On October 28, SFL Corporation announced on its official website that it has finalized shipbuilding agreements for two 8,800 TEU container ships and one 93,000-cubic-meter dual-fuel Very Large Ammonia Carrier (VLAC). The new vessels are scheduled for delivery in 2027 and 2028, respectively, with the total contract value amounting to approximately $365 million. Details regarding the shipyard have not yet been disclosed.
With the addition of one newly ordered vessel, the company now has a total of three VLACs under construction. On October 5 of this year, SFL Corporation announced an order for two 93,000-cubic-meter-class VLACs. The total value of the order is approximately $216 million, with deliveries scheduled to begin in the second quarter of 2028. Based on the hull numbers, it is inferred that these two new vessels will be built by Hengli Heavy Industries.
The third VLAC, now officially announced, has been secured under a long-term time charter agreement with a leading commodity firm. The charter will span at least five years from the date of delivery, with the charterer holding an option to extend the term by up to an additional two years. Furthermore, during the final two years of the fixed-term period, the charterer has the option to sell the vessel, with any profits from such a sale to be shared with SFL.
The two container ships covered by this agreement have already been secured under a charter contract with a leading liner company. Upon delivery, the vessels will be placed on a time charter for a minimum term of eight years, with an option to extend the lease for up to an additional four years. The charterer holds purchase options exercisable at the end of the eighth, tenth, and twelfth years, and the agreement includes provisions for profit-sharing.
The lease agreement described above will boost SFL Corporation’s fixed-rate charter order backlog by at least $333 million. If the extension option is exercised, this revenue figure could increase further.
A representative from SFL Corporation stated: “The company continues to expand its asset portfolio by combining newbuilds with early deliveries and providing chartering services to high-quality partners. To date, the acquisitions and charter agreements announced this year have added more than $1.6 billion to the company’s fixed-rate charter order backlog.”
The official website states that SFL Corporation currently owns and operates a modern, diversified fleet comprising crude oil tankers, product tankers, dry bulk carriers, container ships, car carriers, and energy-related vessels. This fleet portfolio reflects the company’s diversification strategy in the global shipping industry and the stability of its long-term charter arrangements.