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FILE PHOTO: Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo

FILE PHOTO: Containers are seen on the Maersk's Triple-E giant container ship Majestic Maersk, one of the world's largest container ships, next to cranes at the APM Terminals in the port of Algeciras, Spain January 20, 2023. REUTERS/Jon Nazca/File Photo

SFL Secures New 5-Year Charters for Four Containerships

Mike Schuler
Total Views: 163
July 8, 2024

SFL Corporation Ltd. (NYSE: SFL) announced today the agreement of new 5-year time charters for four 8,700 TEU container vessels, adding approximately $240 million to the company’s fixed rate charter backlog.

The vessels, which have been on charter to A.P. Moller – Maersk since their construction, were originally set to have their charters expire in 2025. Built between 2014 and 2015, the vessels feature a modern, wide-beam design and fuel-efficient electronic engines. As part of the new charter agreement, SFL will invest in upgrading the vessels, increasing their cargo capacity to 9,500 TEU and adding new energy efficiency features. The total investment for these upgrades is estimated to be around $20 million.

“The new charters on four existing container vessels demonstrate the benefit of a customer-focused approach, where we, in close cooperation with Maersk, have analyzed how to optimize the vessels’ operational performance and reduce emissions,” said Ole B. Hjertaker, CEO of SFL Management AS. “This benefits both our customer and us during the charter period, whilst we will have more attractive vessels when the new charters expire in 2030. With the acquisitions and charter extensions announced so far this year, we have added approximately $2 billion to our fixed rate charter backlog.”

Earlier this month, SFL announced plans to build five 16,800 TEU container vessels with LNG dual-fuel propulsion for delivery in 2028 at a cost of approximately $1 billion. The vessel have secured minimum 10-year time charters with a leading liner company, adding about $1.2 billion to SFL’s charter backlog, with options for extension and purchase.

SFL’s diverse fleet includes tanker vessels, bulkers, container vessels, car carriers, and offshore drilling rigs, all on long-term charters.

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