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Vehicle carrier sector on road to normalisation following four-year bull run

  • Record high vehicle carrier secondhand prices and charter rates have peaked
  • Large backlog of newbuilding deliveries are entering the market in 2025 and beyond
  • Sector is most advanced in the introduction of dual-fuel vessels
  • Switch of car shipping away from containerships will assist in reducing any overcapacity

Strong investment in alternative-fuel vehicle carrier newbuildings since 2022 will see a record number of new ships delivered in 2025. Coupled with a potential return to the Suez Canal, market sentiment has weakened, but significant overcapacity appears unlikely

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