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
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.