Seaspan orders ten dual-fuel LNG containership newbuilds

15 February 2021 (Last Updated February 15th, 2021 11:45)

Atlas Corporation subsidiary Seaspan has signed agreements with a major shipyard for as many as ten 15,000 twenty-foot equivalent unit (TEU) dual-fuel liquefied natural gas (LNG) containership newbuilds.

Seaspan orders ten dual-fuel LNG containership newbuilds
The deliveries for the containerships are expected to begin in the first half of 2023. Credit: Ashley-Belle Burns / Shutterstock.

Atlas Corporation subsidiary Seaspan has signed agreements with a major shipyard for as many as ten 15,000 twenty-foot equivalent unit (TEU) dual-fuel liquefied natural gas (LNG) containership newbuilds.

The deliveries for the containerships are expected to begin in the first half of 2023.

Once delivered, the newbuilds will be chartered to a global liner for approximately 12 years.

The containerships are expected to be financed from cash on hand and additional borrowings.

The newbuilds will provide an additional capacity of 259,000 TEU to the Seaspan’s fleet.

Seaspan chairman, president, and CEO Bing Chen said: “We are extremely honoured to facilitate our customer’s industry-leading environmental initiative. Our commitment to ESG principles, carbon reduction, and developing our fleet through increasingly environmental-friendly technologies is signified by our first LNG-powered investment. 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. These transactions clearly demonstrate our ability to seize opportunities to develop industry-leading customer solutions and our commitment to quality growth backed by long-term committed partnerships.”

In addition, Seaspan has signed a strategic agreement with ZIM Integrated Shipping Services for the long-term charter of ten 15,000 TEU LNG dual-fuel container vessels.

The vessels will be deployed for ZIM’s Asia-US East Coast trade and are expected to be delivered between February 2023 and January 2024.

ZIM president and CEO Eli Glickman said: “This is a milestone agreement for ZIM, valued in excess of $1bn, that enables us to achieve two important strategic objectives. 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.”

Seaspan’s global fleet includes nearly 127 vessels with approximately 1,073,000 TEU capacity.

Since December last year, Seaspan has announced 17 newbuild vessels that include five 12,200 TEU, two 24,000 TEU, and ten LNG dual-fuel 15,000 TEU.