Seaspan orders 27 dual-fuel container ships

Hong Kong-based container ship lessor Seaspan Corporation has entered into shipbuilding contracts for 27 new dual-fuel container ships as part of its ongoing fleet expansion programme.

The vessels, which range between 9,000 and 17,000 TEU, are expected to be delivered between 2027 and 2028, according to a recent filing by its parent company, Atlas Corporation, with the US Securities and Exchange Commission.

The orders include:

• Four 9,000 TEU duel-fuel methanol container ships, four 9,000 TEU dual-fuel liquefied natural gas (LNG) container ships and five 17,000 TEU dual-fuel LNG container ships.
• Five 17,000 TEU dual-fuel LNG container ships and five 16,000 TEU dual-fuel LNG container ships.
• Four  9,000 TEU dual-fuel LNG container ships.

“Four of these contracts were immediately novated to a customer. 13 of these contracts were thereafter novated to certain nominees and upon delivery, these 13 newbuilds will be chartered by the company from such nominees under bareboat charters. The vessels will be delivered between 2027 through 2028 and each vessel will commence a long-term charter upon delivery,” Atlas Corporation said in the filing.

However, the company did not disclose the shipyards involved, specific delivery dates, or potential chartering parties.

As of 30 June 2024, the company had 41 vessels under construction.

The ordering coincides with the latest ordering spree by container shipping liners, led by major industry names including MSC, CMA CGM, and most recently, Maersk. The Danish container shipping giant announced plans to secure a total dual-fuel capacity of 800,000 TEU, with deliveries expected between 2026 and 2030. This move continues the 2021 fleet renewal plan, with the company targeting a renewal pace of about 160,000 TEU per year. According to the company’s head, Vincent Clerc, most of these ships have already been ordered, which suggests that one of the aforementioned orders could be from Maersk.

Seaspan’s revenue increased by 37.9% to US$556.4 million and by 35.8% to US$1,075.1 million for the three and six months ended June 30, 2024, respectively, compared with the same period in 2023. The company said the increase in revenue was primarily due to the delivery of 39 newbuild vessels since June 2023, of which 24 were delivered in the six months ended June 2024, and lower off-hire days due to fewer scheduled dry-docks.