BYD expands EV shipping fleet as wars upend freight costs and key trade routes
China's BYD is expanding its fleet of shipping vessels for electric vehicles amid rising freight costs and disrupted trade routes due to conflicts in major shipping lanes. The company plans to increase its fleet from eight carriers to 18 by 2029, each capable of transporting about 9,200 cars. BYD's own ships could reduce costs by up to 40% compared to renting, according to industry estimates.
This move aims to bolster BYD's global market share and intensify competition with automakers like Tesla and traditional U.S. brands. BYD's decision to own its fleet comes as shipping costs have surged due to conflicts in the Red Sea and Strait of Hormuz, as well as China's shift towards EVs. With BYD targeting 2.5 million car sales overseas next year, owning a fleet provides more control over routes and pricing.
The company has invested over $687 million in building its own car carriers since 2022, recognizing the importance of controlling its distribution network.
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