Seaspan Corp is breaking new ground with an order for its largest containerships to date.
The company has inked a contract with a major shipyard for two 24,000-teu boxships to be delivered in the first half of 2023.
The orders are placed on the back of an 18-year charter with an unnamed liner operator.
Seaspan, a subsidiary of New York Stock Exchange-listed Atlas Corp, said the two newbuildings will have conventional fuel systems, but will include emissions reduction technologies.
It said financing will be arranged from additional borrowing as well as cash on hand.
Seaspan’s fleet comprises 127 vessels with a combined total capacity of more than 1m teu and contracted revenue of $4.1bn.
Tally rises to seven ships
The deal comes hot on the heels of orders for five 12,200-teu vessels placed in December.
Those were ordered on the back of an 18-year time charter to Mediterranean Shipping Co (MSC).
The seven newbuildings ordered since the start of December will add 109,000 teu to Seapspan’s fleet over the next two years.
“By combining our key core competencies of creative partnerships, quality growth and disciplined capital allocation, we have developed compelling newbuild opportunities to continue to fuel the company's growth and enhance our competitive advantages,” Bing Chen, chairman, president and chief executive of Seaspan, said.
"With newbuild slots scarce in today's market, we have been consistently meeting our liner customers' needs while maintaining our return discipline and prudent capital allocation.
“Upon their completion, these seven best-in-class newbuild vessels are scheduled to consistently add to our fleet beginning late this year and extending through [to the end of] 2023, supporting our strategies to continue generating quality growth and creating value for our shareholders."
Breaking new ground
Seaspan, which has offices in Canada, Hong Kong and India, is the world's largest independent owner of containerships.
But the move into the 24,000-teu sector breaks new ground for the company.
Seaspan has traditionally focused on midsize containerships.
The largest vessels in its fleet at present comprise a series of 15 ultra-large vessels of 14,000 teu each, ordered on the back of long-term charters to Yang Ming Marine Transport Corp.
Seaspan did not disclose the name of the charterer or shipyard of its latest newbuildings order.
But it claimed that these two new boxships “will bolster Seaspan's core 9,000 to 15,000-teu size category by adding a new ultra-large offering".
