Automotive and Transportation
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Automotive and Transportation
by (remove) : Bloomberg L.P.
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Tue, December 10, 2024
[ 08:41 AM ] - United States, Bloomberg L.P.
A Boom in Earnings for Car-Carrying Ships Is Starting to Fade
Sat, December 7, 2024
[ 01:21 AM ] - United States, Bloomberg L.P.
VW, Stellantis Brace For Another Rough Year in Auto Industry
Fri, December 6, 2024
[ 11:42 PM ] - United States, Bloomberg L.P.
Auto Production Tumbles in Canada Before Trump's Return as Detroit Pulls Back

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


Published on 2024-12-10 08:41:41 - Bloomberg L.P.
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  • Since the pandemic, earnings for ships that move cars across the oceans have soared to record levels, fueled by booming global trade in vehicles. The rally 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 ]

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