Fredriksen-backed SFL tipped to join PCTC newbuilding rush with China order

Shipbroking and market sources indicate that the US-listed owner has contracted Yantai CIMC Raffles to build a single 7,000-CEU LNG dual-fuel vessel for delivery in 2029.

The Chinese shipbuilder recently secured a separate order from Zodiac Maritime for two vessels of the same size.

SFL Corp, which has been approached for comment, currently operates a fleet of seven car carriers built between 2005 and 2024. Five years ago, the company ordered four 7,000-CEU vessels at Guangzhou Shipyard International, all of which were delivered in 2023 and 2024.

Beyond car carriers, the owner is active in the container vessel, tanker, bulk carrier and offshore energy shipping segments. It also has five 16,800-TEU LNG dual-fuel container vessels under construction at New Times Shipbuilding.

The PCTC newbuilding market has regained momentum in recent months. A combination of surging Chinese vehicle exports, stronger time charter rates and elevated secondhand values has fuelled renewed investment interest.

Veson Nautical associate director of valuation and analytics Dan Nash told Riviera earlier this week that shipowners largely halted new orders last year after three years of intensive contracting between 2022 and 2024, which pushed the orderbook-to-fleet ratio to around 40%.

Data provided by Veson Nautical to Riviera show the ratio has since declined to approximately 20.4% in CEU terms, after reaching its lowest level since December 2022 at 20.2% in April.

Alongside Zodiac Maritime, MSC-owned Global Car Carriers, Sallaum Lines and Ray Car Carriers are among the owners to have placed PCTC newbuilding orders so far this year.