SFL Corporation Ltd. (SFL): Analyse Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique des opérations maritimes mondiales, SFL Corporation Ltd. se dresse au carrefour des défis internationaux complexes, naviguant à travers un labyrinthe de transformations politiques, économiques, technologiques et environnementales. Cette analyse complète du pilon dévoile le paysage complexe qui façonne les décisions stratégiques de la SFL, révélant comment les tensions géopolitiques, les innovations technologiques et les impératifs de durabilité sont fondamentalement remodeler l'avenir de l'industrie maritime. Plongez dans une exploration qui découvre les forces multiformes à l'origine de l'un des secteurs les plus critiques du commerce et des transports mondiaux.

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs politiques

Les réglementations internationales de livraison ont un impact sur les opérations maritimes mondiales

L'Organisation maritime internationale (OMI) a mis en œuvre la réglementation de Sulphur de l'OMI 2020, nécessitant une contenu mondial de soufre de carburant marin de 3,5% à 0,5%. Ce règlement a un impact direct sur les stratégies de conformité opérationnelle de SFL Corporation et d'achat de carburant.

Règlement	Coût de conformité	Année de mise en œuvre
Réglementation de soufre IMO 2020	50 à 60 milliards de dollars Coût de conformité à l'échelle de l'industrie	2020
Convention de gestion des eaux de ballast	30 000 à 5 millions de dollars par navire Retrofit Coût	2017

Les tensions géopolitiques affectant les voies d'expédition et la dynamique commerciale

Les tensions géopolitiques actuelles ont un impact significatif sur les routes commerciales maritimes, en particulier dans des régions comme la mer Rouge et le golfe d'Aden.

• Les attaques houthi en mer Rouge ont augmenté les détours de la route d'expédition de 30%
• Coûts de carburant supplémentaires pour les voies alternatives estimées à 1,5 million de dollars par navire en transit
• Les primes d'assurance pour les zones maritimes à haut risque ont augmenté de 25 à 40%

Règlement sur l'État de drapeau influençant la conformité des navires

Les réglementations maritimes de la Norvège, où SFL Corporation a son siège social, imposent des normes de conformité aux navires stricts.

Aspect réglementaire	Exigence de conformité	Plage de pénalité
Normes de sécurité des navires	Inspections annuelles des navires complets	€10,000-€500,000
Surveillance des émissions	Rapports obligatoires des émissions de CO2	5 000 à 250 000 € par violation

Changements de politique commerciale potentiels impactant les stratégies de l'industrie du transport maritime

Les récents développements de politique commerciale ont créé d'importants défis de l'industrie maritime.

• Les tensions commerciales américaines-chinoises ont réduit le commerce maritime bilatéral de 12,3% en 2023
• Le mécanisme d'ajustement des frontières en carbone de l'Union européenne devrait augmenter les frais de conformité des expéditions de 15 à 25 € la tonne de CO2
• Sanctions potentielles et restrictions commerciales remodeler continuellement la logistique d'expédition mondiale

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs économiques

Tarifs de fret mondial volatil et de charte

SFL Corporation Ltd. a déclaré des revenus de charte de 364,3 millions de dollars pour l'exercice 2023, avec des variations importantes tirées par la volatilité du marché. Les taux de charte quotidiens moyens pour différents types de navires ont démontré des fluctuations substantielles:

Type de navire	Taux de charte quotidien moyen 2023	Changement d'une année à l'autre
Conteneurs	$22,750	-17.3%
Pétroliers	$18,900	+5.6%
Transporteurs de GNL	$95,000	+12.4%

Impact du prix du carburant sur les coûts opérationnels

Les prix des carburants du bunker ont directement influencé les dépenses opérationnelles:

Type de carburant	Prix ​​moyen par tonne métrique (2023)	Impact des coûts opérationnels
Gaz maritime	$732	47,3 millions de dollars supplémentaires
Fourniture de carburant	$465	29,6 millions de dollars supplémentaires

Cycles économiques et demande d'expédition

Les mesures de demande d'expédition mondiales pour 2023:

• Taux d'utilisation totale des navires: 87,6%
• Volume mondial du commerce des conteneurs: 159,4 millions EVP
• Indice du taux de fret: 1 425 points

Variations de taux de change

Les performances financières affectées par les fluctuations des taux de change:

Paire de devises	Variance du taux de change	Impact financier
USD / EUR	±3.7%	Écart de revenus de 22,1 millions de dollars
USD / NOK	±2.9%	Déclai de revenus de 15,6 millions de dollars

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs sociaux

La conscience environnementale croissante entraîne des pratiques d'expédition durables

Selon l'International Maritime Organisation (IMO), l'industrie du transport maritime vise à réduire les émissions de CO2 de 40% d'ici 2030 et 70% d'ici 2050. Les émissions de navigation mondiales représentent actuellement environ 2,89% du total des émissions mondiales de gaz à effet de serre.

