GSL Charters to Boost CMA CGM Fleet


Poseidon Containers, which entered a definitive merger agreement with Global Ship Lease in October 2018, has agreed five-year charters with CMA CGM for four of its 6,927 TEU containerships.

According to a press release, the charters will deliver incremental annualized EBITDA of approximately USD $11 million, compared to Q3 2018 contracted rates.

The charter for “Mary”, one of the four vessels, has already commenced, while the other remaining charters will begin upon the expiry of existing agreements during the first half of 2019.

The new five-year charters are predicted to generate total EBITDA of approximately $135 million over the five-year contract period.

Dirk Visser discusses transhipment and feedering in a recent Port Technology technical paper

Ian Webber, CEO of Global Ship Lease, said: “As we near the closing of our strategic combination, we are pleased to announce Poseidon Containers’ signing of these long-term charters with leading container liner company CMA CGM at levels substantially above their prior contracted rates.

“Upon closing our transformational combination with Poseidon Containers, the enhanced long-term visibility through 2024 from contracted revenue and cashflow from these charters will strengthen GSL’s balance sheet and contribute to further deleveraging, which, together with increased EBITDA, will drive improvements in financial leverage.”

The combined company, of Global Ship Lease and Poseidon Containers, has a fleet of 38 vessels with a total capacity of 198,793 TEU.

Following the merger, George Youroukos, CEO of Poseidon Containers, commented: “By combining the strengths of these two highly complementary organizations, Global Ship Lease will be in a position to achieve significant additional growth and to benefit substantially in a recovering market.

“The clear disconnect between supportive long-term supply/demand fundamentals and cyclically low asset prices represents a highly compelling opportunity to invest in mid-sized and smaller containerships.”

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