The Seaspan Corporation announced Tuesday that it has entered into long-term charters with ZIM Integrated Shipping Services. This includes ten ultra-modern 7,000 TEU dual-fuel liquefied natural gas containership newbuilds. Deliveries are anticipated to begin in the fourth quarter of 2023 and through 2024. Seaspan will enter into agreements with a major shipyard to construct these LNG Containerships, which are predicted to be financed from existing liquidity, cash flow from operations, and additional borrowings.
Bing Chen, Chairman, President and CEO of Seaspan, commented, "We are very pleased to collaborate with ZIM on this forward-thinking project which provides advanced designs, competitive pricing and valuable deliveries. We see these modern 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."
Graham Talbot, CFO of Seaspan, added, "We continue to execute on our growth plan in a prudent manner. 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. We intend to maintain balance sheet and risk management integrity while continuing the growth track that we have established over Seaspan's 20-year history. We remain diligent on our path toward an investment grade credit rating, and operational scale will play an important role in this pursuit."