Global Ship Lease (GSL) is expanding its reefer fleet in a containership market that is reaching highs not seen in years.

New York-listed GSL has bought four 5,470-teu panamax reefer boxships with an average age of about 11 years for $148m.

The Baltic Exchange's Freightos Container Index has almost quadrupled over the past year to 6,183 points on Wednesday.

GSL said the vessels will begin three-year fixtures to "a leading liner operator" upon delivery in the third quarter.

The charterers have the option to extend the fixtures for another three years.

GSL did not disclose the names of the vessels or where they were built or when.

The vessels, which will bring GSL's fleet count to 66 ships, are expected to make about $124m in adjusted Ebitda during the firm three-year charter.

If the options are exercised, the ships are expected to generate about $42.2m of additional adjusted Ebitda over the three years.

London-headquartered GSL expects to pay for the acquisitions with cash on hand and senior secured debt.

Good for earnings

The newly acquired ships are expected to increase adjusted Ebitda by $42.5m, or 25%, in the first 12 months and add earnings per share (EPS) by $0.88, or 56%, in the first year.

“These ships are excellent examples of our strategic focus on ultra-high refrigerated container capacity," executive chairman George Youroukos said.

Each ship can carry 1,200 refrigerated containers and can supply electricity to more than 2,000 refrigerated boxes.

He said the four ships, when added to its four 6,927-teu reefer boxships, will give GSL control over a quarter of the global high-reefer fleet that can handle up to 7,000-teu and carry at least 1,200 boxes.

The four-ship acquisition and recent purchase of 12 feeder and handysize vessels are expected to improve year-over-year adjusted Ebitda by $103m, or 61%, and EPS by $1.97, or 126%, in the first year after delivery.

"Looking ahead, we see strong indications that the fundamental supply and demand drivers for this fantastic market are sustainable through the medium term," Youroukos said.

"We continue to believe that GSL is well-positioned to execute our disciplined accretive growth strategy of expanding our long-term earnings while strictly limiting our downside risk and creating further value for our shareholders.”