Métrique d'expédition durable	2024 données
Conformité aux carburants à faible teneur	98,5% de la flotte mondiale
Navires à carburant alternatifs	347 navires à l'échelle mondiale
Efficacité énergétique moyenne de la flotte	22% d'amélioration depuis 2008

Les changements démographiques dans les modèles commerciaux mondiaux affectent les exigences d'expédition

La région Asie-Pacifique représente 63,4% du volume mondial du commerce maritime en 2024. La demande de livraison des conteneurs devrait augmenter de 3,2% par an jusqu'en 2030.

Itinéraire	Volume annuel (TEU)	Taux de croissance
Asie-Europe	26,7 millions	2.8%
Transpacifique	24,3 millions	3.5%
Transatlantique	7,2 millions	1.9%

Accent croissant sur le bien-être de la mer et les conditions de travail

L'Organisation internationale du Travail rapporte 1,89 million de marins dans le monde en 2024. Le salaire mensuel moyen des marins varie entre 2500 $ et 4 500 $ selon le rang et le type de navire.

Indicateur de bien-être	2024 statistiques
Programmes de soutien à la santé mentale	62% des compagnies maritimes
Temps de travail continu maximum	14 heures par jour
Évaluations psychologiques régulières	48% des organisations maritimes

La demande de compétences technologiques transforme les capacités de la main-d'œuvre maritime

Le marché des technologies maritimes numériques prévoyait de atteindre 5,3 milliards de dollars d'ici 2027. 78% des sociétés maritimes investissent dans des programmes de formation numérique.

Compétence technologique	Taux d'adoption de la main-d'œuvre
Intelligence artificielle	42%
Technologies de navires autonomes	29%
Cybersécurité	67%

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs technologiques

Les systèmes avancés de suivi et de surveillance des navires améliorent l'efficacité opérationnelle

SFL Corporation Ltd. utilise les technologies de suivi des navires de pointe avec les spécifications suivantes:

Technologie	Métriques de performance	Amélioration de l'efficacité
Systèmes de suivi GPS	Précision de localisation en temps réel à moins de 3 mètres	Augmentation de l'efficacité opérationnelle de 17,5%
Communication par satellite	Couverture mondiale à 99,8%	22% d'amélioration de la fiabilité de la communication
Réseaux de capteurs IoT	Plus de 500 points de données par navire	15,3% de réduction de maintenance prédictive

La transformation numérique de la logistique maritime améliore les réseaux de communication

Investissement d'infrastructure numérique: 42,6 millions de dollars en 2023

• Implémentation du réseau 5G sur la flotte
• Plateformes de gestion logistique basées sur le cloud
• Suivi de la chaîne d'approvisionnement compatible la blockchain

Les technologies d'expédition autonomes émergent comme une innovation future potentielle

Technologie autonome	Étape de développement actuelle	Année de mise en œuvre prévue
Navires télécommandés	Test de prototype	2027
Systèmes de navigation AI	Développement algorithmique avancé	2029

L'investissement dans les technologies de navires respectueuses de l'environnement devient critique

Investissement technologique vert: 87,3 millions de dollars en 2024

Éco-technologie	Potentiel de réduction du carbone	Coût de la mise en œuvre
Navires alimentés par le GNL	25% de réduction des émissions de CO2	24,5 millions de dollars
Systèmes de pile à combustible à hydrogène	40% de réduction des émissions	36,8 millions de dollars
Propulsion assistée par solaire	12% d'efficacité énergétique	15,2 millions de dollars

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs juridiques

Compliance des réglementations maritimes internationales complexes

Exigences de conformité des conventions de l'OMI:

