Seaspan Eyes Larger, Fuel-Efficient Ships

Seaspan has been focusing on fuel-saving ships

Seaspan Corp. [NYSE:SSW] (Seaspan) says it is looking at ordering more and larger fuel-saving containerships after reaching charter deals for four other newbuildings.

The company said it has entered into five-year, fixed-rate time charters with further options for two more years with a "leading container liner company" for four 10,000 twenty-foot equivalent union (TEU) containerships using its SAVER design.

The ships will be constructed at Jiangsu New Yangzi Shipbuilding Co., Ltd. and Jiangsu Yangzi Xinfu Shipbuilding Co. Ltd. (collectively "YZJ").

By finalising the time charter deals, Seaspan has boosted its committed future revenues by more than $130 million.

Seaspan has also converted its remaining options for four 10,000 TEU SAVER-design vessels with YZJ into options for up to six 10,000 to 14,000 TEU SAVER vessels.

Those ships, with delivery dates in 2017 and 2018, would bring Seaspan to 27 newbuilding constructed by the shipbuilder since the start of 2011.

"All of Seaspan's newbuildings have now been signed to attractive fixed rate time charters with leading liner operators, consistent with our focus on generating strong and stable cash flow for Seaspan's shareholders," said Gerry Wang, Seaspan's CEO, co-chairman and co-founder.

"Complementing this success, we are pleased to continue to take steps to position Seaspan to capitalize on the strong demand for Seaspan's SAVER design and the need for large, fuel efficient containerships."

Seaspan has been executing a growth strategy centred on orders for the fuel-saving SAVER ships.