SFL Corporation in an order spree of boxships with long charters

The New-York listed shipowner SFL Corporation will spend $1bln to build five boxships which will come with 10-year charters.

The owner has agreed to build five 16,800 teu container vessels with scheduled delivery in 2028 at an aggregate construction cost of around $1bln.

The vessels will have LNG dual-fuel propulsion and the latest features in fuel efficiency and cargo intake optimization.

Meanwhile, SFL has sealed minimum 10-year time charters to a leading liner company from delivery, adding around $1.2bln to its charter backlog.

The company reveals that there will be an option to extend the charters for another two years, and purchase options at the end of year 10 and 12, including a profit share feature.

Ole B. Hjertaker, chief executive 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.”

The company’s fleet portfolio is comprised of tanker vessels, bulkers, container vessels, car carriers and offshore drilling rigs.