Règlement	Coût de conformité (annuel)	Pénalité pour non-conformité
Marpol 73/78	1,2 million de dollars	Jusqu'à 50 000 $ par violation
Convention Solas	$850,000	Jusqu'à 75 000 $ par non-conformité
Convention de travail maritime	$650,000	Jusqu'à 25 000 $ par violation de la mer

Lois sur la protection de l'environnement

Métriques de la conformité du règlement des émissions:

Règlement	Cible de réduction des émissions	Investissement requis
IMO SULFUR CAP 2020	0,50% de soufre	3,5 millions de dollars par navire
Gestion de l'eau de ballast	Conformité au traitement à 100%	2,1 millions de dollars par navire

Responsabilité de l'accident maritime

Couverture d'assurance responsabilité civile:

• Coque & Assurance de machines: 250 millions de dollars
• Protection & Couverture d'indemnisation: 500 millions de dollars
• Responsabilité des dommages environnementaux: 100 millions de dollars par incident

Règlement sur le travail international

Conformité des normes d'emploi des marins:

Réglementation du travail	Coût de conformité	Impact de la main-d'œuvre
Règlement sur les heures de travail	1,5 million de dollars par an	Maximum 14 heures Travail / Jour
Normes de salaire minimum	3,2 millions de dollars par an	2 500 $ salaire mensuel minimum
Santé & Protocoles de sécurité	2,7 millions de dollars par an	Assurance médicale obligatoire

SFL Corporation Ltd. (SFL) - Analyse du pilon: facteurs environnementaux

Accent croissant sur la réduction des émissions de carbone dans le transport maritime

Selon l'International Maritime Organisation (OMI), la navigation maritime représente environ 2,89% des émissions mondiales de gaz à effet de serre. L'OMI vise à réduire les émissions de carbone de 40% d'ici 2030 et 70% d'ici 2050 par rapport aux niveaux de 2008.

Type d'émission	Émissions annuelles actuelles	Cible de réduction
Émissions de CO2 de l'expédition	1,06 milliard de tonnes métriques	Réduction de 40% d'ici 2030
Émissions de gaz à effet de serre	1,3 milliard de tonnes métriques	Réduction de 70% d'ici 2050

Règlements environnementaux stricts Mandat des technologies d'expédition plus nettoyantes

La Convention internationale pour la prévention de la pollution des navires (Marpol) Annexe VI fixe des limites strictes sur les émissions d'oxyde de soufre et d'oxyde d'azote. En janvier 2020, le capuchon mondial du soufre est passé de 3,5% à 0,5%.

Règlement	Limite d'émission	Date de mise en œuvre
Émissions d'oxyde de soufre	0,5% maximum	1er janvier 2020
Émissions d'oxyde d'azote	Normes de niveau III	1er janvier 2016

Le changement climatique a un impact

La réduction de la glace de mer de l'Arctique a ouvert de nouvelles voies d'expédition, la route de la mer du Nord montrant une augmentation de 70% du volume des transports en commun entre 2010 et 2019.

Voie d'expédition	Augmentation du volume de transit	Période
Route de la mer du Nord	70%	2010-2019

Investissement croissant dans les conceptions de navires durables et éconergétiques

Les investissements mondiaux dans les technologies maritimes vertes ont atteint 5,3 milliards de dollars en 2022, avec un taux de croissance annuel prévu de 9,2% à 2030.

Catégorie d'investissement	Investissement actuel	Taux de croissance projeté
Technologies maritimes verts	5,3 milliards de dollars	9,2% par an
Navires à carburant alternatifs	2,1 milliards de dollars	12,5% par an

SFL Corporation Ltd. (SFL) - PESTLE Analysis: Social factors

Sociological

The social factors impacting SFL Corporation Ltd. (SFL) center on the stability and well-being of the global maritime workforce, which defintely influences operational costs and safety. This is a people-driven business, so a healthy crew pipeline and a strong safety culture are non-negotiable for long-term charter stability.

You need to look at the global labor pool first. The industry faces a critical labor crunch, particularly at the officer level. The International Chamber of Shipping (ICS) projects a global seafarer shortage of nearly 90,000 trained officers by 2026. This shortage is exacerbated by the rapid growth of the global fleet outpacing the recruitment of skilled professionals. Here's the quick math: fewer experienced officers mean higher wage pressure and increased operational risk for all shipowners, including SFL, which relies on third-party managers to crew its diverse fleet.

