Seaspan Orders Eco-Ships as Part of a 7 Vessel Order Spree

by Ship & Bunker News Team
Wednesday April 29, 2015

Seaspan Corporation [NYSE:SSW] (Seaspan) Monday reported that it has entered into contracts for seven newbuilding containerships in two deals worth approximately $653.5 million.

Two of the vessels will be built using Seaspan's fuel-efficient SAVER design and have a capacity of 10,000 TEU.

They will be built at Jiangsu Xinfu and Jiangsu New Yangzi Shipbuilding Company Limited in a deal worth approximately $186 million, with both vessels said to still be subject to allocation.

In a separate $467.5 million deal, Seaspan reported five other newbuild box ships will have a capacity of 11,000 TEU and are now under construction by Hanjin Heavy Industries and Construction Philippines, Inc (HHIC-PHIL INC.).

All five vessels were said to have already been fixed on 17-year charters with "a leading operator" at the conclusion of which, the operator will purchase each vessel at a pre-determined amount.

Under a right of first refusal agreement with Greater China Intermodal Investments LLC, ("GCI"), Seaspan said it retained three of the vessels, and GCI acquired the remaining two.

The report indicates that all seven ships are scheduled for delivery in 2017.

Last year Seaspan CEO Gerry Wang told analysts his customers' demand for large eco-class container ships was driven by a desire for cost reduction rather than a desire for market share.

Ship & Bunker News Team
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