Seaspan Orders 10 Dual-fuel LNG Containerships

Seaspan Corporation announced Friday that it has entered into an agreement to order up to 10 dual-fuel liquefied natural gas (LNG) containerships from South Korean shipbuilder Samsung Heavy Industries.

Seaspan, a wholly owned subsidiary of Atlas Corp., said the deal is for five ultra-modern 15,000 TEU newbuilds, with an option for an additional five. The containerships are scheduled for delivery from first half of 2023 onward, and upon completion will enter 12-year charters with Israel-based shipping company ZIM for its Asia - US East Coast trade.

"This is a milestone agreement for ZIM, valued in excess of $1 billion, that enables us to achieve two important strategic objectives," said Eli Glickman, ZIM president & CEO. "First, these top of the line advanced vessels will allow us to meet growing market demand on the Asia - US East Coast trade and provide top-level, reliable service to our customers on this important trade lane. Second, in line with our core sustainability values, investing in LNG-fueled 'green' vessels demonstrates our continued commitment and leadership in addressing environmental issues related to our industry, meeting customer demand to reduce CO2 emissions, helping to preserve clean air and reducing our carbon footprint."

Bing Chen, Chairman, president and CEO of the Hong Kong-based shipowner, said the order signifies Seaspan's first LNG-powered investment, ordered to facilitate facilitate its customer's environmental initiative.

"We are expanding the scope of our customer solutions by elevating our focus on lowering the impact of emissions, which will result from the adoption and addition of LNG-powered vessels to our fleet," Chen said.

The containerships will be financed by cash on hand and from additional borrowings, Seaspan said.

"As we have executed sustainability-linked financing which parallels this fleet expansion, we are resolved to contribute to a greener business community in the future,” Chen said. “These transactions clearly demonstrate our ability to seize opportunities to develop industry-leading customer solutions and our commitment for quality growth backed by long-term committed partnerships."

Since December 2020, Seaspan has announced orders for 17 newbuilds, including five 12,200 TEU vessels, two 24,000 TEU vessels and today's order of 10 LNG dual-fuel 15,000 TEU vessels, which will add capacity of 259,000 TEU to the fleet.