Charter agreements for millions

Bentiaraq Ottosen, Atassut, who is a member of Inatsisartut, has asked Naalakkersuisut via paragraph 37 questions about Royal Arctic Line A/S' charter agreements.

According to Aqqaluaq B. Egede, Inuit Ataqatigiit, who is Naalakkersuisoq for Social Affairs, Labour Market, Housing, Infrastructure and Outlying Districts, RAL spends a double-digit million amount on renting foreign container ships every year.

Long-term agreements

Royal Arctic Line's fleet consists of 10 ships. According to Aqqaluaq B. Egede, RAL periodically uses charter agreements from other shipping companies, but also that the shipping company's own ships can be chartered to other shipping companies.

RAL states that the shipping company is part of a VesselSharing Agreement (VSA), which is an agreement between two or more shipping companies, where they share space on each other's ships on certain routes, with Eimskib, an Icelandic shipping company and logistics company headquartered in Reykjavík. This agreement consists of operating the route between Reykjavik-Nuuk-Reykjavik.

- In the collaboration, one ship is pooled from RAL and two from Eimskib. As a result of the concession, RAL has the full cargo capacity on the Iceland-Greenland-Iceland route, which is why Eimskib's two ships are technically chartered by RAL, the shipping company states.

The VSA agreement has been in force for around five years. In 2023, RAL sold the container ship Mary Arctica to Eimskib, which was renamed Silver Mary.

- In addition, there is an agreement to charter in the Silver Mary for a minimum of 180 days per year. RAL thus charters in three ships on long-term agreements, the shipping company informs Bentiaraq Ottosen.

Short-term agreements

In 2023, RAL chartered in the Liberian-owned container ship Jonni Ritscher as a replacement for Tukuma Arctica, while this was at the shipyard. In 2025, the ship Silver Arctica was chartered in connection with the renovation of the port of Maniitsoq. Thus, the shipping company has chartered in two container ships on short-term agreements in the period from 202 to 2025, RAL informs.

Millions of kroner expenses

Bentiaraq Ottosen wants to get clarity about the expenses for chartering container ships in 2024, to which RAL states that the expenses were 40 million kroner this year.

At the same time, the shipping company states that the annual average expenses for chartering in the period from 2022 to 2025 were 33 million kroner.

- In comparison, the annual costs for Malik Arctica (without bunkers) have been between 36 and 39 million kroner in the same period, RAL states.

The total expenses in RAL have been just over 1.1 billion kroner in the period from 2021 to 2025, and the costs for time charter thus constitute an average of 2.8 percent, the response note states.

Unacceptable

RAL has entered into an agreement with Naalakkersuisut on a gradual increase in freight rates from 2024 to 2026 to ensure finances for fleet renewal, as many ships are reaching the end of their service life. The rates have thus increased by 3.1 percent in 2025 and 2.2 percent in 2026.

Bentiaraq Ottosen therefore finds it unacceptable that the shipping company spends a double-digit million a year to charter foreign container ships.

- RAL should be independent of help from other shipping companies, and the money used for chartering could be used in other areas in society, and not go to foreign shipping companies, he says.

In November last year, Bentiaraq Ottosen resigned as Naalakkersuisut for Social Affairs, Labour Market, Home Affairs and Environment, and is currently a candidate for the general election.