The Financial Times reports that during the pandemic, many older vessels were scrapped when the automotive industry was mothballed, but now, an unexpectedly sharp revival of the market, coupled with delays to the introduction of replacement shipping vessels, means transportation demand outstrips supply. According to the paper, Europe is the region with the largest increase in car imports, up by around 40 percent in 2023. "Partly, lots of cars are being moved around… and there haven't been many new buildings (of ships) coming into the market." The increased cost of shipping could also take the edge off Chinese manufacturers' competitive pricing, warned Matt Schmidt of Schmidt Automotive Research. Another strong card in China's hand is its dominance of global battery supply chains, through mineral resources.

Source: Forbes January 09, 2024 02:23 UTC