Seaspan orders ten 7,000 TEU dual-fuel LNG containerships

Containership owner and operator Seaspan Corporation, part of Atlas Corp. has revealed a new order encompassing ten 7,000 TEU dual-fuel LNG containerships.

Illustration. Image Courtesy: Kees Torn on Flickr under CC BY-SA 2.0 license

Seaspan said today it will enter into agreements with an unnamed shipyard to construct the LNG boxship fleet.

Also on 6 July, Seaspan and Israeli shipping company ZIM Integrated Shipping Services sealed a strategic agreement for the long-term charter of the ten containerships to serve across ZIM’s various global-niche trades.

Upon their deliveries scheduled to begin in Q4 2023 and continue through 2024, the newbuilds will commence their charters.

The LNG containerships are anticipated to be financed from existing liquidity, cash flow from operations, and additional borrowings, according to Seaspan.

“We see these … 7,000 TEUs to be the natural successor to the aging global pool of conventional vessels in the 4,000 to 9,000 TEU range, where relatively little fleet renewal has taken place. We are experiencing strong customer interest for this vessel size,” Bing Chen, Chairman, President and CEO of Seaspan, commented.

“In line with all of our vessel investments, we have de-risked the $1.05 billion capital expenditure associated with the dual-fuel LNG containerships by signing long-term charters with a leading global liner representing approximately $1.8 billion of contracted cash flow,” Graham Talbot, CFO of Seaspan, explained.

Since December 2020, and including this announcement, Seaspan has unveiled 55 newbuild vessel orders and the acquisition of four second-hand vessels, all four of which have since been delivered.

In February 2021, Seaspan and ZIM inked an initial long-term charter agreement for ten 15,000 TEU LNG-fueled boxships.

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We are … pleased to once again partner with Seaspan as we strategically enhance our operating fleet to further facilitate our long-term strategy. With this second long-term chartering agreement, we are securing access to our core fleet, while maintaining operational agility with respect to the total number of vessels we operate,” Eli Glickman, ZIM President & CEO, said.

“Keeping with our commitment to reducing our carbon footprint and preserving our oceans, we are investing in … ‘green’ vessels that use the cleanest technology currently available. We are proud that this transaction will further improve our carbon intensity standing among the global liners.”

“Our growing partnership and the twenty LNG-fueled newbuilds to date signify both ZIM’s and Seaspan’s commitment to carbon reduction and sustainable growth for our industry,” Chen concluded.