Seaspan orders 15,000 TEU dual-fuel LNG boxship fleet

Seaspan Corporation, a Hong Kong-based owner and operator of container vessels and a subsidiary of Atlas Corp, has ordered ten 15,000 TEU LNG-fuelled dual-fuel containerships from South Korean shipbuilder Samsung Heavy Industries (SHI).

The newbuilds will be chartered out to Israel’s container shipping company ZIM Integrated Shipping Services (ZIM) and will serve the carrier’s Asia – US East Coast trade.

As informed, the containerships are anticipated to begin deliveries in the first half of 2023, afterwards starting the 12-year charters.

“Our commitment to ESG principles, carbon reduction, and developing our fleet through increasingly environmental-friendly technologies is signified by our first LNG-powered investment,” Bing Chen, Chairman, President and  CEO of Seaspan, commented.

“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. 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.”

According to Seaspan, the boxships are expected to be financed from additional borrowings as well as cash on hand.

As of September 30, 2020, Seaspan’s global fleet consisted of 127 vessels and approximately 1,073,000 TEU. Since December 2020, and including the LNG containerships announced today, Seaspan has ordered 17 newbuild vessels, including five 12,200 TEU, two 24,000 TEU, and the ten LNG dual-fuel 15,000 TEU, which will add significant new capacity of 259,000 TEU to the fleet.

Separately, ZIM announced a strategic agreement for the long-term charter of the ten eco-friendly boxships.

“This is a milestone agreement for ZIM, valued in excess of one billion dollar, that enables us to achieve two important strategic objectives,” Eli Glickman, ZIM President & CEO, pointed out.

“First, these … vessels will allow us to meet growing market demand on the Asia – US East Coast trade… Second, in line with our core sustainability values, investing in LNG-fueled ‘green’ vessels demonstrates our continued commitment … 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.”

“This transaction signifies both ZIM’s and Seaspan’s commitment to ESG principles, carbon reduction, and resolve to contribute to a greener business community in the future,” Chen noted.