SFL orders five LNG dual-fuel container vessels

News

SFL will build five 16,800 TEU LNG dual-fuel container vessels for US$1 billion, with 10-year charters, scheduled for delivery in 2028.

Bermuda-based shipowner and charterer SFL has announced that it has agreed to build five 16,800 TEU LNG dual-fuel container vessels with scheduled delivery in 2028 at an aggregate construction cost of approximately US$1 billion.

Furthermore, SFL has agreed minimum of 10-year time charters to a “leading liner company” from delivery, adding approximately US$1.2 billion to the company’s charter backlog. There will be an option to extend the charters for another two years, and purchase options at the end of years 10 and 12, including a profit share feature.

New York-listed SFL operates a fleet of 77 vessels, both wholly and partially owned, along with new ships under construction. The container fleet includes 34 ships, the majority of which are on long-term charters to major liners such as MSC, Maersk, and Hapag-Lloyd.

WorldCargo News approached Maersk asking for comment on the chartering deals for the newbuilds, but the company declined. “We don’t comment on market rumours and speculations, nor releases from other companies,” Maersk’s spokesperson said.

Ole B. Hjertaker, CEO of SFL Management AS, said: “This marks another accretive milestone investment for SFL and will add five large container vessels to our fleet. With these vessels delivered, we will have 11 LNG dual-fuel vessels, and it demonstrates our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through 10-year firm charters to an investment-grade counterparty. With the acquisitions and charter extensions announced so far this year, we have added approximately $1.75 billion to our fixed rate charter backlog.”

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