SFL Corporation has announced a significant investment in its fleet, ordering two Very Large Ammonia Carriers (VLACs) with a capacity of 93,000 cubic meters each. The total cost for these newbuilds is approximately $216 million. These vessels come with pre-arranged long-term time charters from an undisclosed major oil company, ensuring immediate deployment upon delivery.
This move by SFL Corporation highlights the growing demand for specialized vessels capable of transporting alternative fuels like ammonia, which is increasingly viewed as a key component in the decarbonization efforts of the shipping industry. The long-term charters indicate confidence in the future market for ammonia transportation.
For freight forwarders and shippers, this development signals an expansion of capacity for ammonia and potentially other gas cargoes. While direct impact on general container or dry bulk rates is minimal, it underscores the industry's shift towards greener fuels and the associated logistics infrastructure. Forwarders involved in project cargo or specialized chemical logistics may find new opportunities or increased stability in transport options for ammonia.
The vessels are scheduled for delivery starting from the second half of 2027, which will gradually add new capacity to the market for very large ammonia carriers.
