Stable earnings and longer routes support the market after a slow start of the year

The PCTC market remained stable in June, showing signs of steady growth after a subdued start to the year. New EU car registrations rose 1.6% year-on-year in May, while battery electric vehicles reached a 15.4% market share. Strong seaborne volumes in April and May – partly frontloaded ahead of US tariff changes – also contributed to a more balanced near-term outlook.

US fee reductions boost sentiment
This month, car carrier operators welcomed a proposed fee reduction in the US, which would cut port charges from roughly USD 1 million to USD 270,000 per call for a typical 6,500-CEU vessel. This change, set to take effect in late 2025, is expected to significantly reduce operating costs for the segment.

Geopolitics and rerouting impact fleet efficiency
The Iran-Israel conflict had indirect effects on the PCTC segment as well. Ongoing disruptions in the Suez Canal pushed some vessels to reroute via the Cape of Good Hope, lengthening voyages and reducing effective vessel supply. While the PCTC market was less affected than tankers or gas carriers, these route inefficiencies may support firmer rates and improved profitability in the near term.