2024 Car Shipping Forecast

2024 Car Shipping Forecast
Published on January 15, 2024

The global car carrier market is expected to grow at a steady pace of 2.80%, from USD 10.4 billion in 2023 to USD 13.7 billion by 2033. The increased transportation activities, rising road accidents, and the growing popularity of electric vehicles are among the many factors that influence this growth.

This positive news indicates a prosperous future for the car shipping industry in the coming years; this also encourages those interested in the field to join the market that already sees growing competition.

Furthermore, reports show that the European market accounts for a 44.5% share of the global market in 2023. It is expected to remain dominant due to the region’s strong automotive industry.

The technological advancements in car carrier designs, such as eco-friendly and fuel-efficient transport solutions, are playing a critical role in fueling growth opportunities in the car carrier market.

Fuel-efficient transport solutions translate into cost-effective shipping processes, driving more businesses and individuals to invest in this shipping method. Also, green carriers will increase revenue from environment proponents, looking for efficient shipping vessels to reduce their carbon footprint.

An Overview of the Car Shipping Market in 2023

  1. 2023 was a booming year for the car shipping industry, with a record 17% growth, hitting 23.7 million car shipments.
  2. Exceptional trade growth and high demand led to supply shortages and tight market conditions.
  3. Shipping companies enjoyed record profits and invested in new ships (80 orders in 2023 with space for a total of 677,000 cars, making up 37% of the existing fleet).

An Outlook for Car Shipping in 2024

The fleet growth the car shipping market has witnessed in the passing year is expected to continue growing in the next year as well. Also, these highlights will shape the car shipping industry in 2024:

  1. Positive momentum is expected to continue but with slight uncertainties arising from the anticipated market stabilization after a period of high growth.
  2. Fleet growth is projected at 8% annually in 2024 and 2025.
  3. Potential for a “cool down” in the car market due to expected deliveries of previously ordered vehicles.

However, the market remains optimistic, with ongoing fleet expansion to meet future demand. The increased car, truck, and excavator production, and the stable heavy machinery production are the major factors driving this optimism.

2024 Key Car Shipping Trends

  1. Enclosed car carriers are expected to experience increased demand due to their superior car protection compared to other carriers.
  2. The increasing popularity of electric vehicles will drive the demand for specialized car carriers to accommodate their specific needs.
  3. The e-commerce sector is expected to boost the car shipping market as more cars are sold online.
  4. In 2024, we anticipate shipping 24.5 million cars, marking an increase from the 23.7 million cars shipped in 2023.
  5. The car shipping industry is expected to create new jobs in areas such as logistics, operations, and sales.

Overall, 2024 will be a promising year for the car shipping industry as the market is expected to be stable, with continued growth driven by the mentioned factors. Still, the rising fuel cost could create challenges, putting pressure on car shipping companies and leading to higher shipping rates; this is primarily the case with companies not investing in the latest solutions for efficient car shipping processes.

Tempus Logix is a professional and top-rated car shipping company with years of experience shipping all vehicle types nationwide. The company’s dedicated team can arrange efficient, affordable, high-quality shipping services anytime.

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