John Fredriksen’s SFL Corporation has agreed new five-year time charters for four 8,700 teu container vessels.
The company said in a statement that the new contracts would add approximately $240m to the company’s fixed-rate charter backlog.
According to the New York-listed diversified shipowner, the vessels have been on charter to Danish giant Maersk since they were delivered and the current charters were due to expire in 2025. The vessels were built in 2014-2015 with a modern, wide-beam design, and fuel-efficient electronic engines.
In connection with the new charters, SFL will make certain investments in the vessels, including increasing the cargo capacity to 9,500 teu. The company will also add new energy efficiency features, and the total upgrade investment is estimated to be approximately $20m in aggregate.
Although SFL did not specify which vessels won the new deals, the only containerships owned by the company and chartered by Maersk which match the described specifications are the San Francisca, the San Fernando, the San Felix, and the San Felipe.
The fleet list data claims that San Felipe will end its deal the earliest – in the fourth quarter of 2029 – while San Felix and San Fernando will end the charter in the first quarter of 2030. The San Francisca will end its contract last, in the second quarter of 2030.
“[In] close cooperation with Maersk [we] have analysed how to optimize 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,” said Ole B. Hjertaker, CEO of SFL Management.
SFL added that, with the acquisitions and charter extensions announced so far this year, it added around $2bn to its fixed-rate charter backlog.
Last week, SFL ordered five containership newbuilds with an order worth around $1bn. The company’s order consists of five LNG dual-fuel 16,800 teu vessels which will be built at China’s New Times Shipbuilding with deliveries expected in 2028. Once delivered, the vessels will go on a 10-year charter with an undisclosed liner with a two-year extension and purchase options included.
