- SFL Corporation extended charter agreements with Maersk for 4 container vessels, adding $240 million to their backlog.
- The company will invest $20 million to upgrade the vessels with increased cargo capacity and improved energy efficiency.
- This extension follows a successful year for SFL with $2 billion added to their charter backlog in 2024.
Hamilton, Bermuda – Leading shipping company SFL Corporation Ltd. (SFL) announced the extension of charter contracts for four 8,700 TEU container vessels with longstanding client A.P. Moller-Maersk (Maersk) on July 8, 2024.
The extended agreements guarantee an additional five years of fixed-rate income for SFL, translating to a significant boost of $240 million to their existing charter backlog. These vessels have been part of Maersk’s fleet since their construction in 2014-2015, with charters originally set to expire in 2025.
Modernization Investments Planned
As part of the agreement, SFL will invest approximately $20 million to modernize and upgrade the vessels. These upgrades will focus on:
- Increased Cargo Capacity: Enhancements will bring the cargo capacity of each vessel to 9,500 TEU, allowing for more efficient cargo transportation.
- Improved Energy Efficiency: SFL will incorporate new features to reduce the vessels’ environmental impact.
“The new charters exemplify the benefits of a collaborative approach,” remarked Ole B. Hjertaker, CEO of SFL Management AS. “By working closely with Maersk, we were able to optimize these vessels for better performance and lower emissions. This not only benefits both companies during the charter period but also ensures the vessels remain attractive upon charter expiration in 2030.”
A Banner Year for SFL
This extended charter agreement signifies another successful year for SFL. The company has added a total of $2 billion to their fixed-rate charter backlog through acquisitions and charter extensions completed so far in 2024.
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Source: SFL
