John Fredriksen-backed SFL is putting another $363m into the car carrier market, ordering four LNG dual-fuel pure car and truck carriers (PCTCs) as yard capacity remains tight, according to Splash247.
The four 7,000 ceu (car equivalent unit) newbuildings are scheduled for delivery in 2029. Splash247 reported that two have already been fixed to a major Asia-based car manufacturer for five years from delivery, with options for another five years. The firm 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, marking a departure for SFL, which has traditionally been reluctant to order newbuildings without employment attached. Management said it is already in discussions over the pair and pointed to attractive car carrier fundamentals and shipyards being largely sold out well into 2030.
Vessel specification and pricing
SFL has not disclosed the yard, but shipbuilding databases show the four-ship programme spread equally between Guangzhou Shipyard International and Yantai CIMC Raffles, according to Splash247. The order effectively launches a second wave of modern 7,000 ceu tonnage for SFL. The company’s earlier four-ship LNG dual-fuel programme, reported by Splash in 2021 and 2022, ultimately saw two vessels tied to Volkswagen and another two to K Line; those ships were delivered during 2023 and 2024.
| Metric | Earlier four-ship programme | New four-ship order |
|---|---|---|
| Reported/ordered | 2021–2022 | 2026 |
| Capacity | 7,000 ceu (modern tonnage) | 7,000 ceu |
| Aggregate yard commitments | ~$304.5m | $363m |
| Average cost per ship | ~$76m | ~$91m |
| Delivery | 2023–2024 | 2029 |
| Employment | Two to Volkswagen, two to K Line | Two to Asia-based carmaker; two open |
According to Splash247, the average cost per vessel has risen from roughly $76m in the earlier quartet to almost $91m in the new order.
Fleet expansion and charter backlog
SFL currently has seven car carriers on the water. Adding the new quartet will take the portfolio to 11 ships. The company’s car carrier backlog stood at $578m at the end of the second quarter, with an average remaining charter duration of 5.9 years. It has also locked away its two older 6,500 ceu units for another three years once their existing Volkswagen employment ends, adding a further $83m of backlog.
These deals come as SFL juggles about $1.2bn of remaining capex commitments across its wider fleet. The company has raised roughly $100m of fresh equity this year and ended June with $273m of available liquidity, according to Splash247.
What it means for car carrier shippers
For freight forwarders and automotive shippers relying on ro-ro ocean capacity, the order signals that vessel supply remains a constraint, with shipyards largely sold out into 2030 and prices rising. The fact that two of the four new ships are still open for charter suggests SFL expects continued demand from car manufacturers and other roll-on/roll-off users. The two vessels already committed to an unnamed major Asia-based car manufacturer for five years underline the long-term charter market in the sector.
Watch list
- SFL’s ongoing discussions over the two unchartered vessels
- Whether the Asia-based car manufacturer exercises its option for an additional five years
- Delivery timing for the four newbuildings in 2029
- SFL’s remaining $1.2bn capex commitments and its $273m liquidity position
Splash247 reported that the two open vessels are still being discussed with potential charterers, while the firm five-year charter on the first two ships could be extended by another five years. How SFL manages its remaining capex commitments and liquidity will determine how these vessels are financed.
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