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Mon, December 9, 2024

A Boom in Earnings for Car-Carrying Ships Is Starting to Fade

The article from Bloomberg, published on December 10, 2024, discusses the diminishing boom in earnings for car-carrying ships. Previously, these ships experienced a surge in demand and profitability due to a combination of factors including a global increase in car sales, supply chain disruptions, and a shortage of shipping capacity. However, recent trends indicate that the earnings peak has passed. The decline is attributed to several reasons: the normalization of supply chains, an increase in the number of car-carrying vessels, and a slowdown in new car production due to economic uncertainties and shifts towards electric vehicles which require less space. Additionally, the article notes that while rates are still above historical averages, the market is cooling down, with shipping companies now facing overcapacity and reduced rates, prompting a more cautious outlook for the future of this niche shipping sector.

Read the Full Bloomberg L.P. Article at:
[ https://www.bloomberg.com/news/articles/2024-12-10/a-boom-in-earnings-for-car-carrying-ships-is-starting-to-fade ]