Seven Yield secures long-term charters for LNG-powered car carriers

Seven Yield has entered into five-year time charter agreements with a major Chinese automobile manufacturer for two pure car and truck carriers (PCTCs), Siem Confucius and Siem Aristotle.

The agreements will provide additional contracted employment for the two vessels, with Siem Confucius scheduled to enter its new charter in 2027 and Siem Aristotle following in 2028.

The identity of the Chinese automobile manufacturer has not been disclosed, while the company has also not provided details of the agreed charter rates or other financial terms.

According to Seven Yield, the contracts will support its long-term contracted revenue base by securing a further five years of employment for each vessel.

LNG dual-fuel vessels secure new employment

Built in 2020, Siem Confucius and Siem Aristotle are sister vessels equipped with LNG dual-fuel propulsion systems.

According to Seven Yield, they were the world’s first deep-sea pure car and truck carriers fitted with LNG dual-fuel propulsion technology.

Each vessel has a carrying capacity of 7,500 car equivalent units (CEU), with an approximate length of 200 metres and a breadth of 38 metres.

The vessels are designed for the transportation of cars and trucks on deep-sea routes, forming part of the specialised Ro-Ro shipping segment serving international vehicle trade.

Strengthening contracted vessel employment

The new agreements extend the contracted employment of both PCTCs beyond their existing charter arrangements.

The staggered commencement dates mean that the vessels will begin their respective five-year charter periods in different years, rather than entering service under the new agreements simultaneously.

Seven Yield said the contracts strengthen its long-term revenue visibility by providing additional employment for the two vessels.

The announcement does not specify the vessels’ intended trading routes, the manufacturer’s identity or the financial value of the agreements.