Seaspan orders feeders

Seaspan Corporation has signed a contract to build four 2,500 TEU vessels from Jiangsu Yangzijiang Shipbuilding in China. These new orders are incremental to Seaspan’s original contracted fleet and will increase the company’s total fleet to 29 vessels. The four newbuilding vessels will be delivered between September 2008 and March 2009. The total delivered cost is expected to be approximately $44.5 million per vessel, subject to certain pre-delivery expenses remaining at budgeted levels.

Seaspan also announced that it has arranged simultaneous twelve-year charter agreements for these four vessels with China Shipping Container Lines (Asia) Co. Ltd. (“CSCL Asia”). The 2,500 TEU vessel size will complement Seaspan’s existing fleet consisting of 9,600 TEU, 8,500 TEU, 4,250 TEU, and 3,500 TEU vessels.

Vancouver-based Seaspan also has, in addition to the firm order for the initial four 2,500 TEU vessels, the option to order an additional eight 2,500 TEU ships in two tranches of four vessels each, for the same price as the initial four. If the additional vessels are built, CSCL Asia would have the option to charter the second group of four vessels under the same terms as the first four. The last group of four vessels would only be built if acceptable long-term charters were arranged. Seaspan would have until 30 June 2006 to exercise these options.