Crew Welfare and Retention Challenges

Crew welfare issues are a massive retention risk, and they are becoming a core business liability. The long voyages and isolation are taking a heavy toll. A 2025 study by Cardiff University's Seafarers International Research Centre found that over 33% of cargo ship seafarers report inadequate sleep, a direct precursor to fatigue. Fatigue remains the single largest threat to safety at sea. Still, the industry is making small gains: the Seafarers Happiness Index for Q1 2025 showed a slight increase to 6.98/10, up from 6.91 in Q4 2024, but this score still signals significant strain on wellness.

For SFL, managing this risk is paramount, as their business model is built on long-term charters to blue-chip counterparties who demand impeccable safety records. SFL emphasizes a rigorous health and safety focus in its Code of Conduct and ESG reporting, aiming for a zero-accident culture. Their key performance target for the Lost Time Incident Rate (LTIR)-a measure of accidents resulting in lost work days-is 0. This ambitious target forces their outsourced ship managers to maintain industry-leading standards.

Social/Welfare Metric	Latest 2025 Data/Target	Implication for SFL
Global Seafarer Officer Shortfall	Projected 90,000 by 2026	Increased crewing costs and difficulty in securing high-quality, experienced officers for managed vessels.
Seafarer Fatigue (Inadequate Sleep)	Over 33% of cargo crew (2025 study)	Higher risk of human error, leading to potential marine casualties and breaches of charter agreements.
Lost Time Incident Rate (LTIR) Target	0 (SFL's stated ambition)	Requires stringent oversight of third-party ship managers and continuous investment in safety training and vessel maintenance.
ESG Compliance Screening	100% of business partners screened annually (SFL target)	Mitigates risk of worker exploitation and modern slavery in the supply chain, a growing social concern.

Security Risks and Operational Safety

The geopolitical landscape has dramatically increased security risks, directly affecting crew safety and, consequently, insurance and routing costs. The Red Sea region, for example, remains a high-risk area due to Houthi attacks, forcing many vessels to reroute. The ongoing conflict between Russia and Ukraine has also reduced the supply of seafarers from those nations, who previously made up nearly 15% of the global maritime workforce, further intensifying the labor shortage.

SFL's vessels, which operate globally across various segments (tankers, bulkers, container vessels), are exposed to these conflict zones. The need for better onboard security measures and training is critical. While SFL outsources operations, they mandate a robust risk management framework, including a policy on facilitation payments-small payments to public officials-which are prohibited unless an employee has a reasonable belief that their personal safety is at risk. That small exception shows a realistic, empathetic approach to crew security in volatile ports, but it also signals the real dangers crews face.

• Monitor high-risk areas like the Red Sea for crew safety and rerouting decisions.
• Ensure all outsourced crew receive up-to-date security training for piracy and conflict zones.
• Address the financial impact of higher war-risk insurance premiums in 2025.

SFL Corporation Ltd. (SFL) - PESTLE Analysis: Technological factors

You can see SFL Corporation Ltd. is actively using technology to drive a clear, two-pronged strategy: divest older, less-efficient assets and aggressively modernize the core fleet. This isn't just about compliance; it's a direct move to secure premium, long-term charters with high-quality counterparties by offering a superior, lower-carbon-footprint service.

The company is making tangible capital commitments, which is the only way to stay competitive in a decarbonizing maritime industry. Here's the quick math: SFL has a fixed-rate charter backlog of approximately $4 billion, and a significant part of that stability comes from deploying these technologically upgraded and new-build vessels.

Fleet renewal is active, with over $200 million in older, less efficient dry bulk and container vessels sold in Q2 2025.

SFL is systematically shedding older, less fuel-efficient tonnage to free up capital for modernization. In the second quarter of 2025 and shortly thereafter, the company completed the sale and re-delivery of older dry bulk and container vessels for an aggregate amount of more than $200 million. This capital is immediately available for new, high-specification assets.

For example, during Q2 2025, SFL received net proceeds of approximately $20 million from the sale of one Supramax vessel and seven container vessels. Post-quarter, the sale and re-delivery of 11 bulkers and one container vessel brought in approximately $154 million. This is a defintely a clear-cut capital recycling strategy.

Investments are focused on cargo-handling and fuel-efficiency upgrades for the existing fleet.

