Hyundai Glovis uses containers to ship cars as PCTC shortage stings

Hyundai Glovis CEO Lee Kyoo-bok said on Friday that the company has shipped cars in containers to make up for the tight availability of pure car and truck transporters (PCTCs).

This is the first time that Hyundai’s logistics unit has admitted that it has been affected by a short supply of PCTCs.

Li, speaking after the release of Glovis H1 23 results, said its PCTC fleet of 72 owned and chartered vessels is insufficient to meet the post-pandemic recovery in vehicle exports and the company will need more vessels.

Glovis’ net profit for the first half was KRW 574.33 billion ($436.42 million), down 4% from the same period last year. Profitability was also affected by the high costs, with the company’s commitment to contract rates concluded in 2022, which prevented an increase in prices.

Hyundai Motor is the third South Korean automaker to begin transporting vehicles in containers, after KG Mobility (formerly SsangYong Motor) and Renault Korea. During the pandemic, older PCTCs were demolished and fleet renewal was slow, with many countries imposing movement restrictions, resulting in a scarcity of PCTC vehicles to meet recovered vehicle demand. PCTC rental rates exceed $110,000 per day.

Mr. Lee’s revelation dispelled the perception that Hyundai Motor was isolated against a lack of PCTC because, unlike KG and Renault Korea, it had its own shipping operation.

He said Glovis plans to improve its H2 23 profit margin by charging shippers more.

It will expand its PCTC fleet, including increasing vessel capacity to 8,000 units from 6,000 units. Glovis has arranged to lease between six and eight new PCTC vehicles next year, and four more in 2025, increasing its capacity by 25%.