Seaspan signs fixed agreements with COSCO for 17 container vessels

Stade, Germany - January 26, 2021: Fully loaded container ship COSCO SHIPPING SCORPIO on Elbe river heading to Hamburg

Seaspan Corporation has signed fixed agreements with COSCO Shipping Lines (COSCO) for 17 container ships with a combined capacity of 117,700 TEU.

According to a statement, the vessels were previously scheduled to conclude current charters with COSCO for two in 2021, 13 vessels in 2022, and two in 2023, which have now all been extended for a three-year term beginning at the end of their current charter period.

Over the course of the charter terms between 2023 and 2027, these contracts will generate approximately $0.7 billion of gross contracted cash flow.

Bing Chen, Chairman, President and CEO of Seaspan, said, “The forward fixing of these 17 vessels is another milestone of mutual commitment to our long-term partnership throughout the market cycles.

“The immediate result of forward fixing is that we have a very limited number of vessel redeliveries in 2022 and 2023. I would like to thank both teams for their seamless teamwork in creating a win-win solution.

“COSCO will continue to enjoy Seaspan’s excellent operational quality, scale, and flexibility, while, at the same time, allowing Seaspan to forward fix material tonnage based on current market conditions to further strengthen our long-term charter business model.

“The mutually beneficial approach implemented to meet COSCO and other strategic customers’ strong demand has contributed to the stabilization of the market and facilitated our customers’ competitiveness and successes in serving their end customers.”

Additionally, Seaspan said it has signed an agreement a major shipyard for two further 12,000 TEU container ships, which are due to be delivered in Q4 2021.

Upon completion, the vessels will enter long-term charters with a global liner; the charters include purchase options at their conclusion.

Chen commented, “We are very pleased to continue facilitating our customer’s growth by providing the most efficient newbuilds to be delivered in Q4 2022.

“It demonstrates again the creative partnership that our customer can always rely on our experienced team and integrated platform to deliver the solution.”

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