SFL Orders Two Dual-Fuel Car Carriers. Long-term Charters Secured

SFL Corporation said Wednesday it had entered into long-term charters with "a leading Asia-based transportation company" for two ultra-modern dual-fuel car carriers, designed to use liquified natural gas (LNG).

The vessels are sister vessels of the two 7,000 CEU Pure Car and Truck Carriers under construction, chartered to the Volkswagen Group, and scheduled delivery from the shipyard is in Q1-Q2 of 2024.

The aggregate construction cost will be approximately $155 million, and the charter period will be ten years from the delivery of the vessels, adding more than $200 million to SFL's contracted charter backlog.

Ole B. Hjertaker, CEO of SFL Management AS, said: "This transaction shows our commitment to continue expanding our investment focus to assets with a lower carbon footprint whilst ensuring significant visibility through ten-year firm charters to a very strong counterparty."

"Over the last few months, we have added multiple new vessels to our portfolio, increasing our charter backlog by more than $700 million. Many of these acquisitions will deliver during the third quarter, adding immediate cash flow and building our long-term distribution capacity.”

SFL did not say who the charterer for the newbuild duo was.