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