CIMC Raffles, a subsidiary of Chinese logistics and energy equipment maker China International Marine Containers (Group) Co Ltd, recently delivered a car-shipping vessel at Longkou in Shandong province, which will be used by Chinese electric vehicle maker BYD to ship its new energy vehicles overseas.

The vessel — BYD Explorer No.1 — was built by the Yantai, Shandong province-based company for international ship operator Zodiac Maritime. It was then chartered to BYD by the ship's owner.

It will be used specifically for shipping vehicles produced by Chinese makers to overseas markets.

With BYD strengthening its presence abroad, the development plays a significant role in the automaker's globalization push as it provides a guarantee for the rapid delivery and expansion of its overseas business, said CIMC Raffles.

The vessel will head to Xiaomo International Logistics Port in the Shenshan Special Cooperation Zone, around 80 miles (128.7 kilometers) east of Shenzhen, Guangdong province. Once there, it will load BYD vehicles before shipping them to Europe, said Li Minggao, vice-president of CIMC Raffles.

BYD Explorer No.1 is 199.9 meters long and 38 meters wide, with transport capacity of up to 7,000 vehicles and a maximum range reaching 15,800 nautical miles.

Powered by environmentally friendly liquefied natural gas, the vessel can significantly reduce emissions of nitrogen and sulfur oxides.

CIMC Raffles will step up technological innovation and work closely with partners to reduce carbon emissions and make greater contributions to the green development of the global shipping industry, Li said.

The delivery comes at a time when Chinese automakers are facing challenges in overseas shipments. As Chinese NEV exports gain momentum, the industry is struggling with a shortage of car-shipping vessels, which has resulted in price hikes for international shipping. Shippers and automakers alike are both rushing to order vessels to deal with the challenges.

According to a report by CCTV, there are approximately 700 car-shipping vessels worldwide. The number of vessels operated by Chinese shipowners accounts for less than 10 percent of the global capacity.

China is making big strides in auto exports.

The Shenzhen-based BYD sold 3.02 million vehicles last year, representing a 62 percent increase compared with 2022. That has made it the best-selling automaker in China and the most popular NEV maker in the world.

Overseas sales of BYD's new energy passenger cars soared 334 percent year-on-year to 243,000 units in 2023. The company has extended its footprint to more than 70 countries and regions globally.

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