The company is not just buying new ships; it's maximizing the efficiency of its current fleet through substantial retrofitting. SFL has invested nearly $100 million in fuel efficiency and cargo optimization upgrades across its fleet through Q3 2025.

This investment is already paying off: these initiatives have contributed to adding approximately $1.2 billion to the fixed rate charter backlog, showing customers value the improved operational and environmental performance. During the first half of 2025 alone (six months ended June 30, 2025), SFL recognized capital upgrades of $38.0 million on 13 container vessels, one car carrier, and two Suezmax tankers.

Digitalization and AI are becoming crucial for accurate emission data monitoring and compliance reporting.

To meet increasingly strict regulations, like the EU Emissions Trading System (EU ETS), SFL relies on a fully digitalized ship performance system. The company uses its digital monitoring platform, Veracity, for live tracking of each vessel's emissions and energy consumption.

This platform is the backbone for managing and reporting against Environmental, Social, and Governance (ESG) Key Performance Indicators (KPIs) and regulatory metrics like the IMO Carbon Intensity Indicator (CII). The data for main KPIs, such as Annual Efficiency Ratio (AER) and Energy Efficiency Operational Indicator (EEOI), is cloud-based and provided instantly, with third-party verification handled by DNV. This level of data precision is essential for maintaining charterer trust and avoiding compliance penalties.

The company prioritizes modern tonnage acquisitions for high efficiency and a lower carbon footprint.

SFL's long-term fleet strategy centers on acquiring modern, high-efficiency tonnage that meets future environmental standards. The company has a significant capital expenditure commitment of approximately $850 million remaining for five new-build 16,800 TEU container vessels, with deliveries scheduled through 2028.

A key technological differentiator is the move toward alternative fuels. SFL now has 11 vessels capable of operating on LNG fuel, including five newbuildings currently under construction. This focus on Liquefied Natural Gas (LNG) capability positions the fleet to meet the demand for low-emitting tonnage driven by the FuelEU Maritime regulation, which will phase in requirements on well-to-wake GHG emissions starting in 2025.

Technological Investment Area	FY 2025 Financial/Operational Data	Strategic Impact
Fleet Divestment (Capital Recycling)	Over $200 million aggregate proceeds from sale of older dry bulk/container vessels (Q2 2025 & subsequent).	Removes high-emission, high-cost assets; provides immediate capital for new investments.
Existing Fleet Upgrades (Retrofits)	Nearly $100 million invested in fuel efficiency and cargo optimization upgrades (through Q3 2025).	Adds $1.2 billion to fixed rate charter backlog; materially improves operational efficiency.
New Tonnage Acquisitions (Future Fleet)	Remaining capital expenditure of approximately $850 million for five 16,800 TEU container newbuilds.	Secures future revenue stream; ensures compliance with long-term decarbonization goals.
Alternative Fuel Capability	11 vessels now capable of operating on LNG fuel, including five newbuildings.	Positions SFL to meet demand for low-emitting tonnage under FuelEU Maritime regulations.

The shift to modern, efficient vessels is a necessity, not an option.

• Sell: Divest older, less-efficient dry bulk and container tonnage.
• Upgrade: Invest $38.0 million in H1 2025 for vessel capital upgrades.
• Monitor: Use the Veracity platform for live emissions tracking.
• Build: Commit $850 million for five high-capacity, modern newbuilds.

SFL Corporation Ltd. (SFL) - PESTLE Analysis: Legal factors

You're looking at SFL Corporation Ltd. (SFL) and seeing a complex web of new EU environmental laws, but here's the quick math: the company's long-term charter model acts as a legal firewall, pushing the vast majority of new regulatory costs directly onto the charterers. This structure transforms a major compliance risk into a managed operational overhead.

The expanded scope of the EU Emissions Trading System (EU ETS) creates new compliance and financial liabilities.

The EU Emissions Trading System (EU ETS) for shipping is the single largest legal and financial factor for SFL in 2025. The company, as the vessel owner holding the Document of Compliance (DoC), bears the initial legal liability for surrendering European Union Allowances (EUAs). For the 2025 reporting year, the required surrender percentage jumps to cover 70% of verified greenhouse gas (GHG) emissions, a significant increase from the 40% required for 2024 emissions.

