Seaspan Forward resolves five-year contracts for 10 container ships

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Seaspan Corporation announced that it has entered into fixed forward contracts for 10 container ships with a “major liner customer,” bringing the company’s total forward contracts in 2021 to 58 vessels, or approximately 50% of its charter fleet. time.

The ships, representing around 100,000 TEUs in total, were previously expected to have four charters expiring in 2022, four charters expire in 2023 and two charters expire in 2024, Seaspan said. The 10 vessels have now been secured by new five-year charter agreements, starting at the end of their current charter periods.

According to Seaspan, a wholly owned subsidiary of Atlas Corp., the fixed-term charters will generate approximately $ 670 million in additional gross contractual cash flow. Charters have a fixed rate for the first three years and the remaining term is based on a market rate within a certain floor and ceiling. The calculation is based on the minimum charter period and the floor rate for the period subject to market rates.

Bing Chen, Chairman and CEO of Seaspan, said, “We continue to leverage our differentiated business model to deliver creative customer solutions by pre-securing operating vessels and building new vessels. number in 2022, 2023 and 2024, which protects us from future market volatility while continuing to increase long-term quality cash flow through all market cycles. “

Chen added, “Seaspan continues to strengthen its differentiated business model by committing future hardware capacity in the current market. This mutually beneficial approach, based on our long-term commitment and creative partnerships, facilitates the success of our strategic clients, helps stabilize the market and consolidates our leadership position in the market. “


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