SFL Corporation Ltd. (NYSE: SFL), a prominent maritime asset manager, has announced the acquisition of two new LNG dual-fuel chemical carriers with a combined capacity of 33,000 deadweight tons (dwt). These vessels, built in 2022/2023, will add to SFL’s expanding fleet of eco-friendly ships. The deal, valued at approximately $114 million, includes long-term employment agreements with Stolt Tankers, a subsidiary of Stolt-Nielsen Limited, a leading chemical logistics company.
Strategic Investment in Eco-Friendly Vessels
The acquisition of these dual-fuel vessels demonstrates SFL’s commitment to sustainable maritime practices. The chemical carriers are equipped with stainless steel cargo tanks and are designed to operate on both traditional fuels and Liquefied Natural Gas (LNG), reducing carbon emissions. This investment aligns with SFL’s strategy to maintain a modern fleet while catering to the growing demand for environmentally friendly shipping solutions.
Partnership with Stolt Tankers
Stolt Tankers, a subsidiary of Stolt-Nielsen Limited, is a key player in chemical logistics. The long-term employment agreements for these new vessels reflect a mutually beneficial partnership. One of the vessels will operate under a fixed-rate time charter, with extension options, while the other will be employed in a pool of similar-sized vessels. This collaboration not only secures stable revenue for SFL but also provides Stolt Tankers with modern tonnage, enhancing their operational flexibility.
Favorable Market Dynamics for Chemical Tankers
The acquisition comes at a time when the market dynamics for stainless-steel chemical tankers are favourable. The chemical logistics industry is experiencing steady growth, driven by increasing demand and an ageing fleet with a limited order book. The combination of fixed-rate charters and pool earnings offers SFL a balanced approach to revenue generation while capitalizing on a strong market. This move also strengthens SFL’s position as a leader in maritime asset management, with a focus on long-term charters and partnerships with industry-leading companies.
Overall, SFL’s investment in these dual-fuel chemical carriers not only bolsters its fleet but also reinforces its commitment to sustainability and innovation in the maritime industry. The partnership with Stolt Tankers underscores the value of strategic collaborations in navigating the evolving landscape of chemical logistics.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe
Source: SFL
