Seaspan Feeds Boxship Building Boom Ordering Six More Vessels
The building boom for containerships is continuing with the orderbook adding yet six more large vessels to be built in China for Seaspan. The Canada-based owner-lessor of vessels is maintaining its order pace even as it takes delivery of new vessels that operate under long-term charters with major carriers.
China State Shipbuilding Corporation (CSSC) is reporting that its Hudong-Zhonghua subsidiary signed the latest order on Friday, October 18 to build six 13,600 TERU vessels for Seaspan. Due for delivery between 2026 and 2028, they will be conventionally fueled but fitted with scrubbers and prepared for green fuel conversion. The ships will be 1,102 feet (336 meters) in length with a maximum capacity of 14,132 TEU including 2,000 reefer slots.
Possibly to combat the rising prices of vessels, Hudong-Zhonghau reports this is the first larger order and one of only a few that is being denominated in the Chinese RMB currency. No order value was reported but Seaspan will settle it in RMB making it one of the few international orders using Chinese currency for payment. For Seaspan it should help to reduce financing costs and the exchange risks for both the owner and shipyard. The Chinese are highlighting it as they seek to further expand their shipbuilding dominance and internationalize the RMB.
Princes for newbuilds are up dramatically in the past few years according to a new report from UK-based Clarksons Research. They wrote in the report that prices are up more than 50 percent over the past four years in part due to the building boom, inflation, larger vessels, and new technologies. Prices they reported are at record highs not seen in more than 15 years. They expect the newbuilding market to remain strong.
The containership segment shows continued strength. Alphaliner sets the current newbuild orders at a record pace this year with currently over 260 vessels on order. They report the sector has over 3 million TEU on order. Earlier this month, Alphaliner highlighted that the TEU capacity orders were at an all-time high.
Hudong-Zhonghua reports this is the third batch of 15 large containership orders it has taken on this year and expands the relationship with Seaspan which has ordered more than 20 containerships from CSSC since 2021. Hudong-Zhonghua has received more than 100 orders for large and ultra-larger containerships highlights CSSC.
Seaspan currently has a fleet of more than 170 vessels according to its filings as of June 2024. The company took delivery of 18 new vessels in the first half of 2024 yet its orders rose from 40 as of December 31, 2023, to 41 as of June 30, 2024. In June 2024, Seaspan ordered a total of 27 containerships with a capacity ranging between 9,000 and 17,000 TEU it reported in a Securities Exchange Commission filing. Those orders are due between 2027 and 2028.