The market remains strong – trade tensions continue to pose a long-term risk
The PCTC market remained robust throughout April, with charter rates consistently high compared to historical levels, albeit slightly below the 2023-2024 records.
Market sentiment has been shaped by changes in trade policies as the United States plans to introduce new import tariffs on foreign-built vehicles by early May, which could potentially impact future demand and trade flows.
Global car sales experienced an encouraging rebound in March, driven by strong performances in the United Kingdom, Japan, and the United States, offering some positive signals following a period of weaker activity. However, caution is advised, as seasonal factors typically bolster March sales, and sustained growth will be necessary to confirm a genuine recovery.
The EU and China are negotiating an agreement on a minimum price for vehicles
Trade tensions among major economies have also persisted, with the EU and China exploring alternatives to tariffs through a minimum price agreement. Nonetheless, U.S. tariffs remain a risk to global car exports and could impact the volumes of vehicles transported by sea in the future.
Sources: Clarksons, Fearnleys Securities, Shipping Watch