Seaspan Corporation a wholly owned subsidiary of Atlas Corp. (“Atlas”) announced that ZIM Integrated Shipping Services Ltd. (“ZIM”) (NYSE: ZIM) has exercised its option to enter into long-term charters of five ultra-modern 7,000 TEU dual-fuel liquefied natural gas (LNG) containership newbuilds (the “LNG Containerships”). ZIM was granted this option in connection with the agreement to charter ten vessels of the same class announced on July 6th, 2021. Seaspan will enter into agreements with a major shipyard to construct the LNG Containerships, which are anticipated to be delivered during the third and fourth quarters of 2024. The LNG Containerships are anticipated to be financed from existing liquidity, cash flow from operations, and additional borrowings.

Transaction Highlights
• Five modern 7,000 TEU dual-fuel LNG vessels
• Aggregate purchase price of approximately $530 million
• 12-year minimum charters totaling approximately $900 million of gross contracted cash flow

Management Commentary

Bing Chen, Chairman, President and CEO of Seaspan, commented, “We continue to create value for our customers through differentiated services, operational excellence, and the ability to implement solutions tailored to our customers’ changing requirements. The exercise of this option, with valuable vessel deliveries at competitive pricing, highlights the continued quality growth for both companies. The advanced design of these vessels demonstrates Seaspan and ZIM’s leadership in ESG initiatives and a more sustainable industry. With strong customer interest in this vessel size, we consider this category to be the natural successor to the aging global fleet of conventional vessels between 4,000 and 9,000 TEU.”

Since December 2020, and including this announcement, Seaspan has announced 60 newbuild vessel orders and the acquisition of four second-hand vessels, all four of which have since been delivered. The chart below summarizes newbuild vessels which Seaspan has announced but has not yet received delivery of:

Vessel Class Newbuilds Total TEU
7,000 TEU LNG 15 105,000
12,000 TEU 6 72,000
12,200 TEU 5 61,000
15,000 TEU 16 240,000
15,000 TEU LNG 10 150,000
15,500 TEU 6 93,000
24,000 TEU 2 48,000
Total 60 769,000