China’s auto factories are building so many cars for export that the global shipping industry can’t keep up.
Specialized car carriers, essentially floating parking garages, are booked out years ahead to export cars from Chinese factories. Rates to charter ships are up 65% this year on the surging demand to move vehicles out of China.
Chinese carmakers are flooding foreign markets because of fierce competition between more than 100 domestic auto brands, overproduction and a sluggish economy. Now, the shipping industry is navigating skyrocketing rates and scarce capacity.
