Seaspan Corp has strengthened its relationship with China State Shipbuilding Corp (CSSC) by pencilling in a $1.52bn containership newbuilding order.
If confirmed, the order would take Seaspan’s total orderbook to 69 boxships worth $6.36bn, with up to 32 vessels worth $2.9bn contracted at CSSC.
The tonnage supplier is said to be contracting three shipyards under the state-owned group’s umbrella to construct 20 neo-panamax boxships.
Shipbuilding sources said Seaspan has signed a letter of intent with Dalian Shipbuilding Industry Co (DSIC) for seven 7,000-teu newbuildings for delivery in 2023.
Shanghai Waigaoqiao Shipbuilding and CSSC Guangzhou Huangpu Wenchong Shipbuilding are being tipped to construct the remaining 13 vessels.
Second big contract
Shipbuilding players said that although DSIC has agreed the contract with Seaspan, it is its subsidiaries — Shanhaiguan Shipbuilding and Tianjin Xingang Heavy Industry — that will construct the ships.
They said Seaspan has agreed to pay around $76m apiece for the boxships, which will be equipped with about 800 reefer plugs and will be NOx Tier-III compliant. They are conventionally fuelled but will be methanol-ready.
A spokesman said Seaspan does not comment on market speculation and would comment only on publicly disclosed developments.
The order would be the second major contract for Seaspan at the group.
Three months ago, it signed orders with CSSC Hudong-Zhonghua Shipbuilding and Jiangnan Shipyard to build up to a dozen 15,500-teu ships worth $1.38bn.
Each yard was contracted for three firm scrubber-fitted vessels with options for an additional three ships at about $115m each. Delivery is scheduled for the second half of 2023 and into 2024.
Seaspan said the 15,500-teu containerships will begin long-term charters with leading global liner operators on delivery.
Sale and purchase
It did not disclose the identity of the charterers or details of the contracts.
The company has been active in ordering newbuildings since late last year. According to VesselsValue, before this latest order, Seaspan’s orderbook consisted of 35 neo-panamax containerships of between 12,000 teu and 15,500 teu, and two 24,000-teu ultra-large containerships.
The total value of these 37 newbuildings is $4.84bn. The company is said to have secured employment contracts for most of the ships with Geneva-based Mediterranean Shipping Co.
Transitionary
Besides leaning on the shipbuilding market to expand its fleet, Seaspan has acquired additional tonnage with secondhand vessels.
In April, it bought the Hyundai-built, 8,586-teu neo-panamax boxships Mediterranean Bridge and Gulf Bridge (both built 2011) from China’s Bank of Communications for a total of $105m.
It took delivery of the scrubber-fitted vessels last month. London broker Clarksons’ Shipping Intelligence Network lists the duo as fixed out to Israeli liner operator Zim for six years.
A subsidiary of New York-listed Atlas Corp, Seaspan is the world’s largest tonnage provider, with a fleet aggregating more than 1m teu, according to Alphaliner.
The company supports the Poseidon Principles and embraces alternative fuels. Ten of its neo-panamax newbuildings can be powered by fossil fuels or LNG.
“Presently, LNG is the viable commercial fuel alternative, which may be transitionary as we move forward in partnership with our customers on the decarbonisation journey,” Seaspan said this week of its wider fuel strategy.
