Seaspan Takes Delivery of 11,000 TEU Containership

Maritime Activity Reports, Inc.

August 23, 2017

Seaspan Corporation said it has accepted delivery of the MSC Shuba B, an 11,000 TEU containership that will commence a 17-year fixed-rate bareboat charter with Mediterranean Shipping Company S.A. (MSC). Upon completion of the bareboat charter period, MSC is obligated to purchase the vessel for a pre-determined amount. The MSC Shuba B, which was constructed at HHIC-PHIL INC., is Seaspan’s first 11,000 TEU SAVER design containership in a series of five ships, all of which are signed to bareboat agreements with MSC.

Seaspan also announced that it has entered into fixed-rate time charter contracts with a leading liner for two 10,000 TEU newbuilding containerships currently under construction at Yangzijiang’s shipyards. The two vessels are currently scheduled to deliver in 2018 and, upon delivery, will commence three-year fixed-rate time charters with options to extend for up to an additional three years. Seaspan has entered into advanced discussions on financing these two newbuildings with a leading Asian financial institution.
Seaspan has also entered into agreements to sell four 4,250 TEU class vessels: the Seaspan Alps, Seaspan Grouse, Seaspan Kenya and Seaspan Mourne, for gross proceeds of approximately $37 million. Seaspan entered into agreements to purchase the vessels during the fourth quarter of 2016 and, after taking into account closing costs and vessel improvements, expects to record a gain on sale of the vessels of approximately $14 million. The individual vessel sales are expected to close during the third and fourth quarters of 2017.
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