CP Ships Commits to Newbuild Charters

CP Ships Limited today announced its agreement to the long-term charter of nine 4250 teu newly built containerships from Seaspan Container Lines for a term of up to ten years. Scheduled for delivery between late 2005 and early 2007, the ships will be built by Samsung Heavy Industries of Korea. "We recently completed a four-year $800 million ship investment program to replace chartered ships with owned ships. But with the addition of Italia Line last year, various service expansions and the prospect for future trade growth our requirements have evolved. These new long-term charters will ensure we have the right ships when we need them and reduce further our reliance on the volatile, and through the cycle more expensive, short to medium term charter market," commented CP Ships CEO Ray Miles. "Furthermore, the charter rate is close to our equivalent cost of ownership including financing." CP Ships already has six similar 4100 teu ships in its fleet and this ship size will represent a core element of the long-term fleet required to service its regional trades.