Photo by Pankaj Mishra

SFL announces extension of charter deal with Maersk

Investments will also be made to increase the vessels’ capacity.

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SFL Corporation Ltd has announced that it has agreed new 5-year time charters on four 8,700 TEU Maersk container vessels.

In a press release, the company said the deal will add approximately $240 million to the company’s fixed rate charter backlog.

According to SFL, the vessels have been on charter to Maersk since they were new and the current charters were due to expire in 2025. The ships were built in 2014-2015 and boast “a modern, wide-beam design and fuel-efficient electronic engines, writes SFL.

In connection with the new charters, SFL says it will make certain investments in the vessels, including increasing the cargo capacity to 9,500 TEU.

Moreover, the company will also add new energy efficiency features, and the total upgrade investment is estimated to be approximately $20 million in aggregate.

Commenting on the announcement, Ole B. Hjertaker, CEO of SFL Management AS, said:

“The new charters on four existing container vessels demonstrate the benefit of a customer focused approach, where we in close cooperation with Maersk have analysed how to optimise the vessels’ operational performance and reduce emissions. This benefits both our customer and us during the charter period, whilst we will have more attractive vessels when the new charters expire in 2030. With the acquisitions and charter extensions announced so far this year, we have added approximately $2 billion to our fixed rate charter backlog.”

Photo by Pankaj Mishra