The financial exposure is substantial. SFL's own risk assessment estimated their 2024 annual exposure at between USD 9 million and USD 11 million worth of EUAs. Given the 2025 phase-in rate is 75% higher (70% vs. 40%), the gross exposure for 2025 is likely to be in the range of USD 15.75 million to USD 19.25 million, assuming a stable EUA price. The penalty for non-compliance is severe: €100 per excess ton of CO₂ emitted, plus the public naming of non-compliant companies.

EU ETS Compliance Metric	2024 Requirement	2025 Requirement	2026 Requirement
Emissions Coverage Percentage	40% of verified emissions	70% of verified emissions	100% of verified emissions
Estimated SFL Gross EUA Exposure (Based on SFL's 2024 guidance)	USD 9M to USD 11M	USD 15.75M to USD 19.25M (Estimated)	Significantly Higher
Non-Compliance Penalty	€100 per excess ton of CO₂	€100 per excess ton of CO₂	€100 per excess ton of CO₂

The FuelEU Maritime Regulation, implemented January 1, 2025, requires vessels to have an approved Monitoring Plan.

The FuelEU Maritime Regulation (Regulation (EU) 2023/1805) became fully applicable on January 1, 2025, and it shifts the legal focus from carbon pricing to fuel quality and greenhouse gas (GHG) intensity. The regulation mandates a 2% reduction in the yearly average GHG intensity of energy used on board in 2025, compared to the 2020 baseline.

For SFL, the immediate legal requirement was having an approved Monitoring Plan (MP) on board each in-scope vessel by the start of the year. The greater financial risk comes from the penalty for using non-compliant fuel: a staggering €2,400 per metric ton of fuel that fails to meet the required GHG intensity standard. This regulation is a legal driver for SFL's strategy of divesting older, less efficient vessels and investing in fuel-efficiency upgrades for its modern fleet.

Legal risk from international sanctions and trade protectionism directly impacts vessel employment and charter party clauses.

While SFL's business model relies heavily on long-term charters with strong counterparties, geopolitical instability translates directly into legal risk, especially for its tanker fleet. International sanctions, particularly those against Russia's oil trade, have intensified in 2025, with the US Treasury sanctioning 183 vessels, largely oil tankers, in January 2025 alone.

This creates a legal minefield for vessel employment, forcing SFL to defintely ensure its charter parties contain robust clauses that clearly define the permitted trading areas, exclude sanctioned ports, and indemnify the owner against losses from charterer-induced sanctions breaches. The risk here is not just lost revenue, but the potential for a vessel to be blacklisted or detained, leading to a total loss of employment capacity for the duration of the sanction.

SFL's long-term charters are structured to pass on new regulatory costs, like carbon allowances, to charterers.

This is the critical legal safeguard for SFL's financial model. The EU ETS Directive itself includes a legal mandate (Article 3gc) requiring the charterer to reimburse the shipowner for the cost of EU Allowances (EUAs) under a time charter.

SFL's long-term charter agreements, which support its stable charter hire revenue-reported as $194 million in Q2 2025-are designed to incorporate this cost pass-through. The industry standard, like the BIMCO 'ETS Clause 2024,' is widely adopted to ensure the 'polluter pays' principle is enforced contractually. This means that while SFL must monitor emissions and purchase the EUAs, the financial burden is recovered from the charterer, effectively mitigating the multi-million dollar regulatory exposure.

• Compliance Responsibility: SFL (Owner) is the legal entity responsible for surrender.
• Financial Responsibility: Charterer is contractually and legally required (via Article 3gc) to reimburse SFL.
• Mitigated Cost: SFL's estimated gross EUA exposure of up to USD 19.25 million in 2025 is largely offset by this reimbursement mechanism.

SFL Corporation Ltd. (SFL) - PESTLE Analysis: Environmental factors

You're navigating a shipping market where environmental compliance is no longer a cost center; it's a competitive advantage. The regulatory landscape, especially in 2025, is forcing a capital-intensive shift toward fleet modernization and cleaner operations, and SFL Corporation's strategy of divesting older assets and investing heavily in efficiency is a direct, necessary response to this pressure.

IMO's Carbon Intensity Indicator (CII) and the EU ETS put a price on carbon for vessels trading in European waters.

