Seaspan exercises boxship options

Hong Kong-based Seaspan Corporation exercised its option to build four 2500 TEU vessels at Jiangsu Yangzijiang Shipbuilding (YZJ), one of the largest private shipyards in China. This option was part of the February contract with YZJ that included the firm order of four 2500 TEU vessels and options to build eight more at the same price. These new orders will increase the company’s total fleet to 33 vessels when the vessels are delivered between May and August 2009 at a cost of approximately $44.7 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) on the same terms and conditions as the charters for the first four vessels in the series. CSCL Asia is a subsidiary of China Shipping Container Lines (CSCL), the world’s seventh largest liner company. CSCL will guarantee CSCL Asia’s performance under the charter parties.

CSCL Asia still holds an option to order a further four vessels from YZJ priced at the same level as the eight already ordered. The option to build the remaining four vessels in the series will only be exercised if acceptable long-term charters are arranged. Seaspan has until 30 September, 2006 to exercise this final option.