Shipping air?; Tracking and forecasting the shipments of new and used cars

Abstract

Flows of new cars span the globe, using dedicated car carriers carrying up to 6,500 cars. A more recent development involves the shipping of used cars. This paper presents the results from our research around the world, featuring Japan as a major used car supplier, while more recently, South Korea has emerged as a significant player. As production is increasingly localised, flows of new vehicles are declining; used vehicle flows are seen by some shipping lines as a market opportunity to improve vessel utilisation and enhance margins. Future trends will be driven by newly motorising markets. Although these could absorb considerable volumes from the established industrial countries, some governments are placing restrictions on such imports. The shippers´ side has seen consolidation in recent years, as well as vertical integration. Shippers serving used car flows have split into those that have become more specialised, and those engaged in more informal flows using cars as backloads on reefers, fishing vessels, container ships and general cargo ships. The vessels themselves have seen a trend away from pure car carriers (PCC) towards more flexible pure car and truck carriers (PCTC). This in turn is also having a wider impact on shipping logistics.