Seaspan extended current lease terms for 17 containerships with COSCO
Seaspan strengthens its creative customer partnership with COSCO SHIPPING Lines by forward fixing contracts for 17 containerships
Seaspan Corporation (“Seaspan”), a wholly-owned subsidiary of Atlas Corp. (“Atlas”) (NYSE: ATCO) announced that it has forward fixed contracts, extending current lease terms for 17 containerships with COSCO SHIPPING Lines (“COSCO”). The vessels, representing approximately 117,700 TEU, in aggregate, were previously scheduled to conclude current charters with COSCO for two vessels in 2021, 13 vessels in 2022, and two vessels in 2023, which have now all been extended for a three-year term beginning at the end of their current charter period. Over the course of the charter terms between 2023 and 2027, these contracts will generate approximately $0.7 billion of gross contracted cash flow. For charter rates that are subject to market variability, MSI forecast rates as of May 31, 2021, were used based on the age and the size of the vessels.
“The forward fixing of these 17 vessels is another milestone of mutual commitment to our long-term partnership throughout the market cycles. The immediate result of forward fixing is that we have a very limited number of vessel redeliveries in 2022 and 2023. I would like to thank both teams for their seamless teamwork in creating a win-win solution. COSCO will continue to enjoy Seaspan’s excellent operational quality, scale, and flexibility, while, at the same time, allowing Seaspan to forward fix material tonnage based on current market conditions to further strengthen our long-term charter business model. The mutually beneficial approach implemented to meet COSCO and other strategic customers’ strong demand has contributed to the stabilization of the market and facilitated our customers’ competitiveness and successes in serving their end customers,” commented, Bing Chen, Chairman, President and CEO of Seaspan.
About Atlas
Atlas is a leading global asset management company, differentiated by its position as a best-in-class owner and operator with a focus on deploying capital to create sustainable shareholder value. Atlas brings together an experienced asset management team with deep operational and capital allocation experience. We target long-term, risk adjusted returns across high-quality infrastructure assets in the maritime sector, energy sector and other infrastructure verticals. Our two portfolio companies, Seaspan Corporation and APR Energy are unique, industry-leading operating platforms in the global maritime and energy spaces, respectively.
About Seaspan
Seaspan is a leading independent owner and operator of containerships. We charter our vessels primarily pursuant to long-term, fixed-rate time charters to the world’s largest container shipping liners. At March 31, 2021, Seaspan’s fleet consisted of 127 containerships representing total capacity of approximately 1,073,200 TEU. On May 19, 2021, we announced the delivery of two second-hand vessels, increasing Seaspan’s operating fleet to 129 vessels and 1,090,200 TEU. We also have 39 vessels under construction and have agreed to purchase two additional second-hand vessels, increasing total capacity to 1,694,200 TEU, on a fully delivered basis.