Stable revenues and longer sailing routes are supporting the market after a slow start to the year
The PCTC market remained steady in June, demonstrating consistent growth following a lackluster start to the year.
New car registrations in the European Union rose by 1.6% year-on-year in May, with battery electric vehicles reaching a 15.4% market share. Robust seaborne volumes in April and May—some of which were brought forward ahead of US tariff changes—also contributed to a more balanced short-term outlook.
Port fee reductions in the US are bolstering market confidence
This month, car carrier operators welcomed a proposed reduction in US port fees, which would lower the cost of a typical call for a 6,500 CEU vessel from around USD 1 million to USD 270,000. Scheduled to take effect in late 2025, this measure is expected to significantly decrease operating costs for the segment.
Geopolitical factors and vessel rerouting affect fleet efficiency
The Iran-Israel conflict also indirectly affected the PCTC segment. Continued disruptions in the Suez Canal prompted some vessels to reroute via the Cape of Good Hope, resulting in longer voyages and decreasing effective fleet availability. While the PCTC market was less impacted than the tanker or gas carrier segments, these operational inefficiencies could help support firmer rates and higher profitability in the short term.