The biggest near-term financial risk for SFL's fleet is the dual regulatory punch from the International Maritime Organization's (IMO) Carbon Intensity Indicator (CII) and the European Union's Emissions Trading System (EU ETS). The CII, which applies to all ships over 5,000 gross tonnage, requires a continuous improvement in operational carbon intensity of approximately 2% annually up to 2026. If your vessel gets a low 'D' or 'E' rating, it faces commercial disadvantages and potential corrective action plans.

But the real financial bite comes from the EU ETS, which expanded its scope in 2025 to cover 50% of emissions from voyages into and out of Europe, with full scope coming in 2026. This system puts a direct price on carbon, requiring shipowners to surrender EU Allowances (EUAs) for their emissions. As of late 2025, EUA allowances have been trading in the range of €60-90/tonne of CO2. For SFL, this means a tangible, escalating cost for any vessel that is not fuel-efficient and trades in European waters. You must model this cost into all charter party agreements now.

Here's the quick math on the compliance timeline for 2024 emissions:

• Report and verify 2024 emissions data by March 31, 2025.
• Submit the required number of EUAs to cover 2024 emissions by September 30, 2025.

The IMO is scheduled to vote on a Net-Zero Framework, including a potential global carbon tax, in October 2025.

The global regulatory picture remains fragmented, which is a headache for long-term capital planning. The International Maritime Organization's (IMO) scheduled vote on the proposed Net-Zero Framework, which included a global carbon tax/levy, was postponed for one year on October 17, 2025. The vote was delayed until October 2026 due to procedural pushback, notably from the U.S., Saudi Arabia, and China. This delay creates regulatory uncertainty, but it defintely doesn't stop the decarbonization trend.

The proposed framework is a huge deal because it would apply to large ocean-going ships over 5,000 gross tonnage, which represent about 85% of international shipping's total CO2 emissions. The delay means SFL has an extra year before facing a potential global carbon pricing mechanism, but the long-term goal of net-zero emissions by or around 2050 remains. This pause gives SFL a window to accelerate its fleet efficiency upgrades without the immediate pressure of a global tax.

SFL's strategy involves divesting older, less efficient vessels to improve overall fleet operational and fuel consumption efficiency.

SFL's management has been proactive in tackling these environmental pressures through a clear fleet optimization strategy, which is the right move. The company is actively moving out of older, less efficient tonnage to improve its overall fleet operational and fuel consumption efficiency materially. This is how you keep your charterers happy and your CII ratings strong.

In Q2 2025 alone, SFL sold and redelivered 21 vessels, including 12 dry bulk carriers and 8 container ships, which were mostly late in life. This divestment frees up capital for new, cleaner investments. Plus, SFL has already invested nearly $100 million in fuel efficiency and cargo optimization upgrades across its existing fleet since 2023. This investment has directly contributed to adding approximately $1.2 billion to the fixed-rate charter backlog, showing that customers are willing to pay a premium for efficient, compliant ships.

The company's future fleet composition is already mapped out with significant capital expenditure:

Asset Class	Newbuilds on Order (Q3 2025)	Remaining Capital Expenditure	Scheduled Delivery
Container Vessels	Five 16,800 TEU vessels	Approximately $850 million	2028

New MARPOL Special Area designations (Red Sea, Gulf of Aden) impose stricter controls on discharge of oil and garbage.

Another critical operational change in 2025 is the activation of new MARPOL Special Area designations for the Red Sea and Gulf of Aden, effective January 1, 2025. These are major trade routes for SFL's tanker and container fleets, so the stricter discharge controls under MARPOL Annex I (oil pollution) and Annex V (garbage pollution) are immediately relevant.

The new rules demand a higher standard of environmental protection for any vessel traversing these sensitive ecosystems:

• Oil Discharge (Annex I): Prohibits the discharge of oily mixtures from ships of 400 gross tonnage and above unless the oil content is below 15 parts per million (ppm) and processed through approved filtering equipment.
• Garbage Discharge (Annex V): In the Red Sea Special Area, food wastes must be comminuted or ground and discharged no less than 12 nautical miles from the nearest land; all other garbage discharge is severely restricted or prohibited.

This means SFL must ensure its vessels trading on these routes have certified, well-maintained oil filtering equipment and strict garbage management plans. Non-compliance is not an option; it risks detentions and heavy financial penalties, which could disrupt the approximately $4 billion fixed-rate charter backlog.