Shifting Gears: The Impact of New U.S. Auto Tariffs on Car Carrier Prospects

Auto tariffs in the U.S. are shaking things up for foreign car manufacturers and their transport partners, particularly the pure car and truck carrier (PCTC) operators. These new 25 percent tariffs announced by the White House have sent share prices of major car carrier companies tumbling.

As an example, Hoegh’s stock has plummeted by 10 percent this week alone, while K Line dropped four percent. Wallenius Wilhelmsen saw a nine percent decline, and Hyundai Glovis is down nearly ten percent. These companies had been thriving recently due too strong export activity from China, but a slowdown in U.S. imports could spell trouble for their future.

Interestingly, it seems automakers were bracing for these tariffs ahead of time; they ramped up shipments earlier this year. Data from Esgian reveals that there were five additional ro-ro shipments from Europe to the U.S. in February compared to last year and eight more from East Asia in January.

The impact of these tariffs will mainly hit trade routes originating from south Korea, Japan, and Europe—the key suppliers of vehicles to the U.S.—while China’s influence remains minimal with less than two percent market share in complete cars sold stateside.

However, PCTC operators face challenges even within China itself. The country is not just exporting cars; it’s also developing its own fleet of national carriers to compete with established players globally. Li Gang from China Citic Financial Leasing highlighted that this “national vehicles and national transport” initiative aims to cut shipping costs while ensuring capacity for local manufacturers.