Meet BYD’s Own Car-shipping Vessels

From our office window in Singapore, we keep seeing these very large vessels which do not carry containers or any commodity in bulk.

We did not see all too many of them before. In the past they were rare(r).

We researched a bit and they are RORO or ro-ro ships. Large cargo ships designed to carry wheeled cargo, especially electric vehicles.

Typically four to six of these ships used to be built worldwide every year. But for 2023 China has ordered sixty(!) car carriers, and another sixty ROROs are to be added in 2024. These are ships that can transport 4,500 to 8,000 cars.

Starting in 2025, when these freighters are all fully operational, we will see a car tsunami out of China. This will lead to a brutal predatory battle and price war in the automotive sector. Let’s see who prevails.

BYD has always been one of the first ones to drive this change. Their first chartered cargo ship has set sail as the carmaker ramps up exports of its electric vehicles, reports Caixin. The BYD Explorer No. 1, capable of carrying 7,000 cars, is bound for Europe after making a stop in the Chinese port of Yantai and soon Shenzhen. The ship is managed by a 3rd party and is being rented to BYD, according to a WeChat post by China International Marine Containers Group Co. Ltd, (CIMC), which built the vessel.

BYD clinched the crown as the world’s largest EV manufacturer from Tesla Inc. in the fourth quarter, so they have the scale.

What will be the EU’s response?