SFL Orders Four LNG Dual-Fuel Car Carriers in 363 Million Dollar Deal
Two of the 7,000 ceu vessels are already fixed to an Asia-based car manufacturer
SFL is putting another $363m into the car carrier market, ordering four LNG dual-fuel newbuildings in a fresh bet on a sector where yard capacity remains tight.
The four 7,000 ceu pure car and truck carriers are scheduled for delivery in 2029. Two have already been fixed to a major Asia-based car manufacturer for five years from delivery, with options for a further five years.
The firm charter period alone adds around $150m to SFL's charter backlog, and could double to $300m if the extension options are exercised. The other two ships are currently open, though management said it is already in discussions over the pair, pointing to attractive car carrier fundamentals and to shipyards being largely sold out well into 2030.
The pricing reflects that tightness. The order works out at an average cost of almost $91m per ship, against an average of roughly $76m for SFL's earlier four-ship LNG dual-fuel programme, an increase of about 20 percent per vessel between the two rounds.
That escalation is the practical consequence of a sold-out orderbook. With berth availability scarce into the next decade, owners committing to car carrier capacity now are paying for the slot as much as for the ship.
SFL is backed by John Fredriksen and operates a diversified fleet across shipping and offshore segments, employing much of it on long-term charter to counterparties in order to build contracted backlog rather than trade spot exposure.
The car carrier market has been among the firmer segments in recent years, supported by rising vehicle export volumes and by a fleet that spent much of the previous decade under-ordered.
