Car carriers riding the crest of a wave

Pure car carriers (PCCs) came of age in the same year that FTW was founded – 1973. Japan’s K Line launched the European Highway which carried 4 200 automobiles at the same time that John Marsh was launching FTW. The passage for the introduction of the large carrier was cleared in 1965, when MOL introduced a PCC with a capacity of 1 200 automobiles to support Japanese exports. With up to 13 cargo decks, modern PCTCs can transport 6 400 standard passenger cars at once. Today, the rise in the global auto trade is lifting the car carrier industry out of the global recession with far less damage than other shipping sectors have experienced, according a Drewry’s Car Carriers report. Global trade in motor vehicles will increase by about 3-4% per year over the next 15 years. South Africa continues to be a destination for PCCs, with some adjustment in routes to cater for market changes. National Association of Automobile Manufacturers (Naamsa) director Nico Vermeulen says in his review for the second quarter of 2013 that exports “remain under pressure as a result of the recession and debt crisis in the Eurozone. However, projected higher exports into Africa, Asia and North America along with the contribution of various new export programmes should enable the industry to achieve record production levels in 2013”. Aggregate exports for 2013 are predicted by Naamsa to reach about 337 000 vehicles compared to the 277 893 vehicles exported in 2012. In addition, imported vehicles account for around 71% of local new car sales – or 335 000 units in 2013, according to KPMG Africa Automotive leader Gavin Maile. The movement of vehicles to and from the coast and to dealers around the country sustains thousands of logistics jobs. Shipping companies that operate ro-ro vessels are among the most profitable at present. Shares in Wilhelm Wilhelmsen, the world’s largest vehicle transporter, have been climbing to records highs on news of a recovery of major auto markets. The shipping company reported second-quarter net income of $92 million, up from $70 million a year ago. INSERT 3-4% The predicted average annual increase in global trade in motor vehicles.