China Shipping to charter at least four 2,500-TEU ships from Seaspan

China Shipping to charter at least four 2,500-TEU ships from Seaspan    Fast-growing non-operating charter owner Seaspan Corp., has signed a contract with Jiangsu Yangzijiang Shipbuilding in China to build four 2,500-TEU vessels at a cost of about $44.5 million per ship.
   The four vessels are scheduled to be delivered September 2008 and March 2009, when they will be chartered to China Shipping Container Lines for 12 years at an initial rate of $16,750 per day, increasing to $16,900 per day after six years.
   Seaspan also has an option with Jiangsu, expiring June 30, to order a further eight same-size vessels in two batches of four at the same price as the firm order.
   If Seaspan takes up the options, China Shipping will have the right to charter the first four additional ships, for delivery between May and August 2009, at the same charter rates. Seaspan said it will only consider the second tranch of four 2,500 TEU vessels if “acceptable long-term charters were arranged.”
   “These new orders will allow Seaspan to enter a new segment of the containership market by building a new fleet of uniform ships,” said Gerry Wang, chief executive officer of Seaspan. “This acquisition also expands our longstanding relationship with CSCL and is another step in our growth trajectory.
   “We have structured this transaction in a way that provides us with optimal flexibility and minimal risk. However, we think it is prudent to have locked in the option to expand our fleet. We have already seen interest from our existing customers, as well as other major shipping lines, to potentially enter into long-term charters for these vessels, should we decide to build them,” said Wang.
   Seaspan owns a fleet of 15 containerships comprising 13 4,250-TEU vessels and two 8,500-TEU vessels. Over the next 18 months, Seaspan will add the following to its fleet: six 4,250-TEU vessels, two 9,600-TEU vessels, two 3,500-TEU vessels, and now at least another four 2,500-TEU ships.
   Seaspan said it is arranging long-term debt financing for the firm order, which is expected to be in place within six weeks.
   The company raised about $600 million from its initial public offering when it listed on the New York Stock Exchange last August.