Seven Yield, a Luxembourg-based shipowner, has signed five-year charter agreements for two LNG-based car carriers with a major Chinese automotive manufacturer. These agreements allow the vessels to continue operating for the next decade.
Contract Details
The contracts include the sister ships Siem Confucius and Siem Aristotle, which were built in 2020 and have a capacity of 7,500 car equivalent units (ceu). The start date for these new contracts will be 2027 and 2028, respectively. Seven Yield has not disclosed the name of the car manufacturer, nor the charter rates and total contract value.
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Ship Features
These two vessels are recognized as the world's first dual-fuel LNG car carriers. Each of these ships is approximately 200 meters long and 38 meters wide. They are specifically designed for the international distribution activities of the German manufacturer Volkswagen.
The ships were commissioned in 2020 under the collaboration of Seven Yield, Siem Car Carriers, and Volkswagen, replacing conventional fossil fuel-powered vessels in this manufacturer's transatlantic logistics network.
Current Status of Seven Yield
The new charter agreements provide Seven Yield with five more years of contractual employment for each vessel. The company has a diverse marine leasing portfolio that includes 18 vessels, comprising eight car carriers, six roro ships, two cargo ships, and two others. The latest figures released from the company's portfolio in September indicated that approximately $700 million in contractual revenue is available.
These developments come as Chinese automotive manufacturers, particularly BYD, seek greater control over their international transportation arrangements. BYD has recently confirmed that it has secured 10 additional vessels, although their contractual arrangements have not been fully disclosed.
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