability, are a testament to the country’s prowess in the global automotive industry. With the continuous expansion of logistics infrastructure and the adoption of sustainable measures, China is set to further solidify its position as a dominant player in the international auto market.
