Seaspan, a wholly-owned subsidiary of Atlas Corp. announced that it has forward fixed contracts, extending current lease terms for 17 containerships with COSCO SHIPPING Lines (“COSCO”). The vessels, representing approximately 117,700 TEU, in aggregate, were previously scheduled to conclude current charters with COSCO for two vessels in 2021, 13 vessels in 2022, and two vessels in 2023, which have now all been extended for a three-year term beginning at the end of their current charter period. Over the course of the charter terms between 2023 and 2027, these contracts will generate approximately $0.7 billion of gross contracted cash flow.1
“The forward fixing of these 17 vessels is another milestone of mutual commitment to our long-term partnership throughout the market cycles. The immediate result of forward fixing is that we have a very limited number of vessel redeliveries in 2022 and 2023. I would like to thank both teams for their seamless teamwork in creating a win-win solution. COSCO will continue to enjoy Seaspan’s excellent operational quality, scale, and flexibility, while, at the same time, allowing Seaspan to forward fix material tonnage based on current market conditions to further strengthen our long-term charter business model. The mutually beneficial approach implemented to meet COSCO and other strategic customers’ strong demand has contributed to the stabilization of the market and facilitated our customers’ competitiveness and successes in serving their end customers,” commented, Bing Chen, Chairman, President and CEO of Seaspan.
1. For charter rates that are subject to market variability, MSI forecast rates as of May 31, 2021, were used based on the age and the size of the vessels.