Containership leasing company Seaspan Corporation has announced it has forward-fixed contracts and extended current lease terms for 17 containerships with COSCO SHIPPING Lines.
The ships, representing approximately 117,700 TEU, were previously scheduled to conclude current charters with COSCO for two vessels in 2021, 13 vessels in 2022, and two vessels in 2023, which have now all been extended for a three-year term beginning at the end of their current charter period.
According to Seaspan, the charter terms of the contracts will generate approximately $700 million of gross contracted cash flow over the course of the contracts.
“The forward fixing of these 17 vessels is another milestone of mutual commitment to our long-term partnership throughout the market cycles,” said Bing Chen, Chairman, President and CEO of Seaspan. “The immediate result of forward fixing is that we have a very limited number of vessel redeliveries in 2022 and 2023.”
Seaspan Corporation is a wholly-owned subsidiary of Atlas Corp. (NYSE: ATCO). Seaspan’s operating fleet currently consists of 129 vessels and 1,090,200 TEU. The company also has 39 vessels under construction and further agreements to purchase second-hand vessels, increasing total capacity to 1,694,200 TEU, on a fully delivered basis.
“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,” added Chen.