Seaspan grows newbuild pipeline with 12-ship deal in China

Seaspan Corporation has secured a significant expansion of its fleet by ordering twelve new 9,000 TEU containerships from China. This latest deal, set to unfold at Hudong-Zhonghua Shipbuilding, marks a continuation of Seaspan’s strategic investments in the Chinese shipbuilding sector, with deliveries expected to commence in 2028.

Significant Expansion in Fleet Orders

The recent contract with Hudong-Zhonghua, a subsidiary of the China State Shipbuilding Corporation (CSSC), highlights Seaspan’s aggressive growth strategy. Under the leadership of Bing Chen, the company has positioned itself as a leading private-sector buyer of container ships from state-owned shipyards in China. Over the past four years, Seaspan has consistently increased its fleet, underscoring its commitment to meeting global shipping demands.

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This is not Seaspan’s first venture with Hudong-Zhonghua. Previously, the company ordered three 15,500 TEU vessels in 2021 and six 13,600 TEU ships earlier this year, scheduled for delivery between 2026 and 2028. Furthermore, Seaspan has also signed a letter of intent for six methanol-ready 8,300 TEU ships, reportedly intended for COSCO Shipping Lines. These successive orders indicate a robust confidence in the future of maritime trade and the capabilities of Chinese shipbuilders.

In addition to the recent orders at Hudong-Zhonghua, Seaspan confirmed earlier this year that Shanghai Waigaoqiao Shipbuilding (SWS) will construct six 11,400 TEU vessels for the company, with delivery starting in 2027. Each of these ships is priced at approximately $127 million, reflecting the high operational standards and advanced technology that Seaspan seeks to incorporate into its expanding fleet.

Strategic Financing and Delivery Plans

Seaspan has opted to finance its latest newbuilds in renminbi, a strategic move that may reflect the company’s intent to strengthen its ties with Chinese financial institutions. ICBC Financial Leasing is backing the project, which further solidifies the partnership between Seaspan and Chinese shipbuilders. The decision to proceed with financing in local currency could also mitigate foreign exchange risks associated with international transactions.

The newly ordered containerships are expected to cost over $100 million each and will be delivered as conventionally fueled vessels, with a dual-fuel option available. This choice aligns with the industry’s ongoing shift toward more environmentally friendly shipping practices, as companies increasingly seek to reduce their carbon footprints.

As the world’s largest boxship lessor, Seaspan operates a fleet exceeding 180 ships and has more than 40 newbuilds confirmed. This latest order reinforces Seaspan’s position as a key player in the global shipping market, poised to meet the demands of a rapidly evolving industry.